Trying to sell a residential finance company in a rising rate environment is never an easy thing, much less a mortgage technology company that is known for having a large client base of third-party lenders including loan brokers. But don’t tell that to Ellie Mae. Earlier this month the publicly traded mortgage software vendor saw its share price spike 25 percent after word leaked out that it was contemplating a sale. Although company co-founder and Chief Executive Sigmund Anderman declined to ...
Altisource Portfolio Solutions this month announced that a subsidiary will acquire Equator, the software service provider that helps facilitate home sales for four of the six largest servicers as well as the government-sponsored enterprises. The acquisition is valued at a base price of $70 million with an additional $80 million over three years, subject to Equator achieving performance targets. The sale is set to close by mid-September. Altisource said the acquisition diversifies its customer base and ...
No one in the mortgage industry expects that subprime lending will revive much unless it’s the subprime of yesteryear where equity was a key factor in determining whether a borrower should get a loan. The handful of subprime (“hard money,” call it what you will) lenders active today require hefty down payments in the range of 30 percent. The most successful subprime lender in terms of money raised is Citadel Loan Servicing of Irvine, CA, the brainchild of Dan Perl, which raised ... [Includes three briefs]
Mortgage income reported in bank call reports includes earnings from production, loan sales and net servicing results, so industry profits are not tied exclusively to new lending.
Radian has already paid $632 million to cover loss claims on the Freddie Mac loans through two different payments. It also had set aside $205 million in a collateral account to cover loss mitigation activity.
Joel Tillett and five other former employees were indicted in May on federal charges they conspired to defraud mortgage lenders by submitting loan applications that contained false information.
Many mortgage firms are hoping that a huge surge in purchase-money deals will compensate greatly for the declining refi market and that layoffs at their shops will be avoided.
A title insurance firm is taking a close look at due diligence provider Allonhill. Meanwhile, mergers and acquisitions in the residential finance industry could explode.
The Federal Housing Finance Agency is expected to announce lower GSE loan limits by October, a move that should provide a further boost to the jumbo mortgage-backed securities market, according to housing lobbyists and other industry observers tracking the issue. However, it’s unclear how much of a reduction to the current cap of $625,500 might occur.“I think everyone in the business is anticipating this and getting ready for it,” said one mortgage insurance source. A housing lobbyist added that, “Right now it’s a matter of timing. Will it come in October or a little later than that?”
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