Commercial banks and savings institutions are continuing their years-long flight from the volatile business of holding mortgage-servicing rights on their balance sheets, according to a new Inside Mortgage Trends analysis of call report data. At the end of June, banks and thrifts serviced $3.916 trillion of single-family mortgages for other investors, usually mortgage-backed securities trusts. That was down 2.1 percent from the previous quarter and ... [Includes one data chart]
It’s no secret that PHH Corp. is losing money and hopes for a buyout offer that will net stockholders something closer to its book value of $24 a share compared to its current price of $15. But the big question remains: Can PHH pull off a deal before more bad news swamps the company?In a recent 10-Q filing with the Securities and Exchange Commission, the nation’s ninth largest servicer of home mortgages noted that it’s continuing its “strategic review process,” including a ...
The parent company of FirstBank this month filed for an initial public offering of common stock, hoping to raise upwards of $115.0 million. Among its goals: to increase originations and bolster its investment in mortgage servicing rights. Headquartered in Tennessee, the community bank has significantly increased its mortgage activity in recent years, according to IPO documents filed with the Securities and Exchange Commission by FB Financial. The bank funded $2.76 billion in ...
A proposed rule published by the Federal Deposit Insurance Corp. earlier in the year regarding recordkeeping requirements would “unnecessarily increase costs for banks and servicers,” according to George Green, an associate vice president at the Mortgage Bankers Association. The proposed rule would apply to depositories with more than two million deposit accounts. Under the regulation, banks would generally be required to maintain complete and ...
Fix-and-flip lender California Capital Real Estate Advisors, Pasadena, late last month raised $10 million in capital through its CALCAP Income Fund 1. The company hopes to add at least $15 million more by the time September ends. Its eventual goal: to raise $100 million. Started by industry veteran Mark Mozilo and others in the wake of the financial crisis, the company’s forte is lending money to contractors who purchase homes and fix them up for a quick resale. In 2015 ...
Proponents of the mortgage interest tax deduction point out that the real estate and mortgage industries employ thousands upon thousands of workers with spillover to other sectors...
While Fannie Mae has mopped up virtually all of the buyback disputes on loans more than a few years old, Freddie Mac still has a stubborn supply of legacy repurchase demands on its hands. A new Inside The GSEs analysis of repurchase activity disclosures for the second quarter of 2016 reveals that 39.6 percent of Freddie’s pending and disputed buyback claims involved loans that were securitized prior to 2008. At Fannie, such loans accounted for just 0.7 percent of unresolved buyback demands as of the end of June. Freddie did make progress during the second quarter, however. In fact, 34.8 percent of the seller repurchases or indemnifications made during the...
The GSEs recently introduced a new loan dispute procedure that lenders should use prior to engaging a third-party arbitrator. Fannie Mae and Freddie Mac launched their independent dispute resolution process early in the year as the final piece to the representation-and-warranties framework to help prevent buybacks.This process uses a neutral third-party arbitrator to determine a final, binding decision about whether there was a loan violation.However, the new impasse and management escalation process, announced last week, is intended to serve as an intermediary between the normal loan dispute appeal process and the final IDR process for seller/servicers.
Fannie Mae and Freddie Mac will implement a new high loan-to-value refinance option in October 2017 to replace the Home Affordable Refinance Program but lenders say it’s too early to know what to expect. While HARP was set to expire at the end of the year, the Federal Housing Finance Agency extended it to Sept. 30, 2017, so there is no gap in refinance offerings. The new high loan-to-value streamlined refinance option has not been named yet, but targets borrowers who are current on their mortgage loans, but have not been able to refinance through traditional programs because of high loan-to-value ratios.
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