The concept of the paperless mortgage is on the fast track to becoming the norm rather than the exception as technology advances improve productivity and influence thinking throughout the lending chain, according to a survey by Xerox Mortgage Services. Xerox’s seventh annual Path to Paperless survey found that most mortgage professionals now think online collaboration across multiple platforms is a key component to paperless mortgage adoption. Ninety-six percent of survey respondents indicated that working together through an electronic folder is crucial to achieving a more...

Its decision to dump its wholesale correspondent channel is the latest in a series of moves by Bank of America to distance itself from “legacy” mortgage issues, but analysts remain doubtful. Moody’s Investors Service last week downgraded the bank’s rating. “The downgrades result from a decrease in the probability that the U.S. government would support the bank, if needed,” thanks to the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the ratings firm said. Moody’s said that the government is likely to continue to provide some level of support to systemically important financial institutions. “However, it is also...

Mortgage lenders need to get a better understanding of their business in today’s economic and regulatory environment and be able to make important decisions quickly in order to stay competitive, according to industry experts. Having more thoughtful insight into the mortgage business lies in the ability of a lender to go deep into its mortgage portfolio and see the risks and opportunities. The key to improving portfolio performance, experts say, is better analytics and using solutions to maximize the value of the portfolio. Today, banks are forced to redefine their loan accounting reporting in light of new regulatory requirements and expectations of...

News media have for months barraged consumers with news of “record-breaking mortgage rates,” but some observers are confounded that the refinancing market isn’t exploding with consumers looking to take advantage of the historically low rates. Analysts at Barclays Capital chalk it up to originators setting higher mortgage rates for borrowers refinancing their homes than those purchasing a home, which might be a sign of capacity constraints. The purpose of the Federal Reserve’s Operation Twist is, in great part, to place more money in the pockets of borrowers in an attempt to stimulate greater activity in the housing market. However, much of...

States are moving quickly to implement laws and regulations facilitating “eExamination” of mortgage lenders, leveraging technological innovation to bring the industry closer towards the goal of self-examination and self-regulation. “We are close to 30 states that are doing eExaminations, and we’re trying to bring on additional states as we move forward,” said Michael Chan, vice president of technology vendor Compliance Ease. “One of the reasons why I would say we’re reaching a tipping point is that state regulators are conducting limited-scope electronic exams,” he added. The idea behind that is...

A majority of Americans say that they would be unable to pay their mortgage if they lose their jobs. According to a new Country Financial survey, 68 percent of homeowners say that, were they laid off, they wouldn’t have the means to continue paying their mortgages after nine months. U.S. Bureau of Labor Statistics from August 2011 place average length of unemployment at slightly under 10 months, meaning that most Americans could be a pink slip away from delinquency. For some, the situation is more ominous. Slightly less than a third of Americans – 31 percent – say that they would only be able to continue...

Redwood Trust issued its second non-agency MBS of the year this week with just one rating, a sign of dramatic change in the role of credit ratings in the market. During the heyday of the non-agency MBS market, very few public deals went to market without at least two ratings and some transactions were rated by all three of the top credit rating services. Standard & Poor’s was the market leader for years, but Fitch has had a virtual monopoly on the jumbo MBS sector, which totals just two deals so far this year. S&P has effectively taken to the sidelines in rating non-agency MBS backed by new mortgages, according to...

In a proposal that could reshape the economics and competitive landscape of the mortgage industry, the Federal Housing Finance Agency this week proposed two alternatives for servicing compensation on future Fannie Mae and Freddie Mac business that could end up being the model for the market beyond the government-sponsored enterprises.“As the recent problems in managing mortgage delinquencies suggest, the current servicing compensation model was not designed for current market conditions,” said FHFA Acting Director Edward DeMarco. “The goal of this joint initiative is to explore alternative models for single-family mortgage servicing compensation that...

Mortgage lenders originated a significantly higher share of new loan applications in 2010 than the year before, helping to offset a steep decline in consumer demand for mortgage credit, according to an Inside Mortgage Finance analysis of recently released Home Mortgage Disclosure Act data. The total volume of mortgage originations reported under HMDA fell 10.2 percent from 2009 to 2010, ending with $1.576 trillion. Although refinance transactions accounted for 67.1 percent of total HMDA originations last year, the refi market bore the brunt of the downturn, with the dollar volume of refinance production...(Includes one data chart)

The Federal Housing Finance Agency found itself on the defensive this week following a rapid-fire series of highly critical reports issued by its inspector general that questioned the agency’s capacity to oversee Fannie Mae and Freddie Mac effectively, as well as its decisions in specific cases. The FHFA Office of Inspector General said late last week that the FHFA’s examination program, the primary means by which it supervises and regulates the government-sponsored enterprises, faces “capacity and transparency shortfalls.” “The agency has too few examiners to ensure the efficiency and effectiveness of...