First Mortgage Corp., Ontario, CA, this month completed its liquidation, selling its branch network and $6 billion of servicing rights to other firms, and winding down a 44-year-old business that catered to FHA borrowers with lower credit scores. Jean Ziroli-Kobielsky, a recruiter for the family-owned business, noted that it wasn’t fear of regulatory oversight that prompted her father and brother to sell FMC, it was technology: “Some of our technology systems were still using DOS,” she told Inside Mortgage Finance. (DOS, or disk operating system, was the precursor to the Microsoft Windows software line for PCs.) She said...
Although most analysts and industry observers agree that the FHA cut in mortgage insurance premiums, effective in January, has resulted in stronger purchase volumes and credit availability, opinions vary as to whether another reduction is on the way. The FY 2014 independent actuarial audit of the FHA Mutual Mortgage Insurance Fund projected FHA’s total loan production in fiscal 2015 at $124 billion. With the FHA pricing adjustment, production is now expected to increase by 60 percent, with total production estimated at $200 billion by the end of the fiscal year, said Brian Chappelle, an industry consultant. As program fundamentals trend upward, Chappelle is...
Mortgage production ran into a seasonal buzz-kill and stiffer headwinds from interest rates during the third quarter of 2015, leading to a modest decline in volume, according to a new InsideMortgage Finance market analysis and ranking. An estimated $455.0 billion of single-family first-lien mortgages were originated during the third quarter, down 7.1 percent from the second quarter of 2015. But on a year-to-date basis, total originations were up 42.9 percent from the first nine months of last year. In fact, at $1.350 trillion, production through the end of September had already topped last year’s $1.300 trillion. A lot of this year’s increase came...[Includes two data tables]
As program fundamentals trend upward, industry consultant Brian Chappelle is optimistic that another rate cut will happen – it’s just a matter of when.
In addition to alternative credit scoring models and low downpayment products, panelists suggested more public/private partnerships are needed to create affordable housing communities.