The adjustable-rate mortgage share of total originations declined in the third quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $50.0 billion of ARMs were originated in the third quarter, accounting for 11.5 percent of total originations. In the previous quarter, an estimated $55.0 billion of ARMs were originated, making up 12.4 percent of the market. ARM volume was also down from ... [Includes one data chart]
Ocwen Financial announced last week that it plans to launch non-agency originations in the second quarter of 2019, focusing on borrowers already in its servicing portfolio. The company detailed the plans in presentations to investors. Officials said Ocwen is expanding from originating agency mortgages into non-agency mortgages in an effort to maximize the potential to recapture borrowers in Ocwen’s servicing portfolio. The move is years in the making and follows a ...
An increase in asset-based underwriting by banks prompted warnings from the Office of the Comptroller of the Currency last week. The OCC said its examiners have seen greater use of asset dissipation underwriting, a practice used to qualify borrowers using a hypothetical income stream from their asset liquidation rather than debt-to-income ratios. Banks are increasingly using asset dissipation or asset depletion as a response to “intense competition” from nonbanks, among other ...
Brokers and correspondents looking for nonprime lenders to work with should consider the benefits provided by firms with vertical integration, according to a recent white paper by Citadel Servicing Corp. Citadel happens to be a vertically-integrated lender with wholesale and correspondent operations along with a servicing platform. The lender defined vertical integration as the combination of two or more stages of production at one company as opposed to the stages ...
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