More than half of FHA-insured loans analyzed for material defects have been mitigated over a 12-month period, according to the Department of Housing and Urban Development’s latest quarterly loan-review analysis. Approximately 31,396 loans were analyzed over four quarters for possible defects, beginning in the third quarter of 2017 and ending the second quarter of 2018. Approximately 59.8 percent of the reviewed loans were initially deemed unacceptable. HUD data showed that most, 54.1 percent, of the loans reviewed have been successfully mitigated. The report provides a quarter-by-quarter snapshot of the FHA’s Loan Review System results. Net defects represent outcomes after lenders have implemented methods and techniques to mitigate or remediate the initial findings. Of the reviewed loans, 24.7 percent were conforming while 15.5 percent were found to be deficient. About 0.2 percent of loans were ...
The U.S. District Court for the Southern District of Iowa earlier this month granted preliminary approval of an $11.2 million settlement in a proposed class-action against national bank JPMorgan Chase. According to the complaint filed in 2016, Chase charged and collected interest on FHA-insured loans that paid off early. Chase was either the lender or the servicer of the loans. The lawsuit, Audino et al. v. JPMorgan Chase Bank, alleges that the bank breached the promissory notes underlying the class’s FHA-insured home loans when it collected post-payment interest without providing disclosures to borrowers who made a prepayment inquiry, request for payoff figures, or tender of prepayment. Plaintiffs allege that the bank did not use the proper FHA form to provide the disclosures to consumers. Chase denies any wrongdoing and neither admits nor concedes any actual or potential fault or liability. The bank also denies it was ...
Angel Oak Companies this week reported record non-QM originations of $512.0 million for the second quarter, giving it an annual run-rate of more than $2 billion – another bullish sign this fledgling sector will post stronger growth rates than conventional and government lenders in the quarters ahead.
Fannie Mae and Freddie Mac continue to be significant players in the multifamily mortgage market, but some industry observers question whether the mortgage giants are doing too much in this arena and how they’re going about getting business.
Fannie Mae and Freddie Mac in a few days are expected to report second-quarter results that likely will top earnings of the prior period when they posted a combined net profit of $6.5 billion, according to an analysis by Inside MBS & ABS.
First Republic Bank and Flagstar Bank increased their originations of jumbo mortgages during the second quarter of 2018. First Republic funded $3.13 billion in single-family originations during the quarter. Jumbos account for the vast majority of its production. Originations by First Republic were up by 34.3 percent from the previous quarter and up by 2.6 percent from the second quarter of 2017. Jim Herbert, chairman and CEO of First Republic, said the bank was able to boost production even though ...
There’s a sharp divide in the mortgage industry regarding the prospects for originations of non-qualified mortgages. Smaller nonbanks that focus on such products have high hopes for the non-QM sector while larger lenders have low expectations. Justin Mahoney, a senior portfolio manager at SG Capital Partners, a non-QM lender, noted that the nonprime mortgage originations market is the only lending sector that hasn’t recovered since the financial crisis. “It represents a real growth opportunity ...
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