Prospect Mortgage of Sherman Oaks, CA, is a strong candidate for an initial public offering: It’s a retail-only originator whose loan production is top-heavy in purchase-money loans and it has all the right agency and FHA approvals. The privately-held firm also has a $13 billion servicing portfolio and licenses to lend in 48 states. Moreover, in early September it raised $150 million by selling five-year senior notes in the capital markets. Over the past few months rumors have surfaced that the ...
Lender-paid mortgage insurance has garnered renewed interest lately from mortgage lenders as an alternative to FHA-insured loans, whose increased costs have shut out many cash-strapped borrowers. David Williams, vice president of RightStart Mortgage in Pasadena, CA, said his firm has been getting a lot of requests from wholesale brokers for conventional conforming loans with LPMI because the FHA product has lost its competitive edge. With borrower-paid private MI, the homeowner pays a monthly ...
Nonbanks are better than banks at controlling foreclosure timelines and servicing costs, according to industry analysts. Nonbank special servicers have significantly increased their servicing portfolios in the past year and expect to acquire even more servicing from banks in 2014. “The cost of servicing for banking institutions has increased in lockstep with the additional processes to maintain compliance with regulatory requirements,” according to Fitch Ratings. “In response, a number of large banks have employed ...
Capacity constraints and demand for same-servicer refinances helped lenders book significant profits in recent years, according to an analysis published by the Federal Reserve Bank of New York. Lenders’ profits have declined in recent quarters with the shift toward purchase-mortgage originations due to higher interest rates. A group of researchers determined that higher prices paid by investors in agency mortgage-backed securities in recent years weren’t offset by corresponding increases in ...
Independent mortgage bankers saw increased value in their servicing assets that helped offset slumping production volume in the third quarter, according to a quarterly survey by Richey May & Co. The accounting and business advisory firm found that overall production slid 12.4 percent from the second quarter, and refinance volume was down 42.0 percent. The survey also found that average values of indies’ servicing portfolios increased by seven basis points from the second quarter to the third ...
A civil complaint filed by W.J. Bradley Mortgage in California state court against a former top loan officer and her new employer could decide what type of contact and other information an LO can take with them when they leave a firm. Since the fall, the WJB suit filed against former company LO Shelly Logemann, her new employer RPM Mortgage, its owners and others has been the talk of mortgage-banking circles in California and elsewhere. The case is being closely watched...
The strength of the non-agency jumbo market, at a time when securitization of these loans has slowed, suggests there is plenty of investor appetite for non-agency jumbos.
In its fundraising pitch for its lawsuit against the CFPB, the NAIHP states that, “Neither Congress nor the executive branch holds any authority to curb CFPB’s behavior. Only the courts can stop them.”
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