The government-sponsored enterprises should revise their representation and warranty policies, including setting a two-year sunset, according to the Urban Institute’s new Housing Finance Policy Center. The move could reduce underwriting overlays set by lenders and increase credit availability. “We would expect to see a small but perceptible widening of credit in the months ahead, but it’s going to be very small until we solve the rep and warrant issue and the regulatory uncertainty issue,” said Laurie Goodman, director of the HFPC, during an event to launch the center. As directed by the Federal Housing Finance Agency, Fannie Mae and Freddie Mac this year established...
The Treasury Department’s “strategic plan” includes working to reform the government-sponsored enterprises and establishing a new position for a chief risk officer, according to a memo by Mary Miller, the Treasury’s undersecretary for domestic finance. The memo was dated Sept. 16 and uncovered this week by Bloomberg News. Reliable sources confirmed the accuracy of the report. According to the memo, the Treasury plans...
The refrain from bank management was virtually unanimous: mortgage production dropped significantly and gain-on-sale margins narrowed. Although mortgage servicing right values continued to climb, that doesn’t always translate into improved earnings on that side of the business.
Is Ed DeMarco unimpressed with Fannie and Freddie's return to profitability? “…we should keep the recent reports of positive net income in perspective,” he told the audience of the Bipartisan Policy Center this week. “Much of it has been related to one-time adjustments..."
Banks of all sizes reported sharp declines in their mortgage banking earnings during the third quarter of 2013, according to a new analysis by Inside Mortgage Trends. The refrain from bank management was virtually unanimous: mortgage production dropped significantly and gain-on-sale margins narrowed. Although mortgage servicing right values continued to climb, that doesn’t always translate into improved earnings on that side of the business. A diverse group of 19 lenders – including all ... [Includes one data chart]
The market for servicing sales has been strong for most of 2013, but could get even better between now and year-end as the megabanks look to dump their “legacy” problems and small shops sell mortgage servicing rights to boost earnings in a weak origination market. “It used to be that Bank of America, Wells, and JPM were the buyers [of servicing],” said Tom Piercy, managing member of Interactive Mortgage Advisors, Denver. “Now they’re the sellers. It’s a totally different environment now.” A year ago ...
As lawmakers turn their attention to mortgage finance reform, including a final resolution of Fannie Mae and Freddie Mac, industry observers point to the current bipartisan effort in the Senate as the most promising avenue to legislative consensus. However, practical complexities and political considerations all but guarantee that the answer to the GSE question won’t be arrived at the easy way or anytime soon.
The ability-to-repay rule issued by the Consumer Financial Protection Bureau in January would exclude more than one in five loans originated today from the full “safe harbor” legal protections for so-called qualified mortgages. That’s the chief finding of an analysis of August and September 2013 originations by ComplianceEase, a provider of risk management solutions based in Burlingame, CA. ComplianceAnalyzer, the firm’s patented automated compliance solution, is now capable of auditing loans for ...
BOK Financial is jumping into the online mortgage origination channel with the launch of HomeDirect Mortgage to serve consumers who are increasingly going to the Internet to shop for mortgages. The Tulsa-based company said the new channel complements BOK’s mortgage operation, which originated an estimated $4 billion in loans through its retail channel in 2012. As a “direct” lender with an automated online application system, HomeDirect is aiming for homebuyers who are computer savvy and searching ...
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