For a firm that’s only been involved in the mortgage industry for a year, Eli Global has already bought a stake in two lending companies, inched its way into the warehouse lending arena – and become a plaintiff in a messy lawsuit that accuses a veteran mortgage banker of fraud. So far – except for the lawsuit filed by Eli Global affiliate CapLoc – the Durham, NC-based financial services company has kept a low profile while turning down repeated requests for interviews ...
Commercial banks and savings institutions saw a modest improvement in profits earned on mortgage-banking activities during the second quarter, according to a new Inside Mortgage Trends analysis of call report data. In aggregate, banks and thrifts earned $3.72 billion from mortgage banking during the second quarter, a 4.4 percent increase from the first three months of the year. Year-to-date, industry mortgage-banking income was running ... [Includes one data chart]
Are loan officers headed for extinction? There certainly will be much less of a market for them in the future if the new online platform, No Originating Loan Officer, being rolled out by 360 Mortgage Group, a privately-owned mortgage banking firm based in Austin, TX, takes hold across the industry. On the other hand, fewer humans in the mortgage lending mix may mean fewer opportunities for errors, cutting compliance corners or engaging in steering and other discriminatory practices that ...
Home-price depreciation was a greater driver of mortgage defaults during the financial crisis than unemployment, according to an analysis by S&P Global Ratings. The findings are counterintuitive because many borrowers continued to make mortgage payments when they experienced negative equity while the lack of employment can make it difficult to keep up with a mortgage. S&P studied loan-level data from the government-sponsored enterprises for mortgages ...
The end of a long-term decline in interest rates will trigger a resurgence of the second-lien market and alter the mortgage market in other areas as well, according to a working paper published by the Urban Institute. How much mortgage rates will rise is unclear, but the 35-year secular decline in interest rates is over, author Laurie Goodman maintained in her preliminary study, “The Impact of Higher Interest Rates on the Mortgage Market.” Goodman, co-director of UI’s Housing Finance ...
The volume of purchase mortgages being originated isn’t as strong as it could be because of the amount of home sales completed solely with cash, according to economists at Freddie Mac. The cash share of home sales is declining, but it remains well above historic levels. The economists projected that about 6.2 million homes will be sold this year. With the cash share of home sales around 20 percent, Freddie projects that $1.38 trillion in purchase mortgages will be originated this year. If the cash share was at the norm of 10 percent, an additional $172.0 billion in purchase mortgages would be originated in 2017, according to the government-sponsored enterprise. Before the financial crisis, about 10 percent of home sales were...
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