The transition from a market hot with refinances to a more traditional purchase market has made the industry ripe for new and old mortgage fraud schemes, according to CoreLogic. The company’s National Fraud Risk Index reached 133 in the second quarter, a slight uptick from the first quarter, but it represents the highest it’s been since the index was introduced in 2010. That number was 122 in the fourth quarter of last year. With all of the moving parts and players involved in a purchase transaction versus a refinance, CoreLogic said, there are...
Investors in certain residential MBS transactions backed by defaulted mortgages in the run-up to the financial crisis are a step closer to being made whole, more than four years after the Securities and Exchange Commission announced a settlement with JPMorgan Securities, Bear Stearns and some affiliates over allegations they misled investors and mishandled bulk settlement proceeds. The case involved is Securities and Exchange Commission v. J. P. Morgan Securities LLC, EMC Mortgage, LLC, Bear Stearns Asset Backed Securities I, LLC, Structured Asset Mortgage Investments II, Inc., SACO I, Inc., and J. P. Morgan Acceptance Corporation I, Case No. 12-CV-1862 (RLW). In November 2012, the SEC filed...
This year, nonprime production across the U.S. might top $3 billion to $4 billion at best. At its peak last decade, it was a $1 trillion a year business. That’s not a misprint…
Mortgage lenders that sell loans to Fannie Mae and Freddie Mac opened the credit box slightly for refinance borrowers during the second quarter, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. Some 24.8 percent of refinance loans securitized by the two government-sponsored enterprises during the second quarter had credit scores below 700. That was up from 22.6 percent in the previous period and just ... [Includes two data charts]
The second quarter of 2017 was not easy for publicly held nonbank mortgage lenders and servicers, but the beleaguered sector fared better than it did a year ago. A new Inside Mortgage Trends analysis of second-quarter earnings reports found the eight companies in the roundup managed to generate just $24.37 million in mortgage-banking income. That was down 80.1 percent from the group’s first-quarter earnings. One public nonbank, Stonegate Mortgage ... [Includes one data chart]
The third quarter of any given year is usually among the strongest in terms of residential loan originations, but new employment figures from the Bureau of Labor Statistics suggest that many mortgage lenders are being careful about hiring these days. Loan brokers on the other hand appear to a bit more liberal. But interviews conducted by Inside Mortgage Trends over the past week suggest that plenty of nonbanks are continuing to search for help, especially firms that ...
Low-downpayment lending is the highest it’s been in almost seven years as the purchase market keeps growing, according to new data from Black Knight Financial Services. “Over the past 12 months, approximately 1.5 million borrowers have purchased homes using less than 10-percent downpayments,” according to Ben Graboske, executive vice president of Black Knight Data & Analytics. “The increase is primarily a function of the overall growth in purchase lending ...
Provident Savings Bank, headquartered in California, recently laid off staff in its mortgage unit due to a decline in refinance volume. “During the past six months, we’ve reduced capacity to more closely align to the current opportunities in the market, which reflect an uptick in purchase-money activity, but a significant decline in refinance activity,” said Craig Blunden, chairman and CEO of Provident Financial Holdings, the holding company of the bank. He said the lender reduced its ...
The private mortgage insurance industry is calling for a level playing field between the government-sponsored enterprises and FHA and VA as the Consumer Financial Protection Bureau begins its assessment of the ability-to-repay rule. In comments to the CFPB, U.S. Mortgage Insurers urged the bureau to determine whether potential arbitrage in QM standards for Fannie Mae and Freddie Mac and those for FHA and VA have had any negative effect on consumers ...
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