The growing popularity of private-label servicing and the way it’s offered to lenders are raising regulatory questions, underscoring the need for guidance and supervision, according to legal experts. With the most comprehensive offerings of private-label servicing, the borrower never knows the subservicer exists, and that’s the point of the arrangement, according to Craig Nazzaro, of counsel at the Atlanta-based law firm Baker Donelson. Nazzaro attributes...
In other instances, the home price agreed upon by the buyer and seller might fall within market trends, but the appraiser might not have access to data to verify the value.
With rates at the highest they’ve been in 27 months, mortgage lenders have to make sure they keep their costs as low as possible to be competitive. At the same time, they have to retain and attract the most productive loan officers, while still staying within the bounds of the loan originator compensation rule from the Consumer Financial Protection Bureau. During a webinar sponsored by Inside Mortgage Finance this week, Paul Hindman, managing director at Grid Origination Services, said loan officer recruiting is not just about the Benjamins. “In no particular order, should they decide to explore, loan officers will evaluate and compare the following when assessing the right model match: company brand and culture ([including] mission, vision and values); compensation clarity, [and] loan products and consistent rates/pricing,” he said. Also important are...
Fannie Mae and Freddie Mac will launch pilot programs to purchase personal loans tied to manufactured housing under the final duty-to-serve regulation released this week by the Federal Housing Finance Agency. The duty-to-serve requirement was mandated by Congress eight years ago but has never been implemented. The government-sponsored enterprises will devise three-year plans for serving low- and moderate income households in three underserved areas: manufactured housing, affordable housing preservation and rural housing. Like the annual affordable housing goals set for the GSEs, the duty-to-serve requirement does not include...
Appraisal-related issues cause more than one out of every 10 purchase-mortgage applications to be denied, according to CoreLogic. Below-contract appraisals comprised 11.3 percent of the first-lien purchase-loan appraisals ordered through the CoreLogic/FNC Collateral Management System, according to Yanling Mayer, director of research in CoreLogic’s office of chief economist. The CMS is a workflow and compliance platform used by many lenders, servicers and appraisal management companies. Mayer noted...
The Federal Reserve late last week reported a modest 0.6 percent increase in the volume of single-family mortgages outstanding during the third quarter of 2016, the fifth straight quarterly gain in a market finally recovering from the housing meltdown. Still, at $10.123 trillion, the supply of mortgage debt outstanding was $1.118 trillion below the level it reached at the end of 2007. Most of the growth in the third quarter came...[Includes two data tables]
Subservicing specialists ended the third quarter with an estimated $1.80 trillion of contracts on their books, an 11.8 percent sequential gain and a 22.4 percent improvement from the same period a year ago, according to exclusive survey figures compiled by Inside Mortgage Finance. At the end of September, subservicers handled 17.8 percent of the $10.12 trillion residential loan market. A year ago, the sector had a market share of 14.8 percent. Some of the growth comes...[Includes one data table]
RSS