Loan originators these days not only are looking over their shoulders, they’re also getting skittish about what lies ahead of them. Some of their backward-facing anxiety has to do with this summer’s CFPB suit against the nonbank lender, Castle & Cooke of Utah, and two of its top executives for allegedly paying bonuses to loan officers who steered consumers into mortgages with higher rates.During a recent special webinar sponsored by Inside Mortgage Finance, an affiliated newsletter, Jay Laifman, counsel with the Buckley...
Starting in 2014, the FHLB will purchase conventional, conforming fixed-rate mortgages and FHA/VA products from its members, but some of the product will be funneled to Fannie Mae via the MPF Xtra program.
Certain members of the U.S. Senate want to see some type of analysis from FHFA on what impact lower loan limits will have on the housing and mortgage markets.
While the Consumer Financial Protection Bureau has encouraged originations of non-qualified mortgages, industry analysts predict that such originations will begin slowly. Even before the QM and risk-retention requirements are implemented for non-qualified residential mortgages, few lenders have been willing to offer subprime mortgages. Originations of subprime mortgages will likely be non-QMs due to the higher interestrates required for subprime borrowers. According to a survey completed by Zillow, borrowers with credit scores under 620 who requested a quote for a 30-year fixed-rate mortgage were...
A year and a half after the $25 billion national servicing settlement took effect, attorneys general and the settlement’s monitor turned up the heat this week on the five banks participating in the settlement. Wells Fargo faces a new lawsuit, Bank of America settled similar claims, and all five servicers face additional testing standards and procedures, with BofA and Wells agreeing to even more stringent process improvements. New York Attorney General Eric Schneiderman, D, announced a lawsuit against Wells. He said consumer advocates have documented hundreds of violations to the settlement by Wells, including delays, lost paperwork and wrongful denials. BofA avoided...
Citadel Loan Servicing, which specializes in non-agency loans, has increased its maximum loan-to-value ratio to 80 percent from 75 percent. The change, which came about a week ago, is for fully documented loans.The privately held nonbank made the switch in response to borrower demand. “The phones are ringing like a son-of-a-gun,” said Citadel CEO Dan Perl. The Irvine, CA-based firm originates...
The Department of Housing and Urban Development this week proposed its own “qualified mortgage” rule for FHA-insured mortgage loans that builds off the existing QM rule finalized by the Consumer Financial Protection Bureau earlier this year. The proposed rule aligns with the ability-to-repay criteria in the Truth in Lending Act as required by the Dodd-Frank Act. Once the proposal becomes final and takes effect, it would replace the CFPB’s rule for FHA loans. The DFA has set a seven-year timetable for FHA, the VA and the Rural Housing Service to promulgate their own QM rules. HUD’s proposed QM rule would ...
Overall FHA production saw little change in the second quarter of 2013 from the previous quarter, with the fixed-rate, 30-year product, refinances and jumbos weakening somewhat during the period, according to Inside FHA Lending’s analysis of FHA data. FHA endorsements dropped 0.7 percent to $63.2 billion from $63.7 billion on a quarter-to-quarter basis. It is also the second time the numbers have slipped since the fourth quarter, when new endorsements totaled $64.0 billion. During the quarter, the top FHA lenders saw their total production drop by ... [2 charts]
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