The adjustable-rate mortgage share of total originations declined in the third quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $50.0 billion of ARMs were originated in the third quarter, accounting for 11.5 percent of total originations. In the previous quarter, an estimated $55.0 billion of ARMs were originated, making up 12.4 percent of the market. ARM volume was also down from ... [Includes one data chart]
An increase in asset-based underwriting by banks prompted warnings from the Office of the Comptroller of the Currency last week. The OCC said its examiners have seen greater use of asset dissipation underwriting, a practice used to qualify borrowers using a hypothetical income stream from their asset liquidation rather than debt-to-income ratios. Banks are increasingly using asset dissipation or asset depletion as a response to “intense competition” from nonbanks, among other ...
Originations of interest-only mortgages declined by 6.6 percent on a sequential basis in the third quarter among a group of lenders surveyed by Inside Nonconforming Markets. Total first-lien mortgage originations declined by 2.2 percent in that span. Fifteen lenders originated $4.74 billion of IOs in the third quarter. Some 33 percent of the lenders managed to increase their IO production on a quarterly basis, with large gains at Citadel Servicing, PNC Mortgage and ... [Includes one data chart]
RSS