Freddie Mac is preparing to issue a $639.91 million Whole Loan Securities transaction backed by conforming-jumbo mortgages, according to Moody’s Investors Service. Some 65.9 percent of the mortgages in the transaction were originated by Caliber Home Loans, followed by Wells Fargo Bank with a 19.1 percent share and Quicken Loans with a 10.0 percent share. JPMorgan Chase recently opted to include conforming-jumbo mortgages in a non-agency ... [Includes five briefs]
Solicitation of VA purchase loans for streamline refinancing within weeks of closing is apparently continuing despite Ginnie Mae’s efforts to stop the harmful practice. The Mortgage Bankers Association has expressed concern that guidance on pooling eligibility for streamlined refinance loans, which Ginnie issued in October last year, was far less effective than expected. Although the aggressive refinancing trend has slowed due to Ginnie’s action, there are still “pockets of that activity” being reported, said Pete Mills, MBA senior vice president. Refinancing a veteran’s purchase mortgage less than six months after its origination is not in the vet’s best interest because it strips equity from the house and results in higher financing costs, said Mills. While the rapid refi trend involves only a small number of loans in Ginnie mortgage-backed securities pools, investors do not get the full benefit of their investment because of early prepayment. Mills said there are a handful of lenders and brokers that ...
A Georgia appellate court recently handed Wells Fargo Bank a provisional win in a lawsuit in which a VA borrower alleged breach of contract and wrongful foreclosure. In Wells Fargo Bank, N.A., d/b/a Wells Fargo Home Mortgage v. LaTouche, the court ruled that Wells did not breach its duty to the borrower to comply with VA foreclosure regulations. The court concluded that the trial court had erred in denying Wells Fargo’s motion for summary judgment as to the defendant’s claims for wrongful foreclosure that hinged upon the same VA regulations. The reversal stemmed from Wells Fargo’s request for an interlocutory review of the trial court’s denial of its motion for summary judgment on defendant Michael LaTouche’s claims for breach of contract, wrongful foreclosure and “surprise. An interlocutory review is undertaken when a question of law must be answered by an appellate court before ...
Security National Mortgage Co. of Salt Lake City has paid $4.25 million to the Department of Housing and Urban Development to settle allegations of failing to comply with FHA loan requirements. Security National, a retail lender, has been an FHA-approved direct endorsement lender since October 1993, the year it was founded. The settlement resolves a joint civil investigation by the HUD Office of the Inspector General, Department of Justice and the U.S. Attorney’s Office for the District of New Jersey into Security National’s FHA origination and underwriting practices in connection with 100 FHA-insured loans. As part of the settlement, the lender “agreed it engaged in certain conduct in connection with its origination and underwriting of the loans.” The HUD OIG provided no details about the investigation. The OIG said the loans that were certified as compliant would not have been insured had ...
The three major credit bureaus plan to exclude two critical pieces of negative information from their reports, which may make it easier for some borrowers to qualify for a mortgage. Many tax liens and civil judgments, which can weigh down a credit score, will be removed. As part of a multi-year plan to alleviate incorrect information, on July 1, Equifax, Experian and Transunion will apply new public record standards when it comes to collecting and the timely updating of civil judgments and tax liens, the Consumer Data Industry Association said this week. The new standard will apply...
A request from two consumers for changes to the Telephone Consumer Protection Act would interfere with mortgage origination and servicing operations, according to the Consumer Mortgage Coalition. The CMC submitted a comment letter to the Federal Communications Commission late last week in response to a petition submitted to the FCC in January. The petition called for the FCC to re-write parts of the TCPA and require express consent to be in writing from consumers regarding certain communications from companies, including mortgage lenders and servicers. The petition would define express consent as not being provided even when a person to be called knowingly provides a phone number to a lender on a loan application. Anne Canfield, executive director of the CMC, said...
Fannie Mae, Freddie Mac and Ginnie Mae securitized $183.69 billion of newly originated mortgages produced through the wholesale-broker channel last year, a new Inside Mortgage Finance analysis reveals. That was up 22.2 percent from 2015 volume, the biggest increase among the three mortgage-production channels. The biggest increase for broker originations was in Fannie mortgage-backed securities, rising 31.5 percent from 2015, accounting for 12.2 percent of the government-sponsored enterprise’s MBS issuance last year. The dataset includes only purchase and refinance loans that were securitized within six months of origination, and it excludes mortgages with no channel identification. Brokers earned...[Includes two data tables]
The banking industry continued to backpedal away from the business of servicing home mortgages for other investors during 2016, according to an exclusive new Inside Mortgage Trends analysis of call-report data....
The Mortgage Bankers Association this week urged Congress to support two bills that would make major changes to the National Flood Insurance Program, including clarification that would make private flood insurance acceptable to mortgage lenders....
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