A Minnesota state court has rendered a judgment that could substantially limit the amount of damages Residential Funding Co. and its successor-in-interest, the ResCap Liquidating Trust, could recover if it were ever to prevail on its claims in any given lawsuit against correspondent lenders, according to industry attorneys. On Feb. 1, the District Court of Hennepin County held that RFC and ResCap would not be able to pursue loan-by-loan damages associated with a repurchase claim and, thus, could not use a repurchase price “formula” to establish damages, said Philip Stein, a partner with Bilzin Sumberg Baena Price & Axelrod, in an analysis. The decision favored...
As interest rates continue to inch upward and refinance activity drops, it stands to reason that more residential lenders will move to cut staff, if they haven’t already. But so far, there have be no major layoffs – at least none that have been registered. But that doesn’t mean industry executives aren’t thinking about it. According to interviews conducted by Inside Mortgage Trends over the past month, it’s a mixed bag when it comes to hiring. Non-agency/nonprime lenders such as ...
The homeownership rate fell for the 12th consecutive year in 2016, hitting levels last seen 50 years ago. While industry analysts expect that the homeownership rate will stop declining in the coming years, growth will likely be constrained. The annual homeownership rate in 2016 was 63.4 percent, according to the U.S. Census Bureau. That was down from a rate of 63.7 percent the previous year and from a peak of 69.0 percent in 2004. Frank Nothaft, chief economist at CoreLogic ...
The Angel Oak family of mortgage lenders finished 2016 with roughly $700 million of nonprime/non-QM originations, according to officials at the company.
The relatively strong mortgage origination volume late in 2016 propped up production levels in all three major channels, according to a new Inside Mortgage Finance ranking and analysis. Mortgage brokers saw the biggest decline in volume during the fourth quarter, as production slipped 6.7 percent from the previous three-month cycle to an estimated $56.0 billion. But even with the late-year decline, the wholesale-broker market had...[Includes four data tables]
Warehouse providers ended 2016 with roughly $62.0 billion of commitments on their books, a 21.6 percent improvement from the same period a year earlier, according to new survey figures compiled by Inside Mortgage Finance. For the most part, warehouse finance continued to be a healthy business for the megabanks and regional banks that play in the sector – especially with nonbank originators stealing market share away from many of the institutions they’re receiving lines of credit from. Few warehouse managers interviewed by this publication cited...[Includes one data table]
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