FHA lenders are anticipating long-awaited guidance from the Department of Housing and Urban Development implementing sweeping changes related to reverse-mortgage borrowers in default for not paying their taxes and insurance. But don’t be surprised if HUD issues additional guidance before the implementation date, said James Wright, an attorney with Bradley Arant Boult Cummings’ Birmingham office. First announced in April 2015, the guidance sets...
"Assuming we achieve our cost, volume and other business objectives, and the market unfolds as forecast, we expect core earnings before notable items to be breakeven to modestly profitable for 2016," said CEO Glen Messina.
Originators that fund billions of dollars each quarter use futures and options to hedge their pipelines. It’s the smaller players that may have encountered secondary-market charges.
All three mortgage-production channels saw significant declines in volume during the fourth quarter of 2015, but the retail business fared significantly better, according to a new market analysis and ranking by Inside Mortgage Finance. Correspondent production fell 25.5 percent from the third to the fourth quarter of last year, compared to the overall 15.4 percent drop in mortgage originations over that period. The correspondent channel typically yields a higher share of purchase mortgages than either retail or wholesale-broker production, so it was relatively more impacted by the decline in purchase-mortgage lending. Still, correspondent production for all of 2015 was...[Includes four data tables]
Originations of home-equity lines-of-credit are increasing along with the average size of the loans at origination. The expansion has occurred without a significant loosening of underwriting standards as combined loan-to-value ratios and other underwriting metrics for HELOCs remain much tighter in the current market compared with pre-2008 originations. An estimated $68.5 billion in home-equity loans were originated in the first three quarters of 2015, according to Inside Mortgage Finance, up 25 percent compared with the same span in 2014. The originations have been helped by increases to home prices and an improving job market. According to CoreLogic, the average size of HELOCs originated in the first three quarters of 2015 (measuring the line’s limit at origination) was...
Private MIs finished third in agency refinance loans, partly because the Fannie/Freddie program for refinancing underwater borrowers continued to slow down.
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