Social Finance Inc.’s recent decision to stop using FICO scores when evaluating an applicant’s ability to repay a mortgage suggests that alternatives to the traditional credit-scoring model are catching hold. On Jan. 12, 2016, SoFi, a San Francisco-based online nonbank lender, announced it is no longer going to use FICO scores, which for years have been the basis for the origination of trillions of dollars in mortgage and consumer loans in the U.S. SoFi will still take into account ...
Correspondent originators and mortgage brokers continued to churn out relatively more purchase mortgages than retail lenders during the fourth quarter of 2015, according to a new Inside Mortgage Trends analysis of agency loan-level data. Some 34.6 percent of single-family loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the final three months of last year were originated by correspondent lenders. And 69.1 percent of those loans ... [Includes one data chart]
With residential production falling by as much as 20 percent in the fourth quarter, a handful of lenders recently have either pulled out of the retail market entirely or pared back their traditional branch networks. Included in the club of retail quitters are such firms as Ditech Financial – ranked 13th overall in fundings – and Stonegate Mortgage, which began its pullback in November. Also heading for the retail exit is BankUnited, Miami Lakes, FL. All three are...
In JPM’s case, the extended cycle times caused by TRID did not affect the company’s financial results due to how the bank recognizes revenue. Most mortgage firms recognize revenue upon rate lock...
Earnings season has begun, and among the biggest financial institutions and mortgage lenders that have reported thus far, there’s been little evidence of damage to the bottom line as a result of the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. At top-ranked Wells Fargo, total loan production for the fourth quarter was $47 billion, versus $55 billion in the third quarter, and $44 billion in the fourth quarter of 2014, something Chairman and CEO John Stumpf attributed to seasonality as well as TRID. During an earnings-related conference call with investors last week, Stumpf was asked...
Although the issues cited by lenders are not FHA issues per se, some firms are concerned that TRID-related uncertainties may cause problems for their FHA business...
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