A decline in refinance activity has prompted a number of lenders to turn to correspondent producers in an effort to boost originations. While correspondent lenders could anticipate better pricing due to the demand for their originations, firms buying the production concede that it’s not the most profitable origination channel, suggesting that pricing might not improve much. Big banks continue to dominate the correspondent channel while reducing ...
The mortgage market’s shift from a focus on refinances to purchase mortgages won’t be enough to prompt an increase in purchase-mortgage originations in 2014, according to industry economists. The Mortgage Bankers Association revised its origination projections last week, predicting that purchase-mortgage originations will decline by 4.0 percent in 2014 compared with the previous year. An estimated $680 billion in purchase mortgages ... [Includes one data chart]
Mortgage credit tightened slightly in April, according to the latest Mortgage Credit Availability Index from the Mortgage Bankers Association, a measure which analyzes underwriting trends in data from the AllRegs Market Clarity product. The index slipped from 114.0 in March to 113.8 in April, after increasing for each of the first three months of the year. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening ...
An East Coast-based warehouse executive, requesting anonymity, said he has approached his credit board about such a change, and his waiting to hear back from them.
Only about 27.7 percent of Ginnie Mae first-quarter volume were refinance loans, and the refi share of the overall market fell to an estimated 44.3 percent, Inside Mortgage Finance found.
Construction-to-permanent loans are picking up a head of steam in certain markets. “Down here [in Florida] it’s extremely hot,” said Joe Adamaitis, vice president and residential lending manager for Insignia Bank.
Banks that extend warehouse lines of credit to nonbank originators saw their commitment levels fall 39 percent in the first quarter compared to the same period a year earlier, yet another sign that the origination market was extremely weak during the first three months of 2014. On a sequential basis, commitments dropped a more benign 10.8 percent, but it’s not unusual for some firms to keep a line open, even if they’re not utilizing their power to borrow. According to Inside Mortgage Finance estimates, banks and nonbanks had $27.0 billion in warehouse commitments on their books as of March 31, compared to $31.0 billion on December 31, and $45.0 billion a year ago. One active warehouse bank had...[Includes one data chart]
It’s a buyer’s market for mortgage firms these days, and former Cole Taylor Mortgage Chief Executive Willie Newman couldn’t be in a better place: He’s teamed up with Stone Point Capital, a hedge fund that has committed several hundred million dollars to the purchase of residential lenders. “We have a lot of plans,” Newman told Inside Mortgage Finance. “We plan to be in originations, servicing, capital markets and multi-channel production.” It was...
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