With the mortgage industry having failed to delay implementation of the CFPB’s ability-to-repay rule/qualified mortgage standard, industry representatives have shifted gears and are now pressing for numerous alterations to the bureau’s controversial rule, which took effect Jan. 10. During a hearing last week before the House Subcommittee on Financial Institutions and Consumer Credit, the Mortgage Bankers Association had a number of recommendations, including abandoning the “rebuttable presumption” level of legal...

More than $85 million in peer-to-peer mortgages were originated in 2013 via National Family Mortgage. It may double that performance this year.

Casey is responsible for all origination and operations functions at the top 10 ranked lender

It's no secret that banks like to hold jumbo mortgages in portfolio, but depositories are also major contributors to non-agency securities.

FHA endorsements fell 25.1 percent in the third quarter of 2013 from the previous quarter as interest rates roller-coastered and refinancing lost steam, according to Inside FHA Lending’s analysis of FHA data. After delayed reporting for two months, the FHA also released data showing a 27.9 percent decline in new endorsements in November from October, with lenders reporting $8.7 billion in total originations for the month. Purchase mortgages accounted for 77.1 percent of November’s FHA volume. Fixed-rate mortgages comprised 97.2 percent of total originations for the month. On a quarter-to-quarter basis, production fell to ... [2 charts]

Lenders whose fiscal years ended on Oct. 31 or Nov. 30, 2013, must complete their annual recertification by their respective deadlines, Jan. 31 and Feb. 28, 2014, or face dire consequences, the FHA warned. These lenders must complete their recertification through the current system, the Lender Assessment Sub-System (LASS), which will soon be retired and replaced with the Lender Electronic Assessment Portal (LEAP). The LASS enables lenders to submit their information, including net worth, liquidity and audited financial data, electronically. LEAP will go live in April and ...

Program eligibility is one of the top five reasons a loan can get an “unacceptable” rating in a post-endorsement technical review of a targeted sample of FHA loans. In a sample review conducted by FHA between July 1, 2013, and Sept. 30, 2013, 10 percent of the 6,692 targeted loans were defective due to program eligibility. Of that 10 percent, 76 percent were rated unacceptable by FHA. The results reflect the initial rating of each file reviewed during the quarter, which include conforming, deficient and unacceptable. An unacceptable rating may change if the lender submits mitigating documentation to FHA. But even if subsequently mitigated, the fact ...

The FHA's recently updated manual underwriting standards provide some objective criteria for qualifying more borrowers but, at the same time, some of those standards could bar certain people from obtaining an FHA mortgage, according to compliance experts. A key change in the guidelines is the lowering of the credit score threshold from 620 to 580 to allow manually underwritten borrowers – those that have received a “refer” recommendation from FHA’s Total Mortgage Scorecard or those that were not scored because they did not have credit scores – to use compensating factors in order to ...

The Department of Housing and Urban Development sold 62,062 distressed loans in 2013 through its expanded Distressed Asset Stabilization Program (DASP) to increase recoveries to FHA’s Mutual Mortgage Insurance Fund. HUD made 10 offerings of nonperforming FHA-insured loans in a series of quarterly competitive auctions last year, participated in by pre-qualified bidders, including nonprofit organizations. The defaulted single-family mortgages were provided by FHA-approved loan servicers and sold through large national pools and “neighborhood stabilization outcome” pools. The NSO pools consist of loans in ...

Subprime borrowers opted for adjustable-rate mortgages during the last boom due to economic considerations, not because of a lack of financial sophistication, according to new research published by the Federal Reserve Bank of San Francisco. The Fed researchers found that even accounting for house price appreciation, subprime borrowers were at least as sensitive to changes in loan pricing and other interest-rate related fundamentals as borrowers with credit scores of 760 and above. The findings were detailed in ...