Although more than half of the mortgage loans being produced in the U.S. get passed through the top three loan aggregators in the industry, thousands of smaller depository institutions and mortgage brokers continue to find a foothold in the industry. A new Inside Mortgage Finance ranking of the top 100 mortgage originators reveals scores of lenders that produced less than $1 billion in new originations during the first quarter. Some 1,635 different mortgagees were identified in FHA lending data for the first quarter, and more than 550 companies delivered ... [includes two data charts]
Mortgage banking income was hit hard by rising expenses and declining production during the first quarter of this year, with more companies failing to generate a net profit from their business, according the Mortgage Bankers Association’s most recent performance report. The average firm participating in the MBA survey reported $617,000 in pretax income during the first quarter, down 60 percent from the fourth quarter’s average $1.56 million. Only 63 percent of lenders reported a net profit for the first quarter, down from 84 percent in the final three months of 2010. Mortgage bankers reported ...
There is a huge disconnect between some members of Congress and the reality of the private market, that broad investor appetite for non-agency mortgage-backed securities is unlikely to rebound anytime soon, according to panelists at the American Securitization Forum annual conference. “Once you figure out how to get the government sector out of the market, [the belief is that] the private sector will step in and pick up all of that slack, and therefore they will do...
A broad coalition of industry trade groups, consumer advocates and community groups urged federal regulators to open the door to qualified residential mortgage status for loans with low downpayments, but offered only the mildest support for private mortgage insurance. The Coalition for Sensible Housing Policy reiterated criticism of the QRM standard drafted by federal regulators as part of the securitization risk-retention proposed rule earlier this year that has been made...
The Department of Housing and Urban Development’s Office of the Inspector General continued to find weaknesses during a second audit of FHA’s Title II single-family lender renewal process despite steps already taken by the agency to strengthen its controls. In a new report released last week, HUD’s internal watchdog recommended additional improvements, some of which were rejected...
Federal banking regulators have the unenviable task of harmonizing two mortgage disclosure documents – one under the Truth in Lending Act and one under the Real Estate Settlement Procedures Act – for consumers who generally won’t read them and don’t fully understand them when they do. And mortgage lenders have the same kinds of stubborn obstacles to overcome if they’re going to be able to more effectively design and successfully market products consumers will respond…
There’s probably not “a secret sauce” that banks can use to juice up their Community Reinvestment Act rating, but a deliberate, cohesive strategy and “complete buy in” from CEO to receptionist will go a long way, bank and government officials said recently...
The Department of Housing and Urban Development is in conciliation talks with 22 FHA-approved mortgage lenders about “credit overlay” practices that resulted in a denial of credit to FHA-qualified borrowers. Agreements between HUD and the lenders may be announced within the next few weeks, said a HUD spokesperson, who declined to comment further because the issue is still in mediation. Discussion between HUD and the lenders have been ongoing since the National Community Reinvestment Coalition, an association of more than 600 community-based organizations, filed individual complaints against the 22 lenders late last year for alleged ...
A proposed rule that would allow lenders in the federal Farm Credit System to participate in the FHA mortgage insurance programs is being closely scrutinized at the Department of Housing and Urban Development. The measure is one of several regulatory actions taken by HUD in response to President Obama’s directive in January calling for a government-wide review of rules and regulations. The review is aimed at weeding out rules that are outdated, unnecessary, excessively burdensome, and redundant or in conflict with other federal rules. Twenty rules, including the proposed FHA approval for FCS lenders, are now being streamlined or rewritten to ease the regulatory burdens of small businesses and spur economic growth. The proposed changes build ...
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