Home Equity Conversion Mortgage lenders ended 2017 on a positive note, thanks to a relatively strong fourth quarter, according to an analysis of FHA data. Total reverse mortgage originations rose 3.0 percent from the third quarter to end the year with $18.4 billion in overall HECM production. This was up 23.2 percent year-over-year. Purchase HECMs accounted for 76.2 percent of reverse mortgage originations in 2017. Adjustable-rate HECMs comprised 89.3 percent of loans made. Meanwhile, HECM mortgage-backed securities issuance totaled $2.25 billion in the fourth quarter, buoyed by $1.35 billion of HMBS issued in December, Ginnie Mae data show. The top five HMBS issuers accounted for $5.72 billion or 31.1 percent of all HMBS issued in 2017. American Advisors Group remained the dominant HECM lender in 2017, producing $2.8 billion over the 12-month period, which represented a ... [ Chart ]

Consumers who take part in homebuyer education and counseling classes are more satisfied with the mortgage process.

The potential end of publication of the London Inter-Bank Offered Rate hasn’t yet prompted a significant shift by lenders. Many new originations of adjustable-rate mortgages continue to be linked to LIBOR as industry participants determine how to respond to the potential demise of the index.

"If mortgage rates doubled overnight, our model indicates a decline of just 300,000 sales, a mere 5 percent decrease,” said Mark Fleming, chief economist at First American.

The decline in mortgage applications was driven by applications for refinances, as requests for purchase mortgages increased slightly.

The 4,710 small mortgage lenders wouldn’t have to report new data points sought by the Consumer Financial Protection Bureau for originations in 2018 and beyond, according to an analysis by Inside the CFPB.

“Borrowers continue to move away from applying for loans fully in-person, as they look for a process combining both high-tech and high-touch,” according to Ellie Mae.

An increasing number of areas moved from “sustainable” home price appreciation to “overheated” in 2017, according to Fitch.

The IRS recently formed a working group comprised of industry participants to address problems with the Income Verification Express Service, according to the Mortgage Bankers Association.

The Senate voted 67-31 last week to pass the Economic Growth, Regulatory Relief, and Consumer Protection Act, S. 2155, moving the deregulation debate to the House, which will look for more aggressive changes to roll back the Dodd-Frank Act. House Financial Services Committee Chairman Jeb Hensarling, R-TX, said the House would not pass the bill without additional provisions that would further relax regulations introduced after the 2008 financial crisis ...