Fannie Mae this week, in partnership with “fintech” lender SoFi, rolled out a new cash-out refinance mortgage aimed at borrowers who want to tap home equity to pay down their college loans. According to interviews with Fannie officials, the rollout is driven by cutting guaranty fees that usually accompany Fannie Mae cash-out mortgages. Fannie’s average g-fee on new business was...
Jumbo lending declined in the third quarter of 2016 on a quarterly basis at some mid-sized banks, according to an analysis by Inside Nonconforming Markets. Officials at the banks suggest that the market for jumbo mortgages is still relatively strong, however, with some showing increased pipelines for originations. First Republic Bank had $2.81 billion in total mortgage originations in the third quarter of 2016, down 4.4 percent from the previous quarter. Most of the bank’s production ...
The Consumer Financial Protection Bureau recently forced “one or more lenders” to take corrective actions regarding income-verification practices for non-qualified mortgages. The CFPB said the lenders weren’t verifying borrowers’ income properly under the ability-to-repay rule. The CFPB found that some lenders offered non-QMs that allowed for “alternative income documentation” for salaried borrowers. The CFPB said the products offered by the lenders relied primarily on the assets of ...
Proposed changes to the FHA’s condominium approval rules would add approximately 7,000 condo units to the agency’s portfolio and reduce certification costs by $1 million annually, according to a Department of Housing and Urban Development analysis of the proposal’s economic impact. The boost in the agency’s condo originations would result mainly from a proposal to reinstate the “spot” loan process or “single unit approval,” which FHA eliminated in February 2010. The proposed rule would allow...
The U.S. Department of Agriculture’s single-family guaranteed housing program provided $16.14 billion in guarantees to 116,684 rural housing loans during fiscal 2016, down $2.27 billion from FY 2015, according to the Housing Assistance Council (HAC). For the Section 502 direct guarantee loan program, lenders originated approximately $958.3 million in loans in FY 2016, about $58.4 million more than the previous year. Data compiled by HAC, a national nonprofit that helps build homes and communities in rural areas of the country, show...
Bank of America – the nation’s third largest residential originator – this week gave its mortgage loan officers an edict: start taking applications for auto loans as well. Going forward, mortgage loan officers will be known simply as “loan officers.” A BofA spokesman confirmed the changes to Inside Mortgage Finance, but cautioned that LOs will not be taking applications for checking accounts and credit cards, though referrals can be made to other divisions of the bank. BofA watchers, as well as the bank’s competitors, were scratching...
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