Mortgage warehouse providers ended the second quarter with $55.0 billion of commitments on their books, a 10.0 percent sequential improvement in a red-hot origination market, according to survey figures compiled by Inside Mortgage Finance. Compared to the same period a year earlier, commitment volumes were up 12.2 percent. But the real story was in lines drawn and “average outstandings,” which rose substantially. At Southwest Bank, for example, its commitment level increased...[Includes one data table]
The near-zero default rate seen on mortgages originated in recent years combined with lenders’ extensive underwriting processes provide “clear evidence” that lenders should loosen underwriting standards, according to Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center. Wells Fargo originated more than 2.10 million conventional conforming mortgages between 2011 and the end of the first quarter of 2016. Only 4,082 of them became 60+ days past due in the first 24 months after origination, according to Moody’s Investors Service. Goodman said...
Nonbank mortgage originators continued to feel the heat of scrutiny from the CFPB over the last year, new data show. The number of the bureau’s examinations of non-depository mortgage lenders jumped an eye-popping 220.0 percent as of June 30, 2016, compared with the mid-year mark in 2015, according to data provided exclusively to Inside the CFPB from the agency per a Freedom of Information Act request.Further, in each of the first two quarters of this year, the CFPB examined as many nonbank mortgage originators as it had for the entire second half of last year, the data show. On the other hand, nonbank servicers got a slight reprieve, with CFPB exams falling 66.7 percent year over year (YOY) and ...
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