There is a surprising number of smaller mortgage lenders who think they can comply with the Consumer Financial Protection Bureau’s pending integrated-disclosure rule with a substantial amount of manual practices and processes – as opposed to technological automation – and they may well be in for a rude awakening when the new rule kicks in. According to Rod Alba, senior regulatory counsel at the American Bankers Association, approximately one quarter of ...
Lenders are increasingly interested in outsourcing portions of the mortgage origination process, according to a new survey by the Stratmor Group. Industry analysts note that while outsourcing can help reduce costs, there are also risks, particularly for lenders considering outsourcing the entire origination process. Stratmor, a consulting firm that focuses on mortgage profitability, found that the majority of lenders are more interested in outsourcing loan production ...
Correspondent originators continued to produce significantly more purchase mortgages as a share of their total production than brokers or retail lenders, according to a new Inside Mortgage Trends analysis of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the first quarter of 2015. Some 55.9 percent of correspondent originations were purchase loans, compared to just 36.5 percent for retail production and 35.1 percent for ... [Includes one data chart]
Industry observers noted that FAQs didn’t answer some of the big questions that matter to lenders, such as quality control, student debt and pre-funding review requirements.
An estimated $95.9 billion of mortgages bigger than the traditional agency loan limit were produced during the first quarter of 2015, a new Inside Mortgage Finance analysis reveals. Jumbo production – all single-unit mortgages with loan amounts exceeding $417,000 – was up 7.9 percent from the fourth quarter. That was slightly off the pace set in overall mortgage originations, which rose 12.9 percent from the previous quarter. Conforming-jumbo production was...[Includes three data tables]
Lenders have loosened downpayment requirements on conforming purchase-mortgages as part of a shift that typically occurs when the purchase market rebounds. The move toward higher loan-to-value ratios on purchase mortgages has been gradual, but industry analysts suggest it’s part of an effort by lenders to increase volume. “As lenders need more mortgage volume, average downpayments start to drop,” said Doug Lebda, CEO of LendingTree. “More lenders are beginning to loosen their guidelines and are going after a slightly broader pool of potential borrowers.” According to the Inside Mortgage Finance MBS Database, the original LTV ratio for newly originated purchase mortgages included in mortgage-backed securities issued by the government-sponsored enterprises has...
A California superior court last week ruled that Gov. Jerry Brown, D, illegally diverted more than $331 million from a landmark mortgage settlement fund to resolve a state budget deficit. The funds represented California’s share in the historic 2012 national mortgage settlement between federal enforcement agencies and 49 state attorneys general and the nation’s five largest mortgage servicers – Wells Fargo Bank, Bank of America, JPMorgan Chase, Citigroup and Ally Financial. The banks paid...
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