A proposal from the National Credit Union Administration to permit covered credit unions to securitize loans they have originated – but not purchased – is widely seen as insufficient by the credit union industry because of that limitation. That’s likely to prompt the regulator to favorably revise the proposal in the coming months, industry analysts say. Back in June, the NCUA issued a proposal to authorize loan securitizations by credit unions, but only for loans originated, not purchased. It also proposed permitting the creation of special purpose vehicles (SPV) to hold the assets collateralizing the securities. Additionally, the proposal lists a number of minimum requirements and limitations on residuals and retained interests. The Credit Union National Association, in its comment letter to the agency, indicated...
Some of the features of the Private Mortgage Insurance Eligibility Requirements recently put out by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency would probably increase costs and cyclicality in the mortgage and housing markets to an unnecessary degree, according to a new report by Moody’s Analytics and the Urban Institute. Study authors Mark Zandi and Cristian deRitis (Moody’s) and Jim Parrott (the Urban Institute) said the standards should succeed in ensuring that ...
Late last month, the Consumer Financial Protection Bureau announced the participants in its high-profile eClosing pilot project. The bureau chose a mix of technology vendors providing eClosing solutions and lenders that have contracted to close loans using those solutions. The vendor participants are Accenture Mortgage Cadence, DocMagic, eLynx, Pavaso, and PiersonPatterson LLP. The lenders are Blanco National Bank, Boeing Employees Credit Union, Franklin First Financial, Flagstar Bank ...
Sindeo, a San Francisco-based startup wholesale lender, launched in August with plans to “transform the borrower experience.” “Our goal is to look at every aspect of our business to create a fair, transparent and modern experience for our clients,” Ori Zohar, executive vice president of marketing at Sindeo and one of the nonbank’s founders, told Inside Mortgage Trends. …
Homeownership among young adults under age 35 has dropped substantially, particularly among prime first-time homebuyers, despite the fact that owning a house has become less costly than renting in recent years, according to a Fannie Mae analysis. Specifically, the government-sponsored enterprise found that the homeownership rate of “prime” first-time homebuyers – defined as educated, married couples in their early 30s with kids and lots of money – fell by 8.6 percent between 2006 and 2012 ...
Banks and thrifts reported an 11.0 percent decline in the volume of mortgage repurchases and indemnifications they made during the second quarter of 2014, compared to the first three months of the year. An Inside Mortgage Trends analysis of call-report data found that bank and thrift repurchases and indemnifications totaled $1.012 billion in the second quarter, the lowest level since the first quarter of 2008. Buyback volume has been ... [Includes one data chart]
Originating unsecured consumer loans can be a risky venture, but LoanDepot says it wants to drive growth. Of course, it doesn't have any public shareholders to answer to.
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