Lack of Congressional funding, however, has put a damper on the initiative. And lenders generally oppose proposals where they would be charged a subsidy fee.
Despite the not-so-good news on applications, one warehouse lender suggested to IMFnews that larger lenders are suffering much more than smaller firms.
The high cost of FHA loans, due mainly to higher MI premiums and a requirement to maintain mortgage insurance for the life of the loan, has made it difficult for borrowers to obtain credit.
The price quotes can vary greatly depending on the size of the company being targeted, especially if there’s a servicing portfolio and platform that needs to be looked at.
“In recent client meetings, Stratmor heard that lender fees are now being included in the rate sheet price,” Yung said. Indications are that the 3 percent cap is causing lenders to fold the lender fees into the rate – specifically on the retail side.
Over the past few years Envoy Mortgage had a strong emphasis on purchase-money lending and in early 2013 branched out into third-party lending. Its original focus was on retail.
Here’s what the current state of mortgage banking boils down to: Can the industry survive on $1 trillion to $1.2 trillion in production a year through 2015?
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