Originations that don’t meet standards for qualified mortgages have largely been held in bank portfolios in the months since the Consumer Financial Protection Bureau’s ability-to-repay rule took effect. However, nonbanks are also eyeing the products, and industry participants suggest that non-QMs will eventually be included in non-agency mortgage-backed securities. Laurence Platt, a partner at the law firm of K&L Gates, said a number of hedge funds and investment banks are ...

Some 69.9 percent of homes purchased in April were completed with non-cash financing, up from a 69.7 percent share the previous month.

Retail lending, which includes traditional loan-origination offices and consumer-direct operations, was down 60.0 percent from the first quarter of last year, slightly worse than the 58.0 percent downturn in the overall market.

But legislators denied federal funding for a new pilot program – Homeowners Armed with Knowledge – that would broaden use of housing counseling tied to FHA originations and servicing.

The privately held nonbank has carefully ratcheted up the maximum from $750,000 to $1 million and now $1.5 million.

“I don’t think it gets sold for the time being,” said one analyst speaking under the condition his name not be used. “It needs lots of restructuring yet.”

Since that story appeared, we’ve talked to a few mortgage company CEOs who have said – tongue in cheek – that just about every mortgage firm is for sale.

All three loan-production channels saw significant declines in volume during the first quarter of 2014, but retail had the biggest downturn, according to a new Inside Mortgage Finance ranking and analysis. Retail production declined 24.6 percent from the fourth quarter to an estimated $138 billion, the lowest quarterly volume since the fourth quarter of 2008. Retail lending, which includes traditional loan-origination offices and consumer-direct operations, was down 60.0 percent from the first quarter of last year, slightly worse than the 58.0 percent downturn in the overall market. However, retail is...[Includes four data charts]

The 3 percent points-and-fees cap for qualified mortgages will likely accelerate an emerging practice of lenders rolling a variety of fees into the rate sheet price as the market continues to evolve toward a no-points mortgage, according to a leading industry consultant. “There has been a shift in the market over the last five years toward zero point loans as lenders build the traditional one percent origination fee into the rate-sheet price,” said Nicole Yung, a managing director with the Stratmor Group, a mortgage banking consulting firm. “This change has been driven by a consumer preference for low up-front costs and the historically low interest rates.” However, there seems...

Seven lenders reported net losses during the first three months of 2014, but 12 of the firms showed stronger results than they had in the fourth quarter of 2013.