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?
Nonprime lender Citadel Loan Servicing increased its maximum loan size this week to $1.5 million from $1.0 million. Dan Perl, Citadel’s CEO, said the lender is on track to close $14 million in originations in May and $15 million in June. He added that Citadel is close to entering the non-agency mortgage-backed security market. Walter Investment Management revived Ditech Mortgage and the lender will offer jumbos, among other products ... [Includes four briefs]
Mortgage industry stakeholders are wary of a new FHA proposal to offer mortgage insurance premium reductions to borrowers who agree to complete housing counseling before and after they obtain an FHA-insured mortgage loan. The FHA is seeking comment on a proposed four-year, two-phase housing counseling pilot, “HAWK for New Homebuyers.” HAWK is an acronym for Homeowners Armed With Knowledge, and includes several initiatives aimed at broadening the use of counseling in FHA origination and servicing. HAWK is a component of the “Blueprint for Access,” which FHA announced on May 13 as part of the agency’s efforts to expand access to credit for underserved borrowers. The HAWK pilot would provide FHA pricing incentives to first-time homebuyers who participate in ...
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