Although the plague of mortgage buybacks generally grew less severe during the third quarter of 2013, a new Inside Mortgage Trends analysis of repurchase disclosures by Fannie Mae and Freddie Mac shows that the industry continues to grapple with legacy years leading up to the housing market collapse. At the end of the third quarter, loans securitized by the two government-sponsored enterprises in 2007 accounted for 36.9 percent of pending and disputed buyback demands. Loans securitized ... [Includes two data charts]
Increases to the guaranty fees charged by the government-sponsored enterprises could prompt some changes for lenders. While execution with the GSEs will remain more attractive than issuing non-agency mortgage-backed securities, new loan-level pricing adjustments could shift some business to portfolio and to the FHA. The Federal Housing Finance Agency last week announced changes to GSE MBS g-fees that will amount to an average increase of approximately 11 basis points, to be implemented in March and April ...
The government-sponsored enterprises Fannie Mae and Freddie Mac are stepping up their development of a standardized dataset to support the Consumer Financial Protection Bureau’s recently finalized consolidated closure disclosure forms – a project that could represent a tipping point in the mortgage industry’s use of electronic mortgages, technology vendor representatives say. The GSEs’ common industry dataset that supports the CFPB’s form is called the Uniform Closing Dataset, and is one component of ...
The trend of deconsolidation among mortgage lenders is likely to reverse due to the advantages of large lenders, according to projections from Fannie Mae. “The recent decline in large-lender share of the primary market is temporary, and principally a result of cyclical factors that caused larger lenders to pull back from the market,” said Gerry Flood, director of strategic planning in Fannie’s economic and strategic research division. Flood cautioned that the projections don’t take ...
Sales of several bulk portfolios of mortgage servicing rights were still pending as yearend approached, with talk increasing about a busy year in the mergers and acquisitions market for 2014. As always, the driver of such talk was interest rates: Higher rates are causing MSRs to increase in value, while a slowdown in refinancing is scaring many under-capitalized nonbanks into considering the once-unthinkable: selling out or partnering with a competitor. Originations are...
Home-equity lending has quietly begun to rebound in 2013 as firmer house prices give homeowners more to borrow against and rising mortgage rates diminish the appeal of refinancing. According to revised Inside Mortgage Finance estimates, a total of $43.5 billion of home-equity lines of credit and closed-end second mortgages were originated during the first nine months of this year. That was up 30.8 percent from the same period in 2012 and it included a hefty 13.3 percent increase from the second to the third quarter of this year. The increase in HEL production so far hasn’t turned...[Includes three data charts]
Concerns about red tape from lenders have prompted an increasing share of homebuyers to use all cash to purchase a home, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Some 29.3 percent of home purchases completed in November relied solely on cash, based on a three-month moving average. That was the third monthly increase in the share of cash transactions. Tom Popik, research director of Campbell Surveys, said...
In just a few weeks, it will become clear whether the Consumer Financial Protection Bureau’s ability-to-repay rule will be the industry’s Y2K moment. But in the meantime, three top industry attorneys shared some final advice and guidance during a QM “double check” webinar sponsored by Inside Mortgage Finance last week. Joseph Reilly, a partner at BuckleySandler LLP, emphasized the critical importance of lenders documenting their compliance with the new regulation. “If a tree falls...
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