Ginnie Mae will soon introduce the third prong of a strategy to improve its oversight of participants in its mortgage-backed securities program – a performance scorecard for issuers – and monitoring of its risk. Essentially a “scorecard,” the Issuer Operational Performance Profile (IOPP) will enable issuers to better understand and comply with Ginnie Mae’s expectations. It also provides a way for issuers to measure and improve their performance and compare it to the performance of their peers. Final testing and training for IOPP began this winter, with deployment expected “in early 2015,” the agency said. Issuers will be scored monthly based on a series of metrics. Each issuer will be rated against its peers by applying a weighting algorithm and, in some cases, adjusting for certain control factors. Each issuer will receive two scores: one for operational management and ...
The Consumer Financial Protection Bureau this week countered mortgage-industry criticism about its recently launched interest-rate checker tool. “The rate checker is an educational tool and is not a substitute for shopping,” a spokesman for the bureau told Inside Mortgage Finance. “One of the findings of our survey was that consumers who said they were very familiar with available interest rates were almost twice as likely to shop, compared to those who were unfamiliar.” Further, before consumers make a final decision about a loan, they should compare...
Investment banking firms that arrange subordinated debt offerings for mortgage originators are expecting a strong year in 2015, thanks in part to the dismal outlook for initial public offerings. “Sub debt is a good way to grow your business without it being dilutive to your company,” said Bill Dallas, CEO and founder of Skyline Lending, a lender that recently completed a $20 million deal with Ellington Financial, a publicly traded mortgage real estate investment trust. “It allows...
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