The FHFA IG audit estimates that some 9.5 percent of claims for pre-foreclosure property inspections in 2011 and 2012 resulted in $5 million of overpayments by Fannie Mae.
It may be time for the mortgage industry to take a chill-pill: applications are on the rise again, rates have stabilized and some firms are actually hiring loan officers.
On a sequential basis, the origination results look slightly better: a 38 percent decline compared to the third quarter of 2013 for Wells and a 42 percent downdraft for JPM. Both have laid off thousands of mortgage workers over the few quarters.
As expected, the Mortgage Bankers Association this week lowered its 2014 origination forecast to $1.12 trillion, a $57 billion decrease from its previous estimate. Word of the reduction was making the rounds last week.
When it comes to the new QM rule lenders are operating from a position of fear. You can bet that mortgage attorneys in the Washington DC area have racked up the billable hours, holding their clients’ hands and supplying legal advice as the clock strikes midnight.
Over the past year, home values – including distressed sales – have risen by almost 12 percent, which can only mean good things for sellers of nonperforming mortgages. Investors and auction companies that play in the non-performing loan space are expecting a banner year for sales, but also are quick to caution that every real estate (and loan) market is different. “We auctioned off roughly $11 billion in NPLs in 2013,” said J. Kingsley Greenland, president and CEO of The Debt Exchange, which operates ...
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