Mortgage brokers grabbed a slightly bigger share of the originations market in the first quarter of 2016, according to a new Inside Mortgage Finance ranking and analysis. Mortgage brokers generated an estimated $38 billion of new home loans during the first quarter, a modest 2.7 percent increase from the previous period. Meanwhile, correspondent production declined by 0.8 percent to an estimated $122 billion and retail originations weakened by 2.2 percent. There appeared...[Includes four data tables]
Although mortgage delinquency rates are once again at pre-crash levels, servicing costs continue to rise, leading some factions of the industry to ask whether Fannie Mae and Freddie Mac should increase the standard 25 basis point fee they pay to their servicers. The issue of higher servicing compensation was raised by an individual lender during the audience Q&A at a panel featuring the top single-family executives of the two government-sponsored enterprises at last week’s secondary market conference sponsored by the Mortgage Bankers Association. Both noted that servicing has changed significantly since the housing crisis, and that the Federal Housing Finance Agency has directed them to review servicing compensation. Subsequent interviews conducted by Inside Mortgage Finance revealed...
Litigation settlements, of course, have played a role in the resurgence in profits at Fannie Mae and Freddie Mac, though the legal gravy train is just about over for those two.
Bad news for specialty servicers: Black Knight Financial Services said 58,700 foreclosures were started during April, the lowest reading in 10 years...
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