Officials at Luther Burbank Savings see promise in the types of jumbo mortgages that many larger banks aren’t willing to originate in significant numbers: non-qualified mortgages. Jason Pendergist, president of consumer and commercial banking at Luther Burbank, said there’s a “massive opportunity” in non-QM jumbo mortgages. He said Luther Burbank focuses its originations on prime jumbo borrowers and first-time homeowners. Big banks have been willing to offer ...
The new nonprime mortgage-backed securities from Angel Oak Capital Advisors and Deephaven Mortgage included a number of mortgages with compliance issues relating to the TILA-RESPA Integrated Disclosure rule, according to offering documents obtained by Inside Nonconforming Markets. Part of the compliance issues stem from the ongoing uncertainty regarding cures for minor errors. While the Consumer Financial Protection Bureau issued a proposed rule ...
A final rule issued by the Consumer Financial Protection Bureau regarding loss mitigation and other servicing practices will be positive for the servicing of non-agency mortgages, according to Moody’s Investors Service. The rating service said the rule will help standardize and improve servicing practices by increasing automation and clarifying ambiguities in the interpretation of regulatory requirements. Most of the provisions in the new rule will take effect in a year ...
Ocwen Financial agreed to a consent order with the Washington State Department of Financial Institutions this week, which included a $900,000 fine. The consent order related to Ocwen’s use of offshore unlicensed affiliate companies to service mortgages on properties in Washington state. Going forward, Ocwen agreed to service Washington-based mortgages only through licensed entities and the state will not license foreign entities ... [Includes three briefs]
FHA saw a modest rise in originations midway through 2016 compared to the same period last year, but VA did a lot better with a double-digit increase in loan production, according to an analysis of Ginnie Mae data. Lenders delivered $123.0 billion of FHA-insured loans to Ginnie pools during the first half of 2016, up 8.4 percent from the previous year. FHA’s midyear production was driven by a surge in purchase-mortgage lending in the second quarter, which also pushed volume higher for VA as well as conventional-conforming mortgages. Government-backed lending rose 32.3 percent from the first quarter to approximately $131.0 billion in second-quarter originations, according to Inside Mortgage Finance, an affiliate publication of Inside FHA/VA Lending. It was the highest three-month total for government-insured lending on record, although private mortgage insurance did more business in the ... [2 charts]
The nation’s subservicers increased their base of contracts to $1.615 trillion in the second quarter, a modest 1.6 percent gain from the prior period, but a handsome 17.0 percent improvement from the same period a year earlier, according to survey figures compiled by Inside Mortgage Finance. Overall, these third-party processing vendors – who split the monthly fee with the actual owner of the servicing strip – control 15.9 percent of all residential mortgage debt in the nation. A year ago the reading was 14.0 percent. And it’s...[Includes one data table]
Rushmore Loan Management Services, Irvine, CA – a subservicing specialist – plans to enter the origination market early next month, a rarity for firms whose forte is processing loans for others. Company CEO Terry Smith told Inside Mortgage Finance that the nonbank’s direct-to-consumer arm is scheduled to begin funding loans on Sept. 1. “Our focus will be on originating loans – and servicing those loans,” Smith said. He also noted...
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