Don’t tell Bernie Sanders this, but the upper class appeared to suffer less than other folks during the fourth-quarter decline in mortgage production, according to a new Inside Mortgage Finance ranking and analysis. Mortgage lenders produced an estimated $78 billion of big-ticket home loans to, hopefully, well-to-do borrowers during the final three months of last year. That was down 8.2 percent from the third quarter, a little over half the rate of decline in total mortgage originations during the period. For the full year, jumbo mortgages accounted...[Includes two data tables]
The Blackstone Group this week continued its expanding reach into the mortgage industry, agreeing to buy – through an affiliate – Interactive Mortgage Advisors, Denver, one of the busiest sellers of mortgage servicing rights in the nation. No purchase price was revealed. IMA is being sold through an “asset” transfer. Its trading desk affiliate, Spurs Capital, is not part of the transaction, though the two firms will maintain a working relationship. In the fourth quarter, IMA brokered...
While home price gains across the U.S. are fairly sustainable, some metropolitan areas where jumbo loan underwriting standards are considered relatively loose may be on the cusp of a potential bubble, according to Fitch Ratings. The San Francisco market, where home prices climbed to record levels in the third quarter of 2015, now looks like it did during the dot-com boom of the late 90’s, Fitch said. The firm’s recent RMBS Sustainable Home Price Report noted that homes in the Bay Area have climbed 62 percent above their post-recession low in early 2012 and are up 10 percent in the past year. At current levels, the Bay Area market is...
In general, the OCC doesn't like the idea of banks funding loans with LTV ratios above 90 percent unless the mortgage has appropriate credit support...
During the subprime boom, HSBC owned Household Finance, a once-top ranked subprime lender and servicer that was later cited for lending and servicing violations.
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