With credit standards loosening somewhat, some commercial banks are listening to pitches from “private-money” lenders that are searching for warehouse lines, but so far it’s been a case of more smoke than fire. During the subprime meltdown of 2007, banks and Wall Street firms exited the nonprime warehouse sector and have yet to return. According to warehouse consultant Michele Perrin, several banks are willing to make warehouse lines on private-money mortgages, but only up to $5 million per deal ...
From the start of the Home Affordable Modification Program through the end of 2012, mortgages serviced for the government-sponsored enterprises accounted for the largest share of HAMP Activity. However, beginning this year, mortgages in non-agency mortgage-backed securities and loans in portfolio have overtaken GSE mortgages in terms of total HAMP activity. As of the end of the second quarter of 2013, non-agency mortgages accounted for 51.2 percent of the 1.21 million ... [Includes one data chart]
Servicers last week rejected offers from Richmond, CA to purchase 624 mortgages located in the city. Richmond now plans to seize the mortgages via eminent domain but has yet to make the move and faces significant opposition from mortgage industry participants. The five servicers participating in the $25 billion national servicing settlement have provided borrowers with $51.33 billion in gross relief through the end of the second quarter of 2013, according to the settlement’s monitor ... [Includes five briefs]
FHA lenders have gradually stretched to originate loans for borrowers with more modest credit scores in recent quarters, although these borrowers typically are better positioned to keep up with their payments, according to an Inside FHA Lending analysis of data released by the agency. The average credit score for single-family loans endorsed in the second quarter of 2013 was 693 – the lowest such average in nearly four years. This is partly the result of a shift toward more purchase-money mortgages, which generally have ... [1 chart]
Parties to trustee lawsuits challenging a city’s use of eminent domain to deal with foreclosures are gearing up for a face-off at an injunction hearing Sept. 13 in federal district court in San Francisco. The city of Richmond, CA, the defendant in the lawsuit, has suffered setbacks in the last few days and has yet to make good on its threat to initiate eminent domain proceedings after investor trustees rejected its offer to purchase distressed mortgages for restructuring. Wells Fargo and Deutsche Bank, acting as trustees for a group of ...
The reverse mortgage lending industry is working with the Department of Housing and Urban Development to implement two policy changes that would strengthen the FHA’s Home Equity Conversion Mortgage program. One policy change involves the development of a new HECM option that combines features of the fixed-rate, full-draw HECM Standard and the HECM Saver, according to Peter Bell, president and chief executive officer of the National Reverse Mortgage Lenders Association. HUD eliminated the standard 30-year, fixed-rate HECM in April because ...
It was the biggest volume of new lending above the conforming loan limit since the second quarter of 2007 – before “emergency” conforming loan limits were authorized by Congress.
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