The VA condominium-financing process can be difficult for both veteran borrowers and lenders, according to experts at a recent VA lender conference. The big issue for borrowers is finding a condo development that has VA approval or one that can obtain approval quickly enough to complete the loan process in the shortest time possible. A development that has a high number of foreclosures, a significant number of condo owners that are behind on their association dues, or pending litigation against the homeowner association is unlikely to win VA approval, experts said. Such factors could put the VA and the lender at risk. As such, securing VA approval for a development is crucial. In 2009, VA stopped accepting HUD/FHA condo project approvals in lieu of a VA project review, said Phyllis Chilton, valuation officer at VA’s Phoenix regional loan center. Condo projects that were accepted previously by ...
Issuance volumes in various MBS and ABS sectors are generally below pre-crisis levels and liquidity in the markets is adequate, according to an analysis by the Financial Industry Regulatory Authority. But the structured finance sector hasn’t flourished as the corporate bond market has in recent years, according to FINRA. The non-governmental regulator of broker-dealers based its analysis in part on data collected by its Trade Reporting and Compliance Engine, which tracks trades in a variety of asset classes. The analysis was completed by FINRA’s Office of the Chief Economist. “Market liquidity [for MBS and ABS] seems...[Includes one data table]
A Connecticut jury has found a former securities trader guilty and acquitted a second trader in an MBS fraud case brought by the Securities and Exchange Commission two years ago. A conspiracy charge against a third Nomura trader was unresolved. Although multiple charges were brought against the former traders – Michael Gramins, Ross Shapiro and Tyler Peters – only Gramins was found guilty of conspiracy, according to an analysis by Shepherd Smith Edwards & Kantas of Houston. All three defendants were...
Bank and thrift holdings of first-lien mortgages took a relatively rare decline in the first quarter of 2017 as jumbo production stalled during the period, according to a new ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held a total of $1.93 trillion of first-lien residential mortgages in portfolio as of the end of March, down 0.1 percent from December 2016. The holdings have increased relatively steadily in recent years ... [Includes one data chart]
The adjustable-rate mortgage share of total originations increased in the first quarter of 2017 as some borrowers shifted to the product with interest rates projected to increase. An estimated $42.0 billion of ARMs were originated in the first quarter of 2017, according to Inside Mortgage Finance. While production was down by 23.6 percent from the previous quarter, total first-lien originations declined by 33.6 percent during that time ... [Includes one data chart]
For most of the past decade, nonbank residential lenders have eschewed the idea of owning or being affiliated with a federally insured depository for fear of being over-regulated in an already heavily regulated business. But the tide could be turning. Movement Mortgage CEO Casey Crawford this spring bought a controlling interest in First State, a small Virginia bank. Separately, fintech lender Social Finance recently filed an application with the Utah Department of Financial Institutions to open a depository there. SoFi, which branched out from its consumer and student loan business into mortgages, also filed an application with the Federal Deposit Insurance Corp. for deposit insurance coverage. For now, both Crawford – a former professional football player – and the San Francisco-based SoFi aren’t...
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