Third-party originator channels posted relatively large gains in production volume during the third quarter of 2016, according to a new analysis and ranking by Inside Mortgage Finance. An estimated $244.0 billion of first-lien mortgages were originated by correspondent sellers and mortgage brokers during the third quarter, up 16.2 percent from the previous period. The bigger gain was in the correspondent channel, where production jumped 16.4 percent during the third quarter, several points higher than the 13.7 percent increase in total first-lien originations. Retail remained...[Includes four data tables]
Commercial bank and savings institution holdings of non-agency ABS fell again during the third quarter of 2016, marking the 11th consecutive quarterly decline in the industry’s investment in the sector, a new Inside MBS & ABS analysis of call-report data reveals. Banks and thrifts held $128.55 billion of ABS on their balance sheets at the end of September, down 1.9 percent from the previous quarter. The industry’s aggregate ABS portfolio was off 8.8 percent from the same point in 2015. The ABS market itself shrank...[Includes two data tables]
Commercial banks and savings institutions recently wrapped up their best quarter in over a year in terms of mortgage-banking income, according to a new Inside Mortgage Trends analysis of call-report data. The industry racked up $5.18 billion in mortgage-banking income during the third quarter, a huge 44.6 percent increase over the three-month period ending in June. It was the best quarter in mortgage-banking income since the April-June cycle in 2015, when ... [Includes one data chart]
Just over one fifth – 21 percent – of homebuyers this year regret their choice of mortgage lender, according to a new survey by J.D. Power. For first-time homebuyers, that number jumps to 27 percent. “Overall satisfaction scores have increased year over year, but a high percentage of home buyers are remorseful about their mortgage lender selection,” J.D. Power said. Of those homebuyers who regret their decision, the firm found two distinct scenarios have unfolded ...
When deciding which lender to work for, high-performing loan originators put an emphasis on companies that have the infrastructure to help originate mortgages, according to a survey of LOs by Floify. The company, which provides a communication portal for lenders, borrowers and others involved in the origination process, recently surveyed LOs on recruitment and retention issues. The findings focused on LOs with at least $21.0 million in annual origination volume ...
A recent white paper from VantageScore Solutions claiming that millions of potential mortgage borrowers have been restricted from receiving loans due to “conventional” credit scoring models has prompted a strong response from officials at Fair Isaac. Joanne Gaskin, a senior director in Fair Isaac’s scores and analytics group, published a “truth squad” post on a FICO-related website addressing VantageScore’s claims. “Scoring sparse and old data may give more ...
Bank mortgage repurchase activity rose again in the third quarter of 2016, although most of the increase is tied to Bank of America clearing up old buyback issues. Commercial banks and savings institutions reported $884.4 million in single-family mortgage repurchases and indemnifications during the third quarter. That was up 10.0 percent from the previous period and marked the third consecutive quarterly increase in repurchase activity ... [Includes one data chart]
Mortgage lenders are beginning to harness the power of big data to improve the increasingly expensive and often inefficient loan origination process, according to experts speaking on a panel at the recent Mortgage Bankers Association annual convention. Loan officer productivity has declined overall and varies greatly, according to Garth Graham, senior partner at the Stratmor Group. The top 40 percent of LOs generate 78 percent of mortgage originations, according to ...
The FHA can be more flexible in insuring condominiums without increasing risk to the Mutual Mortgage Insurance Fund, according to a new analysis from the Urban Institute. The FHA proposed a rule in September that would give it more flexibility in formulating its condo rules. Specifically, FHA proposed to establish a permissible, minimum owner-occupancy range of 25 to 75 percent, while keeping the option of setting a minimum threshold within that range as ...
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