When interest rates take an unexpected dive – as they did in the first quarter – it can wreak havoc on servicing assets as banks and nonbanks try to calculate a fair market value for their residential receivables. According to interviews conducted by Inside Mortgage Finance and based on a compilation of values by Piper Jaffray, certain megabanks assigned some of the lowest values in years to their portfolios during the first quarter of this year. Bank of America, for instance, which usually ranks third among all servicers, assigned...[Includes one data table]
Researcher Tom Popik said lenders may be missing opportunities to leverage strong homebuyer contacts acquired through the mortgage preapproval process.
More loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae are carrying mortgage insurance, either private MI or coverage through government-insured programs, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. The trend toward more insured loans has been gradual over the past two years. In 2014, purchase-money loans with no mortgage insurance accounted for 39.9 percent of new MBS issued by ... [Includes one data chart]
Fannie Mae did a slightly better job than Freddie Mac in fending off the seasonal slump in new single-family mortgage business during the first quarter of 2016, according to a new analysis and ranking by Inside The GSEs. A stiff 11.6 percent decline in purchase-mortgage business was the major reason why total GSE production of single-family mortgage-backed securities fell 3.4 percent from the fourth quarter of 2015. Fannie and Freddie securitized $90.18 billion of refinance loans during the first three months of the year, a 1.8 percent uptick. Freddie’s total business was down 4.6 percent from the fourth quarter, while Fannie’s was off 2.5 percent. It was Fannie that boosted its refi production, by 3...
Three megabanks – Wells Fargo, JPMorgan Chase and Bank of America – posted modestly lower originations in the first quarter of 2016, thanks in part to seasonality as well as continuing their cautious behavior of sticking to bread-and-butter conventional lending. In their just-released earnings reports, there was no mention of production problems tied to the controversial integrated-disclosure rule known as TRID. Then again, given their size and the fact that they’re ...
New surveys of potential first-time homebuyers suggest that many are delaying purchasing a home due to affordability issues and the accrual of non-mortgage debt. “In many cases, we found today’s buyers are taking a long-term view of homeownership,” said D. Steve Boland, consumer lending executive for Bank of America. “They want to purchase a home that will meet their future needs and understand that, in some cases, that will require saving more, waiting longer and ...
The transformation of the mortgage is continuing apace, as technology vendor Cloudvirga has brought to market its new intelligent Mortgage Platform (iMP), which it bills as the industry’s “first comprehensive digital mortgage platform, effectively alleviating the pain points, cost and time associated with the mortgage process.” The new platform combines three emerging trends in technology: cloud storage and security, digitization of images to useable data, and ...
Mortgages produced through lenders’ retail channels accounted for 60.2 percent of home loans securitized by Fannie Mae and Freddie Mac during the first quarter of this year, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. The retail share was up slightly from 59.9 percent for all of last year and 59.5 percent in the fourth quarter. Sales of retail-originated loans fell 3.9 percent from the previous period, the smallest ... [Includes one data chart]
Federal and state scrutiny of lender-placed insurance has turned into a compliance nightmare for lender/servicers in recent years as legal scrutiny of industry practices intensified, resulting in regulatory actions and lawsuits, according to a new analysis by BuckleySandler. The LPI industry and its practices came under close scrutiny following the mortgage crisis and has continued ever since. It began with the filing of a host of lawsuits by the plaintiffs’ bar across the...
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