Evolution and innovation are usually double-edged swords – and that’s certainly proving to be true when it comes to technology and financial services. New research from DBRS finds that banks are increasingly using technology to differentiate themselves and to enhance the customer experience. But this market upgrade comes with a cost: smaller players with less financial wherewithal are being left further behind. The first main point DBRS analysts made ...
The mortgage lending industry appears to be having a strong first quarter of the year so far, profitability wise, with gain-on-sale margins up strongly – at least until more effects kick in from the Consumer Financial Protection Bureau’s TRID integrated disclosure rule, according to a new analysis. “Our gain-on-sale index indicates margins rebounded sharply in first quarter 2016, up 22 percent quarter-over-quarter on average,” said analysts at Compass Point Research & Trading ...
Some observers say the latest rate adjustments by private mortgage insurers will not have a significant impact on FHA business nor would they compel the government agency to alter its mortgage insurance premiums or policy. Others say the pricing change could trigger a race to the bottom as risks of MIP cuts increase materially. Six private MIs have announced adjusted rates over the last couple of months inresponse to new eligibility standards set by ...
Fannie Mae and Freddie Mac customers repurchased $357.1 million of mortgages during the fourth quarter of 2015, another record low, according to a new analysis by Inside The GSEs. Seller repurchases, including buyback demands settled through indemnification, were down 17.7 percent from the third quarter, marking the fourth consecutive record low. At the same time, the inventory of unresolved buyback demands continued to decline. Only $657.2 million of loans were subject to pending or disputed repurchase requests at the end of 2015, the smallest pipeline of such cases since the GSEs began disclosing repurchase activity back in early 2012. The Dodd-Frank Act requires “asset securitizers” to file quarterly reports with the Securities and Exchange Commission...
As risks from cyber attacks on financial institutions remain a top concern, the Federal Housing Finance Agency Office of the Inspector General determined that the oversight of the Federal Home Loan Banks’ cybersecurity program is not effective.In an audit released late last month, the IG found in 14 out of the 15 Federal Home Loan Bank IT examinations performed in 2013 and 2014 that included vulnerability scanning and/or penetration testing, the division of bank regulation did not asses the design of the tests performed by contractors at the banks’ discretion.Vulnerability scanning includes a thorough examination of computers, computer systems, networks, and applications to identify security weaknesses.
Appraisals aren’t causing significant closing problems for purchase-mortgage lending, although there are issues as home prices increase, according to responses to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. “Appraisals are mostly in line with contract prices,” said Tom Popik, research director for Campbell Surveys. “However, appraisals for FHA mortgages and VA mortgages more often miss the contract price than appraisals for conventional mortgages.” Appraised home prices have tended...
Opendoor, an online real estate start-up, unveiled a new service this week that lets sellers trade-in one home for another one instead of watching it sit on the market or being forced to juggle two mortgages. The San Francisco-based company launched the program in Phoenix and Dallas with a goal to make buying and selling a home “as simple as trading in a car.” Once sellers find a new home, they go to the Opendoor website, decide on their closing date, and the company will take it from there, including dealing with the new home’s real estate agent along with the title and escrow. To simplify the transaction, the company doesn’t...
A day after the news broke that W.J. Bradley Mortgage has shut its doors, competition is heating up for some of its top loan officer and executive talent...
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