The Blackstone Group, according to industry sources, has amassed a war chest of roughly $250 million to buy non-agency, nonprime mortgages, another sign that “big money” investors have returned to the sector. At this point, it’s hard to say how much origination volume in the sector will grow. It’s well known that over the past 18 months, bond insurance giant PIMCO has been buying loans that don’t meet the qualified mortgage test from Citadel Servicing and others. The reason is ...
There was a hefty increase in mortgage originations for subprime borrowers with credit scores under 620, most of them FHA loans, according to Equifax. From January through October of 2015, some $50.7 billion of mortgages were originated for borrowers with credit scores below 620, the credit bureau said. That was up 28 percent from the same period in 2014. Equifax attributes this to smarter lending habits. Amy Crew Cutts, Equifax’s chief economist, said while there are many ...
The mortgage lending industry is seeing a convergence of regulation, technology and demographics that is fueling a drive toward eMortgages, eDelivery and greater use of mobile devices and other technologies to simplify, digitize and speed up the mortgage process, according to Jeffrey Nuckols, senior vice president of Xerox Financial Services. On the regulatory front, most of the latest impetus, of course, has come from the Consumer Financial Protection Bureau’s integrated disclosure ...
Mortgages to borrowers who misrepresented their occupancy status perform much worse than loans to borrowers who truthfully identify themselves as investors, according to a new analysis by researchers at the Federal Reserve Bank of Philadelphia. The researchers examined purchase mortgages originated between 2005 and 2007. Loan-level data from McDash Analytics was matched with credit bureau data from Equifax. The researchers defined borrowers as having committed ...
A U.S. Court of Appeals for the Federal Circuit recently upheld rulings that went against Mortgage Grader, a loan shopping website that has filed a number of patent-related lawsuits. The court upheld a ruling by a lower court that found that Mortgage Grader’s claims related to the “abstract idea” of anonymous loan shopping and that the patents obtained by the firm didn’t include an “inventive concept.” Mortgage Grader filed a lawsuit in January 2013 against Costco Wholesale and ...
The financial crisis has led to a broader, more demanding quality control process to ensure that mistakes are never repeated and that financial institutions adhere strictly to compliance requirements. As a result, mortgage lenders are much more vulnerable now to enforcement actions if they are found to have inadequate controls in place or to be noncompliant. One of the pitfalls lenders worry about is being held responsible – and potentially liable – for the actions of third-party ...
But there is this caveat: the steady growth of the top 50 servicers is in bold contrast to the industry’s top tier. Wells Fargo, Chase and Bank of America all reported shrinkage in their servicing businesses in 2015.
Steady growth over the course of 2015 may have taken the long-suffering mortgage servicing market close to the $10 trillion mark at the end of the year, according to a new analysis and ranking by Inside Mortgage Finance. The top 50 companies at 2015 serviced a combined $7.326 trillion in home mortgages, a slight 0.3 percent increase from the end of the third quarter. If the rest of the industry followed their lead, the supply of servicing outstanding rose to $9.982 trillion by the end of December. Based on trends during the first nine months of 2015, as reported by the Federal Reserve, the supply of home loan debt outstanding may have trickled...[Includes one data table]
RSS