With just over four weeks left in 2014, investment bankers expect a flurry of bulk deals to hit the market. But whether they close or not is a different matter. “There are definitely several deals – both large and small – that are being considered,” said Tom Piercy, managing member of Interactive Mortgage Advisors. “We are working on four or five deals totaling $10 billion.” Piercy said he wasn’t at liberty to provide details about the transactions since some have yet to be finalized. In two recently announced auctions, IMA is selling a $3.2 billion package of Fannie Mae/Freddie Mac mortgage servicing rights and a $1.6 billion pool.The brokerage firm also is in the process of selling a New York-based mortgage ...
Banks are lagging behind consumer expectations when it comes to digital technologies, especially as far as younger, more elusive borrowers are concerned. But for those institutions that get with the program, they can boost their market share and their bottom line, a new study from Cisco Consulting Services suggests. For mortgage lenders, making an obvious move in a digital direction, such as offering a remote “video mortgage,” could increase profits by as much as $134 million for a financial institution with $10 billion in annual revenue, according to the study. There appears to be strong market interest in such services. Fifty-four percent of U.S. respondents surveyed were interested in the mortgage advisor concept, and 42 percent would likely choose a ...
Fannie Mae has priced its final risk-sharing transaction of the year, a nearly $1.5 billion offering that priced wider than previous deals, the GSE announced last week. The $1.49 billion note is the GSE’s fourth transaction under its Connecticut Avenue Securities series of 2014. Last year, the Federal Housing Finance Agency ordered both Fannie Mae and Freddie Mac to shrink the GSEs’ role in the U.S. housing market.
Fixed-rate mortgages with 15-year terms are good products for low- and middle-income borrowers or have limited appeal for such borrowers as well as for lenders, according to competing think tanks.Co-directors of the American Enterprise Institute’s International Center on Housing Risk developed the Wealth Building Home Loan that Bank of America started offering in September. Edward Pinto, one of the co-directors of the AEI’s center, said the 15-year fixed-rate WBHL requires little or no downpayment, due in part to BofA’s partnership with the Neighborhood Assistance Corp. BofA will also provide a subsidy to decrease the interest rate on the loans. Pinto said the loan has much less foreclosure risk than a 30-year fixed-rate FHA mortgage due to the equity building ...
A recent independent survey commissioned by Discover Home Loans found that most homebuyers believe online technology improves their search and purchasing ability. According to the results, 89 percent of homebuyers used some form of online technology to help them with the home purchase process. Almost half of all homebuyers, 47 percent, said technology saved them money while 92 percent said it saved them time. Specifically, 83 percent of the group looked at real estate listings or applications like Trulia or Zillow, while 72 percent used online maps or map apps to explore potential neighborhoods. Approximately 55 percent researched a neighborhood using local websites. The majority of respondents, 90 percent, said using technology was a “positive experience.” Two-thirds of this group ...
The Mortgage Industry Standards Maintenance Organization recently released version 3.3.1 of its residential reference model for public comment. This version of the standard includes data points and structures related to a number of recent regulatory and reporting requirements and additions in the areas of mortgage insurance coverage and conditions, title, payoff and property valuation. “Version 3.3.1 of the MISMO Reference Model and Logical Data Dictionary are the direct result of MISMO contributors from across the industry collaborating to solve business problems and develop the standards needed to meet industry needs in today’s rapidly changing regulatory and compliance environment,” said Mike Fratantoni, president of MISMO and chief economist for the Mortgage Bankers Association. In addition to the LDD, XML schema and ...
Understanding the ebb and flow of mortgage debt is hampered by a lack of data on mortgage flows, making it more difficult for policymakers and regulators to deal with fluctuations in overall credit growth. A working paper published recently by the Federal Reserve attempts to make sense of the factors driving the volatility in the stock debt by analyzing changes in aggregate mortgage debt into mortgage inflows and outflows. It attributes these inflows and outflows to more micro-components such as investor activity, first-time homebuying and borrower credit score. “Quantifying these various flows into and out of the pool of mortgage debt allows for a precise assessment of the relative importance over time,” the paper noted. “Creating such data on an ...
Commercial banks and thrifts reported a combined $4.67 billion in mortgage-banking income during the third quarter of 2014, according to a new Inside Mortgage Trends analysis of call-report data. Third-quarter results were down 4.9 percent from the second quarter, which is consistent with the figures reported by publicly held mortgage lenders. Year-to-date mortgage-banking income for the depository institutions was $12.96 billion, down 37.0 percent from the first nine months of last year. Wells Fargo and JPMorgan Chase continued to rank as the top two banks in mortgage-banking income, but both reported declines of more than 25 percent from the second quarter to the third. On a year-to-date basis, the two lenders accounted for 47.3 percent of total mortgage-banking income earned ...
What exactly is Owners.com? Launched in 1996, it’s supposedly the largest directory of homes for sale by owners. In other words, they don’t use traditional Realtors…
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