The mortgage originations market is still, by and large, a banker’s game, but nonbank lenders are continuing to muscle up their share of new production, according to a new Inside Mortgage Finance analysis and ranking. During the first quarter of 2014, nonbank lenders accounted for 37.7 percent of originations made by a large sample of lenders that covered more than three quarters of the total production during the period. That was up from a 35.5 percent nonbank share in the fourth quarter of 2013 and a 26.0 percent nonbank share back in the first three months of last year. The nonbank share of originations is...
The New York Department of Financial Services expanded its investigation of nonbank servicers, raising concerns about sales of real estate owned properties for Ocwen Financial by Altisource Portfolio Solutions, an affiliate of the nonbank servicer. Officials at Altisource downplayed the concerns late last week and said the company plans to continue to grow with Ocwen. In February, NYDFS Superintendent Ben Lawsky put on indefinite hold a planned servicing transfer from Wells Fargo to Ocwen on mostly non-agency mortgages with an unpaid principal balance of $39.2 billion. Lawsky has sent a number of questions to Ocwen as well as Nationstar Mortgage based on concerns that the nonbank servicers were growing too quickly. Officials at Ocwen note...
One of the boldest underwriting moves was taken by TD Bank, which recently announced a portfolio loan that has a downpayment requirement as low as 3 percent.
If you thought the CFPB was finished with the mortgage closing process when it issued its integrated disclosure rulemaking under the Real Estate Settlement Procedures Act and the Truth in Lending Act, think again. The bureau also sought public input on the “pain points” associated with getting a new mortgage, and based on the comments received to date, the agency has identified 1,480 such spots, according to Brian Webster, the originations program manager for mortgage markets at the CFPB.So last week, in a high profile public forum attended by officials of other housing-related federal agencies as well as industry representatives and consumer advocates, the bureau announced it would roll out later this year a voluntary, three-month e-Closing pilot project...
As part of the CFPB’s public forum last week during which the agency announced its forthcoming eClosing pilot project, the bureau also issued guidelines that articulate the minimum functionalities required of potential participants and spell out the features the CFPB wants to test in the pilot. To join the bureau’s pilot on electronic closings, each participant must currently have a system that meets minimal technical capabilities and requirements, as demonstrated by specific features and functionalities. “The CFPB created these minimum requirements to ensure that the pilot program is focused on the specific features and consumer outcomes that the bureau is seeking to evaluate,” the agency said.First, a pilot participant must have an eClosing solution with the ability to store...
Who gave up market share to nonbank lenders? The biggest decline was among banks with over $1 trillion in assets: JPMorgan Chase, Wells Fargo, Bank of America and Citigroup.
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