Last summer, the Office of the Comptroller of the Currency issued an advisory concerning warehouse lines of credit that was all but ignored by most players in the market. That is, until now. In a research note, Keefe, Bruyette & Woods said the “new” OCC rules could force Texas Capi-tal Bank to increase the risk weighting of its warehouse lines to 100 percent, from its current designa-tion of 37 percent.
Mortgage Master, a Walpole, MA-based super-regional lender and one of the largest privately held mortgage companies in the United States, is actively expanding into some key markets in the country, while out-racing behemoth competitor Wells Fargo to the top of the ranking of mortgage lenders in its home state. And the keys to success nationally and locally are the same: strong recruitment of top-notch originators and consistent exceptional service. “I think we’re out-running them [Wells Fargo]. They have ...
What does it take for a community bank to be considered for an award for innovation? It would seem a lot in the case of Seattle-based HomeStreet Bank. Perhaps, it may also be due to the fact that HomeStreet Bank has gone from “troubled institution” to “well-capitalized institution” in four years. In fact, in March last year, the Federal Deposit Insurance Corp. and the Washington State Department of Financial Institutions terminated a 2009 cease-and-desist order for the bank and ...
The latest credit scoring model from VantageScore Solutions includes credit scores for up to 30 million consumers who haven’t been scored by other providers, according to the company. In an attempt to ease adoption of the score among lenders, the company also changed its scoring range to conform with the range of scores offered by FICO. Sarah Davies, a senior vice president of analytics and product management at the company, said VantageScore 3.0 can score 15 million more potential borrowers than ...
Although it expects to report “significant net income” for both the final three months and the full year 2012, Fannie Mae announced late this week that it will delay its earnings release while the GSE’s accountants continue to crunch numbers to determine if the company should take a lucrative but complex tax deduction. In a form 12b-25 filing with the Securities and Exchange Commission, Fannie requested a filing extension beyond its March 18 deadline because it needs more time to analyze its deferred tax assets, which are unused credits and deductions that can be used to cover future tax bills.“The release of the valuation allowance would have a material impact on the company’s 2012 financial statements and result in a significant dividend payment to the U.S. Treasury,” noted Fannie in its SEC filing.
Banks and thrifts reported a sharp increase in the volume of home loans sold in their mortgage banking operations last year, hitting the highest level since 2009, according to a new Inside Mortgage Trends analysis of bank call report data. Mortgage banking units generated $1.553 trillion in loan sales during 2012, a 36.9 percent jump from the previous year. Activity peaked at $417.1 billion in the fourth quarter, a 3.9 percent increase over the third quarter. Some double counting ... [Includes one data chart]
The hundreds of billions of dollars – perhaps trillions of dollars – in recent and upcoming mortgage servicing acquisitions include significant regulatory risks, according to industry lawyers. Concerns include increased attention from regulators, outstanding liabilities and state licensing requirements. Up to $1.5 trillion in servicing could be transferred in the next two years, mostly from depository institutions to nonbanks, according to industry analysts. Most of the large banks are actively ...
Fannie Mae is having internal discussions regarding how it might change the way it holds mortgage seller/servicers responsible for losses when a deficiency is discovered on a delivered loan. A spokesman for Fannie told Inside The GSEs that under one scenario, a lender might take the “credit loss” on a mortgage with Fannie agreeing to keep the loan as opposed to forcing a buyback. A deficiency might include a mistake made during the underwriting process, such as borrower information being incorrectly punched into a computer. “If data were punched in wrong, there might be a pricing change,” said the spokesman.
Nearly all banks and thrifts gradually increased the fair market value they calculated for their mortgage servicing rights during the fourth quarter of 2012, according to a new Inside Mortgage Trends analysis of call report data. At the end of the year, banks and thrifts serviced a total of $5.323 trillion in home mortgages for other investors and they valued these MSRs at $41.43 billion. The ratio of fair market value of the MSRs to unpaid principal balance of loans serviced for others was ... [Includes one data chart]
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