Fannie Mae, Freddie Mac and Ginnie Mae securitized $119.7 billion of correspondent-originated loans during the third quarter of 2015, a new Inside Mortgage Trends analysis reveals. That was up 8.6 percent from the second quarter. Meanwhile, broker production fell 10.6 percent during the third quarter. Brokered loans accounted for just 11.5 percent of agency mortgage-backed securities issued during the third quarter, down from 12.9 percent in ... [Includes one data chart]
A new study published by the National Bureau of Economic Research suggests that strategic defaults on mortgages are much less common than previously believed. The researchers with the Federal Reserve and two universities suggest that their findings have significant implications for servicers’ loss-mitigation techniques. The researchers used expansive data from the University of Michigan’s Panel Study of Income Dynamics survey from 2009 through 2011 ...
New research from FICO suggests that broader economic conditions have helped limit losses on home-equity lines of credit originated before the financial crisis. For years, analysts have warned about the risks posed by HELOCs after the loans hit 10-year reset periods, prompting payment shock for some borrowers as principal and interest is due as opposed to the interest-only payments that were initially allowed. The risk to banks is seen as particularly harsh because ...
Ongoing economic conditions and increasing regulatory scrutiny are creating challenges and opportunities for different players and segments, industry observers say, with the most successful opportunists likely able to snag greater market share while others get gobbled up by larger or stronger rivals. The current market environment of increased regulation is putting significant pressure on the largest banks and has created a growing opportunity for mainstream mortgage bankers ...
The start of fall marked a reversal of trends in the housing market, according to results from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. In September, investors gained market share from current homeowners and first-time homebuyers, and the distressed property share of home sales increased. The gains in market share were part of a seasonal pattern. And while the trends aren’t necessarily positive for mortgage-industry participants ...
Purchase mortgages accounted for 60.2 percent of originations in 2014, but California remained a hotbed of refinance activity, according to a new Inside Mortgage Trends analysis of Home Mortgage Disclosure Act data for last year. Some 52.8 percent of mortgage originations in the Golden State last year were refi loans, the highest such concentration anywhere in the U.S. House prices and loan amounts are significantly higher in many California markets ... [Includes one data chart]
In a spurt of new activity unveiled at the annual convention of the Mortgage Bankers Association this week, Fannie Mae and Freddie Mac are ramping up the competition between each other, announcing new programs and partnerships and acting as though housing reform is not on the radar anytime soon. And it may not be. While rumors have swirled recently, hinting that the government-sponsored enterprises may be released from conservatorship, White House and Treasury officials confirmed this week that there are no such plans to recapitalize and release the two from government stewardship. “None of us should be misled...
CFPB Director Richard Cordray had his turn next: “Prophets of doom have warned of delays in closings and the need for consumers to buy longer rate locks because of their failure, or perhaps refusal, tounderstand the requirements of the three-day waiting period,” he said.
Some observers believe the CFPB is questioning whether certain LOS vendors are qualified to serve the industry, fearing a potential crackdown on such companies.
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