As part of its RMBS 3.0 initiative, the Structured Finance Industry Group this week released the second installment of its recommended best practices for the non-agency MBS market. New and revised material was released for each of the three major “work streams” in the project, which broadly cover: representation-and-warranty issues and repurchases; due diligence, data and disclosure; and the roles of transaction parties and bondholder communications. The 54 new pages released this week bring the cumulative work to about 125 pages, including appendices. In the reps-and-warranties section, new provisions cover...
The National Credit Union Administration this week sued Deutsche Bank National Trust Co., alleging the bank violated federal and state laws by failing to carry out its duties as trustee for 121 non-agency MBS trusts. According to the complaint filed in federal district court in Manhattan, Deutsche Bank failed to protect five corporate credit unions – U.S. Central, WesCorp, Members United, Southwest and Constitution – that purchased $140 billion in RMBS issued from the trusts between 2004 and 2007. The securities lost...
After a year of looking, the Federal Housing Finance Agency announced last week it has finally picked a chief executive to run the fledgling Common Securitization Solutions: industry veteran David Applegate, who has a long resume in mortgage banking. Applegate led both GMAC Mortgage and GMAC Bank during a 17-year career at General Motors Acceptance Corp He also worked at mortgage insurer Radian Guaranty. Applegate’s last job title was president and chief executive officer of Homeward Residential, Dallas, a mortgage-banking firm.
Fannie Mae and Freddie Mac reported a combined $6.0 billion in net income for the third quarter of 2014, up from $5.1 billion in the previous quarter. The two GSEs will send to the Treasury $6.8 billion as return on the government’s senior preferred stock. That will bring cumulative payments under the GSE conservatorships to $225.5 billion. Fannie and Freddie were given a total of $187.4 billion in government funds in order to stay in business.
Mortgage-banking income reported by a diverse group of 33 lenders fell 16.0 percent from the second quarter of 2014 to the third, according to a new analysis by Inside Mortgage Trends. The 33 publicly traded companies, which include most of the top originators and servicers in the industry, had a combined $3.547 billion in net mortgage banking income during the third quarter. That was only 12.0 percent above the dreary $3.166 billion the group earned during the first three months of 2014, which was one of the industry’s least profitable quarters ever. The tepid third-quarter results came at a time when origination volume was unexpectedly strong – up 36.7 percent from the first quarter of 2014 – and many lenders have put ...
Mortgage delinquency rates kept falling across the country in the third quarter of the year, according to data provided by the Mortgage Bankers Association, Fannie Mae and Freddie Mac. The delinquency rate for mortgages on one- to four-unit residential properties declined 19 basis points, on a seasonally adjusted basis, to 5.85 percent of all loans outstanding as of Sept. 30, 2014, according to the MBA. This is the lowest level seen since the fourth quarter of 2007 and represents the sixth straight quarterly decrease, according to the trade group. In terms of product mix, the seasonally adjusted delinquency rate slipped 15 bps to 3.05 percent for prime fixed loans and decreased 45 bps to 4.83 percent for prime adjustable-rate mortgages. ...
Freedom Mortgage recently broke into the top 10 ranking of mortgage originators and doesn’t look to be stopping there. Through the first nine months of 2014, Freedom produced $16.4 billion in originations, a 28.5 percent increase over the same period last year. That’s a huge increase at a time when overall mortgage origination volume dropped a whopping 44.2 percent. Last week, Freedom announced a deal to acquire Continental Home Loans, a retail lender focused on the New York metro market. Freedom officials said the deal, structured as an asset acquisition transaction, will boost its monthly production volume to $2 billion. That would raise the firm a notch or two in the rankings. Beefing up its retail presence was one reason ...
Usually, the winter isn’t the best time to be looking for a job in the mortgage industry, especially if you happen to be a loan officer facing the dead months of December through February. But thanks to the recent downdraft in interest rates – and some hope that lending outside the qualified mortgage bucket will start to grow – the immediate outlook for mortgage employment isn’t so bad after all. According to figures compiled by the Bureau of Labor Statistics, mortgage brokerage firms added 1,700 workers during September, one of the best hiring sprees in some time. Compared to the same month a year ago, employment is up by 400 positions to 73,000. Mortgage banking firms, which are listed under the BLS ...
By 2030, artificial intelligence will have transformed businesses and the work that people do to the extent that certain jobs, such as real estate agents, will become extinct, according to a new report from realty consulting firm CBRE and property developer Genesis. The ideas, trends and behaviors that will shape work and the workplace in 2030 are already noticeable today, said the report. When that time comes, “where we work and live will be diverse and intertwined,” it said. The report was based on interviews with 220 experts, business leaders and young people in Asia, Europe and North America on how these observed trends will impact business and evolve work practices and the workplace. The report predicts that process work, ...
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