Fannie Mae and Freddie Mac saw a marked decline in refinance business during the second quarter of 2013, but a strengthening housing market helped offset some of the lost volume. The two government-sponsored enterprises securitized $256.0 billion of single-family refinance loans during the second quarter, according to the Inside Mortgage Finance GSE Seller Profile, a quarterly statistical report based on loan-level, mortgage-backed securities disclosures. That was down 13.6 percent from ... [Includes two data charts]

Mortgage banking remained highly profitable during the first quarter of 2013, but the hefty margins earned in secondary market activity declined and production volume tapered off, according to the Mortgage Bankers Association’s quarterly performance report. The average firm participating in the survey generated $3.65 million in pretax income during the first quarter, off 22.5 percent from the previous period, the MBA said. That was still well above the $2.33 million in average earnings for the ...

To implement sustainable cost reductions, lenders and servicers should address four critical elements, according to analysts at PricewaterhouseCoopers. PWC said executives addressing consumer lending costs should develop a strong foundation, create breathing space, look at the system as a whole and embed a cost-conscious culture. “To create sustainable reductions in cost requires a comprehensive review of the organization, its strategic positioning and the underlying ...

Although it appears that the rate on the benchmark 10-year Treasury has finally stabilized, most mortgage professionals are operating under the assumption that the days of ultra-low rates are over. That may be the “bad” news. But there is good news in rising rates in the form of higher values attached to mortgage servicing rights. As FBR Capital Markets points out in a recent note to investors: “MSR holders are the clear winners” when it comes to higher rates. In its report, FBR lays out the basic ...

Given that regulators are paying closer attention to fair lending these days than ever, as well as the growing use of social media by mortgage lenders, some top compliance sources have offered up a number of best practices and other recommendations to help firms reduce or eliminate their potential liability. “I’ve heard it said that some companies choose not to do social media or websites because of the risk. When I hear that, I’m perplexed because it is the main form of communication with the ...

Manufactured housing as a low-cost housing option is already in a serious slump, but regulations set to take effect early next year would push it to the brink of extinction unless offsetting legislation is passed, warned an industry trade group. Effective in January 2014, new regulations implementing provisions in the Dodd-Frank Act will significantly limit the ability of low-income borrowers to obtain mortgage financing needed to purchase a manufactured home, according to the Manufactured Housing Institute ...

Fannie Mae and Freddie Mac forked over a combined $66.4 billion in dividends to the U.S. Treasury at the end of June with more payments – though not as large – expected for quarters to come. Fannie paid the Treasury Department roughly $59.4 billion, while Freddie paid about $7.0 billion. A large chunk of Fannie's recent profits are tied to “deferred tax assets” which involve the recapture of money originally given to the GSE by Treasury to bolster its capital position.

The linchpin for a viable and comprehensive National Mortgage Database is to ensure that the identities of both mortgage borrowers and mortgage servicers from whom the statistical information is collected for analysis are protected behind a firm wall of security countermeasures, according to project architects. During a recent webinar sponsored by the Urban Institute, Federal Housing Finance Agency National Mortgage Database Project Director Robert Avery told attendees that privacy is a paramount concern in order to make the project work. “The challenge is to protect borrower/lender personally identifiable information and provide useful data,” said Avery.

Lenders that originate home loans to hold in portfolio are concerned about the regulatory consequences of originating non-qualified mortgages. While some have asked for a blanket exemption from liability for non-QMs held in portfolio, Democrats in Congress appear unlikely to approve such changes. “Congress should amend the ability-to-repay statute to grant QM status to all mortgage loans held in portfolio by community banks,” Charles Vice, commissioner of the Kentucky Department of ...

Bank and thrift holdings of home-equity loans continue to decline, according to the Inside Mortgage Finance Bank Mortgage Database. Performance on the loans has been mixed, and there are concerns about the expiring interest-only period on vintage home-equity lines of credit. Banks and thrifts held $1.07 trillion in HELs – HELOCs, unused HELOC commitments and closed-end second liens – at the end of the first quarter of 2013, down 1.8 percent from the previous quarter. TD Bank was ... [Includes one data chart]