Residential Capital, a former subsidiary of Ally and currently in Chapter 11 bankruptcy, has asked the court for permission to sell an estimated $130 million in FHA-insured mortgage loans. ResCap made the request in a recent filing with the U.S. Bankruptcy Court in Manhattan, which monitors and approves all of the beleaguered companys activities and requests during bankruptcy. According to the company, its unsecured creditors have signed off on the prospective sale of the FHA loans although the court would still have to approve the request during a scheduled hearing on Jan. 16. ResCap sought bankruptcy protection on ...
Ginnie Mae guaranteed more than $109.7 billion in mortgage-backed securities in the fourth quarter of 2012, with Wells Fargo and Chase Home Finance accounting for nearly half of the issuance, according to an Inside FHA Lending analysis of issuer data. Ginnie Mae issuers securitized 9.1 percent more in government-backed mortgages in the fourth quarter than in the previous quarter while issuance was significantly higher year-over-year, rising a whopping 44.8 percent. Although the top five Ginnie Mae issuers combined for 56.6 percent of the quarters total Ginnie Mae MBS production (Wells and Chase were on top with a combined 45.8 percent market share), 10 lower-ranked issuers posted ... [1 chart]
Expect the Consumer Financial Protection Bureau and the Federal Housing Finance Agency to roll out a national mortgage database this year, but experts say it remains to be seen how comprehensive or how secure the first-of-its-kind mega electronic information storehouse will be. This week, during a webinar sponsored by the Ballard Spahr law firm, experts from Ballard and Navigant Consulting agreed that the governments commitment to develop an origination-to-foreclosure repository of mortgage data is a daunting task that will take much longer than a single calendar year to implement and refine. I absolutely believe...
The official watchdog of the Federal Housing Finance Agency has pointedly suggested that the GSE regulator direct Fannie Mae and Freddie Mac to determine whether or by how much the two companies were swindled out of billions of dollars as a result of banks alleged manipulation of a key interest rate and then determine how to recoup those losses, in court if necessary. A recent unpublished memo by the FHFAs Office of Inspector General urged the Finance Agency to prepare to file suit against the banks involved in setting the London Interbank Offered Rate after an analysis of the GSEs published financial statements and publicly available historical interest data concluded that Fannie and Freddie may have suffered more than $3 billion in losses due to LIBOR manipulation.
Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency, are moving forward together to develop industry-wide data standards, according to updates from both GSEs. A component of the FHFA-mandated Uniform Mortgage Data Program, the Uniform Mortgage Servicing Dataset will define a standard dataset that will facilitate data exchanges between servicers and investors with standardized definitions, formats and valid data values. The adoption of an industry standard data model will provide long-term benefits to servicers, GSEs and the mortgage industry, noted the GSEs update published Dec. 12.
Depository institutions managed to trim the volume of mortgage loans they serviced for other investors during the third quarter of 2012, according to a new Inside Mortgage Trends analysis of call report data...[includes one data chart]
Investment banking and advisory firms continue to talk about private equity money eyeing the mortgage servicing market, but so far no one has made a major plunge. Sterling Partners, a Chicago-area equity fund that hired Phoenix Capitals Michael Lau back in the fall, plans to invest several hundred million in MSR, according to industry advisors familiar with the firms plans. Sterling declined to comment on the subject. Lau, an executive vice president at Phoenix ...
Mortgage banking profitability soared to record levels in the third quarter, but some industry analysts say the boom may begin to taper off in 2013.The surge in mortgage banking income during 2012 came from increased secondary marketing gains as the spread between primary market rates and yields on agency mortgage-backed securities widened to historic levels.
Most consumers have a favorable view of debt protection services for their mortgage and credit card debt obligations, despite the occasional news report of abuses in the sector, according to a new study from officials at the Federal Reserve, based on data from the Consumer Credit Industry Association.Consumer attitudes among purchasers have not changed from the high levels of favorable views of users in the past, said the study, which was authored by Thomas Durkin and Gregory Elliehausen...
Technology advances have helped most credit unions improve productivity in their mortgage origination processes, but there are significant differences among institutions and the industry as a whole could do a better job in managing the pipeline, according to an analysis by Mortgage Cadence. While some credit unions post remarkably high productivity and correspondingly low costs to close, there is significant room for improvement, said Mortgage Cadence, which offers an integrated loan origination system.