Quicken Loans’ chief executive officer reiterated threats by company owner Dan Gilbert to exit the FHA business amid concerns about a forthcoming lender-certification rule and an ongoing court battle with the Department of Justice. A report by Reuters quoted Gilbert earlier this week as saying he is considering pulling Quicken Loans out of the FHA market. In an interview with IMFnews, Quicken CEO Bill Emerson said top management would be remiss if it did not think about exiting the business. Quicken will decide whether to stay or go after the FHA releases its revised rule on lender certification later this month, he said. The revised proposal restores a provision initially removed from the original proposal, which would require lenders to certify that neither the firm nor its officers have been suspended, debarred or excluded from participation in any federal agency transactions. In addition, the revised proposed rule requires ...

An Urban Institute analysis echoed observations in the FY 2015 actuarial audit of the FHA Mutual Mortgage Insurance Fund, calling for the separation of the highly volatile reverse mortgage portfolio from the fund. Assessing the performances of the larger forward mortgage portfolio and the smaller Home Equity Conversion Mortgage portfolio when determining FHA’s financial status results in an inaccurate picture, warned Laurie Goodman, director of the institute’s Housing Finance Policy Center. Including the highly unstable, unpredictable HECM business in FHA’s solvency calculation severely distorts the fund’s true financial condition, she said. Goodman’s dire warning puts a damper on the actuarial audit, which, for the first time since 2009, reported the fund’s capital ratio over the 2.0 percent statutory threshold, up from 0.41 percent in FY 2014 and a year earlier than projected in the ...

Customer satisfaction tends to be higher for the VA and FHA single-family mortgage programs than for Fannie Mae and Freddie Mac, according to the J.D. Power 2015 U.S. Primary Mortgage Origination Satisfaction Survey. So-called special mortgage programs, such as FHA and VA, showed a substantial improvement in customer satisfaction in 2015 compared to last year. VA customer satisfaction averaged 818 this year, up from 805 in 2014, while FHA customer satisfaction also averaged 818, an improvement from 794 in 2015, said Craig Martin, director of mortgage practice at J.D. Power. On the other hand, overall customer satisfaction with Fannie Mae- and Freddie Mac-related mortgage originations averaged 793 in 2015, an increase of 7 points from 2014. The annual study measures customer satisfaction with mortgage origination in six areas: application/approval process ...

The VA Home Loan Guaranty program has announced a new percentage that lenders can use in calculating the purchase price of a property securing a terminated loan. The new percentage becomes effective on Dec. 23, 2015. When a veteran borrower defaults on a VA loan, the agency is obligated to pay a guaranty claim to the loan holder. If requirements are satisfied, a foreclosing loan holder also has the option of conveying a foreclosed property to VA. A key component in conveying a property to the VA is the net value of the property to the federal government. Net value, essentially, is the fair market value of the property minus the total cost the agency estimates it would incur in acquiring and disposing of the property. A percentage that VA computes annually represents the costs of acquisition and disposition. The agency refers to this computed percentage as the “cost factor.” VA is continuing ...

Some market analysts see an investment opportunity brewing in subprime auto ABS in the coming year, despite increasing regulatory attention. But certain rating analysts are emphasizing the rising losses the sector has been seeing for the last few months, and a few contrarians think the market is either poised to enter bubble territory or is already there. Consumer ABS analysts at Wells Fargo Securities are recommending subprime auto subordinated bonds rated BBB, convinced they offer good value on a risk-adjusted basis. With spreads set to finish 2015 at historically wide levels (excluding the financial crisis), the analysts expect...

Quicken Loans recently launched a new, TRID-friendly product dubbed the “rocket mortgage,” so named because “in the eight minutes it takes a space shuttle to reach orbit, Americans will now be able to receive a full mortgage approval online,” the lender says in its marketing pitch. “Rocket Mortgage simplifies the largest, most complex and important financial transaction most consumers experience in their lifetime,” said Linglong He, chief information officer for the lender ...

Mortgage employment has risen by just over 5 percent the past year while loan production is on track to increase 33 percent from 2014 – a sign that residential lenders continue to hire as few workers as possible and use outsourcing firms. According to interviews conducted by Inside Mortgage Trends over the past week, it appears that demand for experienced loan officers will remain strong in the coming year, but servicing staffs will continue to shrink. Mortgage recruiter ...

Six months after rolling out an “unsecured” consumer loan, loanDepot has already funded $250 million worth of loans, and issued a $150 million security backed by the collateral. Will other nonbank mortgage lenders follow suit? The short answer to that question is yes, probably, but it remains to be seen whether nonbanks will have the stomach for the risk, though several executives interviewed by Inside Mortgage Trends concede that, in the end, the yield on such products ...

The Urban Institute has suggested separating FHA’s reverse mortgage business from future actuarial audits of the Mutual Mortgage Insurance Fund because it is producing a skewed picture of MMIF finances. In a recent blog, Laurie Goodman, director of the institute’s Housing Finance Policy Center, said including the highly volatile and unpredictable Home Equity Conversion Mortgage portfolio in FHA’s solvency calculation severely distorts the fund’s true financial condition ...

Commercial banks and savings institutions continued to backpedal away from the business of servicing residential mortgages for other investors during the third quarter, according to a new Inside Mortgage Trends analysis of bank call reports. Banks and thrifts serviced a total of $4.139 trillion of home mortgages for other investors at the end of September, most of them pooled in mortgage-backed securities. That was down 1.2 percent from June and off ... [Includes one data chart]