Rising home prices and interest-rate trends continue to decrease purchase-mortgage affordability for potential homebuyers. However, industry analysts note that mortgage affordability is still historically high and could soon improve. The 20-city S&P/Case-Shiller home price index increased by 1.8 percent in July compared with the previous month, according to the latest data released this week. On a year-over-year basis, the index was up by 12.4 percent. The home-price gains indicate a ...

With roughly three months left before the Consumer Financial Protection Bureau’s rules on loan-originator compensation and ability-to-repay standards kick in, mortgage originators are scrambling to find the best way to survive and thrive under the new regime. In recent weeks, some in the mortgage broker community have suggested that operating as a mini-correspondent could help brokers bypass points-and-fees complications with the qualified mortgage definition under the ATR rule ...

Wingspan Portfolio Advisors, a Dallas-based diversified mortgage services provider, has acquired two customer service operations from JPMorgan Chase to improve its delivery of outsourced mortgage services, including loan origination and specialty servicing. The company’s latest acquisition is a large-scale customer service site in Monroe, LA, which would enable Wingspan to respond to client needs faster and better, according to Steven Horne, Wingspan president and chief executive officer ...

Servicers largely approve of an accounting change for foreclosures proposed by the Financial Accounting Standards Board. However, industry participants differ on particular disclosures that would accompany the proposed change. In July, FASB proposed clarifying when a foreclosure occurs, for accounting purposes. The accounting board said reporting practices for troubled-debt restructurings and residential foreclosures are currently varied due to the lack of an accounting definition for ...

Although Nationstar Mortgage has delayed loan closings in certain production channels due to what it calls a “switch” in document custodians, it continues to tap the capital markets for debt and servicing advances. This week alone, the nation’s sixth largest residential servicer priced $225 million in senior notes, and inked a deal for a new $1 billion servicing advance facility with Wells Fargo serving as trustee and Barclays Bank as the administrative agent. The lender is actually Barclays. A spokesman for the nonbank told...

Bank holdings of home-equity loans continue to decline, with mixed performance trends. Regulators warn that home-equity lines of credit originated before the financial crisis are a particular concern as the loans are set to reach their amortization periods. Banks and thrifts held $1.05 trillion in HELOCs, HELOC commitments and closed-end seconds as of the end of the second quarter of 2013, according to the Inside Mortgage Finance Bank Mortgage Database. The holdings declined by 1.9 percent ... [Includes one data chart]

The Federal Home Loan Bank of Chicago has announced a partnership with Ginnie Mae to issue securities guaranteed by the secondary market agency and backed by home loans originated by member financial institutions. The new conduit product, “MPF Government Mortgage-Backed Securities,” provides another secondary mortgage market outlet for lenders originating mortgages insured by the FHA or guaranteed by the VA or the Rural Housing Service. Low-volume lenders that currently lack direct access to the secondary market are expected to benefit from the new FHLBank program. MPF GMBS would allow lenders to ... [1 chart]

The Department of Housing and Urban Development has used up the $25 billion of commitment authority allocated by Congress for the FHA multifamily and healthcare programs, though mortgage insurance applications will still be accepted through Sept. 30. Firm commitments issued as of Sept. 16 will be honored and loans may be endorsed and closed up until the cutoff date, HUD said in a letter this week to program partners. HUD will be unable to issue new commitments until an FY 2014 budget for the FHA multifamily and healthcare programs is approved. All transactions requesting commitment authority between ...

An official at the Office of the Comptroller of the Currency warned that non-agency jumbos with interest rates lower than comparable agency mortgages are a sign that banks are chasing yield. Darrin Benhart, deputy comptroller for credit and market risk, said banks are taking on more interest rate risk and credit risk to maximize returns. “We are beginning to see signs of the classic cyclicality in banking where traditional lagging indicators are improving so bankers start to layer risk back into ...

The Office of Management and Budget has cleared a proposed rule setting qualified mortgage standards for FHA-insured single-family mortgages for issuance in the coming weeks. The OMB signed off on the proposed standards on Sept. 12 and the Department of Housing and Urban Development has a few more refinements to perform before publishing the proposal for public comment. HUD declined to discuss the contents of the proposed standards or indicate a timetable for a final QM rule. Industry participants, on the other hand, said they would be surprised if ...