Net income per share at Redwood Trust increased in 2017 as the real estate investment trust put an emphasis on expanded-credit mortgages and is poised to further diversify its residential mortgage activities. The real estate investment trust estimated that its net income per share will fall somewhere in the range of $1.57 to $1.63 for 2017, up from $1.54 per share in 2016. The REIT added that its average return on equity will be in the range of 11.6 percent to 12.1 percent in 2017 compared with ...

Financial services provider Situs is two weeks away from closing on its purchase of MountainView Financial Solutions, Denver, one of the most active brokers of mortgage servicing rights in the nation. Once the transaction is completed, it will mark the second significant residential-related purchase of the past seven months for the New York-based Situs, which bills itself as a “global provider of business solutions for real estate and financial service firms.” Back in May ...

PennyMac is leaping into the wholesale-broker channel with its new Power platform as it eyes increased purchase-money and jumbo mortgage originations. The company’s enhanced production platform will provide mortgage brokers broad access to data, allowing them to proactively manage their pipelines, according to executives at the California-based firm. “Power is a proven, best-in-class platform,” said Kimberly Nichols, managing director of PennyMac’s ...

While mortgage originations overall declined through three quarters in 2017, production of adjustable-rate mortgages increased slightly from the same period in 2016, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $161.0 billion of ARMs were originated in the first three quarters of 2017, up 2.5 percent compared with 2016. Total mortgage originations declined by 10.1 percent in that span ... [Includes one data chart]

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]

Senate lawmakers this week introduced bipartisan legislation to protect veterans and servicemembers from predatory refinancing schemes. Introduced by Sens. Tom Tillis, R-NC, and Elizabeth Warren, D-MA, the bill would require lenders offering streamline or cash-out refinancing to demonstrate a material benefit to veterans with a VA loan. The Protecting Veterans from Predatory Lending Act reflects measures Jeffrey London, director of VA’s Loan Guaranty Service, talked about when he testified during a hearing on loan churning before the House Veterans Affairs Subcommittee on Economic Opportunity (See next story.) Prior to submitting a refi loan for a VA guarantee, a lender would be required to certify that all fees associated with the transaction would be recouped by the veteran through lower monthly payments within 36 months. Such fees would include closing costs and any expenses other than ...

Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan-churning problem. Lenders urged Congress and the two agencies to be cautious in prescribing fixes that could potentially cut off VA funding. Jeffrey London, director of the VA Loan Guaranty Service, said a proposed rule that includes a net tangible benefits test for veterans as well as seasoning and recoupment requirements will be issued soon. The VA is also planning to require upfront lender disclosure of the terms and benefits of a streamline or cash-out refi, including the recoupment period of the new transaction. Even though serial refinancing is not systemic to the VA portfolio, it has grown in ...

2018 might not turn out to be a record-breaking production year for FHA and VA, but it could become significant in terms of enforcement and housing finance reform, according to industry stakeholders. Ed Pinto, codirector of the American Enterprise Institute’s International Center on Housing Risk, expects a slight increase in FHA’s and VA’s mortgage unit production and stronger dollar volumes due to rising house prices. Pinto believes loose purchase lending, particularly by FHA, and declining housing inventory are driving housing prices. This in turn results in FHA/VA cash-out refinancing at very high loan-to-value ratios, which helps feed the general economy but makes FHA lending riskier, he said. “We see a stronger demand for housing amid constrained housing supply,” said Pinto. “We’re seeing this vicious cycle of purchase transactions becoming more risky, cash-out transactions increasing in ...

Ginnie Mae is redefining the term “defective mortgage” to remind issuers of their obligations when confronted by a mortgage that does not have federal insurance or guarantee. The action also clarifies options issuers may consider in dealing with defective mortgages. Under their guarantee agreement with Ginnie, issuers are required to cure, buy out or replace single-family mortgages or manufactured home loans that are missing the requisite FHA insurance or VA or U.S. Department of Agriculture guarantee within 120 days after the issue date of the mortgage-backed securities. Ginnie made clear that mortgages that do not have federal insurance or guarantee by the deadline for final certification of the related pool or loan package are defective. In addition, mortgages that have been rejected by FHA, VA or USDA, or for which federal insurance or guarantee have been withdrawn, are defective as ...

A federal district court in Florida has agreed to a government motion to intervene in a False Claims Act lawsuit against Bank of America in order to reach a settlement on behalf of a relator. Bruce Jacobs, a foreclosure attorney and relator in South Florida, filed the lawsuit. A former Miami prosecutor, he now represents homeowners in foreclosure proceedings initiated by financial institutions, including BofA. In his lawsuit, Jacobs alleged that BofA submitted false claims in violation of the FCA. Specifically, the bank allegedly submitted endorsements with unauthorized signatures and false mortgage assignments that would confer standing to foreclose. In addition, Jacobs additionally asserted a reverse FCA claim alleging that BofA made false statements when entering into the 2012 National Mortgage Settlement (NMS) consent judgment with the U.S. government. The landmark $25 billion settlement with ...