Sometimes lost in the hoopla over the rising nonbank share of mortgage servicing is that banks have fallen in and out of love with the servicing market for decades.
The outstanding supply of single-family MBS declined 0.7 percent during the first quarter of 2015, according to a new Inside MBS & ABS market analysis. But that didn’t stop commercial banks from continuing to increase their holdings.
Correspondent originators continued to produce significantly more purchase mortgages as a share of their total production than brokers or retail lenders, according to a new Inside Mortgage Trends analysis of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the first quarter of 2015. Some 55.9 percent of correspondent originations were purchase loans, compared to just 36.5 percent for retail production and 35.1 percent for ... [Includes one data chart]
Industry observers noted that FAQs didn’t answer some of the big questions that matter to lenders, such as quality control, student debt and pre-funding review requirements.
Lenders have loosened downpayment requirements on conforming purchase-mortgages as part of a shift that typically occurs when the purchase market rebounds. The move toward higher loan-to-value ratios on purchase mortgages has been gradual, but industry analysts suggest it’s part of an effort by lenders to increase volume. “As lenders need more mortgage volume, average downpayments start to drop,” said Doug Lebda, CEO of LendingTree. “More lenders are beginning to loosen their guidelines and are going after a slightly broader pool of potential borrowers.” According to the Inside Mortgage Finance MBS Database, the original LTV ratio for newly originated purchase mortgages included in mortgage-backed securities issued by the government-sponsored enterprises has...
Lenders are accounting for an increasing share of home purchase financing as investors decrease their largely cash buying. Purchases by first-time homebuyers are rising, helped by FHA financing. “First-time homebuyers rarely buy homes with cash and with their increasing participation in the housing market, we expectedly see the proportion of cash-financed transactions falling,” said Tom Popik, research director of Campbell Surveys. The non-cash share of financing for home purchases increased...
Federal financial institution regulators have approved a long-anticipated final rule that revises mandatory flood-insurance and escrow requirements as well as force-placed provisions. The Federal Deposit Insurance Corp. board of directors adopted the final rule unanimously. It combines two proposed rules issued in 2013 and 2014 that would implement certain provisions in the Biggert-Waters Flood Insurance Reform Act of 2012 and subsequent changes made by the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA). Biggert-Waters exempts...
Potential borrowers have misperceptions about requirements for credit scores, downpayments and income, according to results from a survey by Wells Fargo and Ipsos Public Affairs.
Originations of VA mortgages in the first quarter of 2015 increased by 5.8 percent compared with the previous quarter and were up 86.0 percent from the first quarter of 2014.
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