New Day USA, an exclusive VA lender, is building up its purchase mortgage-lending platform to help grow its VA business by the end of 2018, according to the firm’s top financial adviser.Based in Fulton, MD, New Day is developing its purchase-lending capability to help grow its overall VA business by 20 to 25 percent annually, said Joseph Murin, New Day’s chairman emeritus. “We’re growing slowly,” he said. “We’d rather walk before we run.” An approved VA lender, New Day’s focus has been almost entirely on cash-out refinancing. New Day currently ranks 21st among Ginnie Mae VA sellers for the first quarter of 2016, according to Inside FHA/VA Lending’s database. The company closed the first quarter with $463.1 million in VA loans, up 22.8 percent from 4Q15 and up a whopping 87.6 percent on a year-over-year basis. “We are spending a lot of time developing and understanding the ...
Eleven lenders paid a total of $152.1 million in civil penalties and settlements while three others lost their FHA approval for various violations of FHA requirements, according to the Mortgagee Review Board’s latest report on administrative actions taken against FHA-approved lenders. As required by the Department of Housing and Urban Development, the report summarizes the disciplinary actions imposed by the board on FHA lenders from Oct. 1, 2014, to Sept. 30, 2015. These actions include $151.7 million in settlements and $370,119 in civil money penalties, withdrawals of FHA approval, suspensions, probations and reprimands. Allied First Bank of Oswego, IL, agreed to pay a $17,000 civil money penalty for improper use of FHA’s name in certain correspondence and for failure to notify HUD of a consent order entered into by the bank and federal and state banking regulators. The MRB voted to ...
A California-based mortgage lender and six senior executives have agreed to pay $12.7 million to the Securities and Exchange Commission to resolve allegations they schemed to defraud investors in the sale of residential mortgage-backed securities with a Ginnie Mae guarantee. The SEC complaint alleged that, from March 2011 to March 2015, Ginnie Mae issuer First Mortgage Corp. and its top executives pulled current performing loans out of Ginnie Mae MBS. The issuer falsely claimed that the loans were delinquent so that it could recycle them as newly issued MBS and sell them at a profit. FMC allegedly issued Ginnie Mae MBS prospectuses with false and misleading information by using a Ginnie Mae rule that allowed issuers to repurchase seriously delinquent loans. In addition, the SEC complaint alleged that FMC deliberately delayed depositing checks from borrowers who had been behind on ...
The FDIC said that acting as a receiver of the failed banks it “may professionals and entities whose conduct resulted in losses to those institutions…”
A strong spring home-buying season and continued low rates are feeding optimism among selected lenders, fueling hopes that healthy production in May will lead to an even better June, according to interviews conducted by Inside Mortgage Finance. “May was bigger than April by 10 to 15 percent at both Skyline and New Leaf,” said Bill Dallas, CEO of Skyline Lending, Calabasas, CA. (New Leaf is the wholesale affiliate.) Not too long ago, Dallas wasn’t feeling all that optimistic about 2016. But that was then. “The year started out...
Wells Fargo, the nation’s top-ranked mortgage lender, appears to have escaped unscathed from the scrutiny the Consumer Financial Protection Bureau directed toward a former loan officer, an investigation which resulted in an $85,000 fine and a one-year ban from working in the mortgage industry. Last week, the CFPB announced a consent order with David Eghbali, formerly an LO for Wells’ Wilshire Crescent branch in Beverly Hills, CA, from November 2007 through July 2015. The bureau accused him of referring a substantial number of loan closings to a single escrow company, New Millennium Escrow, Inc., which allegedly shifted its fees from some customers to others at his request. “In exchange for the flexibility to shift fees from some loans to others, respondent [Eghbali] referred...
A dispute over rule interpretation between the Department of Housing and Urban Development and its inspector general regarding the use of gift funds and premium pricing in downpayment assistance has FHA lenders concerned about potential liability and unnecessary legal costs. Last week, HUD Deputy Secretary/FHA Commissioner Edward Golding sought to allay lender concerns by refuting the IG’s position on lender use of downpayment assistance programs sponsored by state housing finance agencies. In a memo to the industry, Golding upheld...
Wells Fargo and JPMorgan Chase recently launched programs to deliver low-downpayment mortgages to Fannie Mae that differ from the government-sponsored enterprises’ recent expansion into high loan-to-value financing. Both banks introduced new 97 percent LTV programs they believe are easier to use than the GSE initiatives and, for certain borrowers, a better choice than FHA financing. Wells Fargo’s “yourFirstMortgage” requires a minimum of 3 percent downpayment for fixed-rate mortgages. The company will consider FICO scores significantly lower than other similar high-LTV programs, to as low as 620, along with debt-to-income ratios up to 45 percent. Factoring in nontraditional uses of credit such as rent, utility bill payments and tuition is...
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