Slowing growth, looser underwriting and increasing regulation are likely to tap the brakes on the joyride U.S. auto lenders have enjoyed in recent years, according to recent research from Standard & Poor’s Ratings Service. “Despite the robust performance of the auto sector in the past few years, we believe bumpier roads may lie ahead,” S&P Credit Analyst Igor Koyfman said in a recent report. “As lenders compete for market share, they have extended loan terms and increased the average financing amount, while yields have declined.” Lenders have also increased...

According to figures compiled by Inside Mortgage Finance, Provident ranks eighth nationwide among all table-funders, based on first quarter 2015 production.

Most of the changes are in the portion earmarked for direct endorsement lenders, which often have been the target of False Claims Act lawsuits filed by the Department of Justice...

“These are serious loan officers,” he noted. Just how serious? According to the show’s website, some of the top producing LOs in attendance earn between $500,000 and $5 million…

A broad regulatory relief bill pushed by Sen. Richard Shelby, R-AL, passed the Senate Committee on Banking, Housing, and Urban Affairs last week on a 12-10 party-line vote. While Democrats oppose portions of the bill, they are seeking changes to standards for qualified mortgages similar to those proposed by Shelby. The Financial Regulatory Improvement Act of 2015 would establish a qualified-mortgage safe harbor for certain loans held in portfolio. The main difference between ...

Servicing on four non-agency mortgage-backed securities will be transferred from Ocwen Financial to Select Portfolio Servicing, according to Moody’s Investors Service. Investors in the MBS voted to transfer servicing on the 3,490 mortgages in the deals. The Securities and Exchange Commission is investigating Ocwen and potentially other servicers regarding the use of collection agents. In a quarterly report filed last week, Ocwen said it received a letter from ... [Includes five briefs]

An FHA proposal aimed at clarifying loan-certification rules is a step in the right direction but it needs more work, according to industry observers. Lenders declined to comment on the proposed form changes but they all agree that the proposal does not go far enough. The revisions aim to make the language in Form 92900-A (HUD Addendum to Uniform Residential Loan Application) clearer for both borrower and lender. Applicants for an FHA or a VA loan sign the addendum to certify to the government that the information provided by the borrower on the mortgage loan application is correct. By signing the addendum, the borrower certifies that he or she will make payments on the home loan or become indebted to the federal government upon failure to repay the loan. For lenders, signing the form certifies that the loan application meets all of FHA’s insurance requirements. This is where lenders often ...

Security issuances backed by VA loans totaled $35.5 billion in the first quarter of 2015, with VA streamline refinance loans accounting for 57.7 percent, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Approximately $20.5 billion in VA interest rate reduction refinancing loans were securitized during the first three months as borrowers took advantage of lower interest rates.“For the last three to four months, rates have been bottoming out again, and if rates are lower it makes sense to refinance,” said Jon Shrum, vice president of Commerce Home Mortgage, a VA-certified lender in Huntington Beach, CA. An estimated $14.5 billion in VA purchase mortgages also were securitized during period. VA loans comprised 13.1 percent of all loans in Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities. California, Virginia, Texas, Florida and Washington, ... [2 charts]

NTFN Inc., a direct-endorsement lender in the Dallas-Ft.Worth area, may have to indemnify FHA for losses incurred allegedly due to sloppy underwriting. Results of an audit performed by the Department of Housing and Urban Development inspector general found that 23 loans out of the 3,046 FHA loans originated by NTFN from July 2012 through June 2014 were seriously delinquent in the first year. FHA is considering whether to require indemnification. Despite its low FHA origination volume, NTFN was targeted for a compliance audit because its loan default rate was the second highest in its principal area of business during the audit period. HUD auditors attributed the subpar underwriting to the lender’s poor due diligence, failure to perform early payment default and quality control reviews and to not having an adequate quality control system. The unpaid principal balance of the ...

Whistleblowers that bring a False Claim Act claim against an FHA lender based on previous publicly disclosed information have no standing, according to a recent federal district court ruling. Judge Jack Zouhary of the U.S. District Court for the Northern District of Ohio dismissed an FCA lawsuit against U.S. Bank because the whistleblower had neither direct nor independent knowledge of the bank’s alleged false claims – two basic requirements for standing in a whistleblower suit. The Advocates for Basic Legal Equality (ABLE), an Ohio-based legal aid group, filed an FCA lawsuit against U.S. Bank for allegedly disregarding and violating FHA regulations. The group accused the bank of filing false claims and collecting payments without evaluating loss mitigation alternatives before foreclosing on properties. According to ABLE, it had consulted with “many people,” whose mortgage loans were ...