Issuers of securities backed by Home Equity Conversion Mortgages created $518 million in new HMBS pools during August, the third largest monthly HMBS issuance this year and the latest month for which HMBS issuance data was available. August’s new issuance total was up slightly from July’s $507 million, according to New View Advisors, which advises financial services clients on capital markets, product development and investment strategies. Ninety-one pools were issued, consisting of 46 original issuance and 45 tail pools. Original HMBS pools are created when a pool of FHA-insured reverse mortgages is securitized for the first time. Tail HMBS issuances are HMBS pools created from the uncertified portions of HECMs that have already had their original HMBS issuance. Tail issuances accounted for about $140 million. Beginning with FY 2014, HECM principal limits were ...
An estimated $336 million out of a $614 million settlement that JPMorgan Chase agreed to pay for not complying with FHA requirements will go towards stabilizing the agency’s ailing Mutual Mortgage Insurance Fund. On Feb. 4, 2014, the U.S. Attorney’s Office for the Southern District of New York took over a whistleblower lawsuit and started an investigation of Chase on behalf of the government for alleged violations of the False Claims Act. The whistleblower or “relator” alleged that Chase, an approved FHA direct endorsement lender, had not followed FHA requirements when underwriting loans, causing the MMIF to incur significant losses when the borrowers defaulted on their loans. The U.S. Attorney filed suit against Chase based on the results of an audit conducted by HUD’s Inspector General that looked into the bank’s underwriting and refinancing of FHA loans. The lawsuit alleged that ...
In the non-QM space, Lake Sunapee Bank serves a large number of self-employed borrowers, medical professionals, high net-worth retirees, and first-time homebuyers.
The supply of 1-4 family mortgage debt declined again in the second quarter of 2014 despite an uptick in whole loans held in bank, thrift and credit union portfolios, according to an Inside Mortgage Finance analysis. The Federal Reserve Board late last week reported $9.855 trillion in single-family mortgage debt outstanding at the end of June. That was down $4.9 billion from March – a scant 0.05 percent decline, but the second straight quarterly downturn. The increase in mortgage debt outstanding in the third quarter of 2013 increasingly looks like an aberration rather than a turning point. The most recent figure is...[Includes one data chart]
Ocwen Financial – once the largest buyer of “legacy” mortgage servicing rights in the secondary market – is mostly sitting on the sidelines these days when it comes to buying new product. According to servicing advisors and industry officials familiar with the company, the nonbank has been selectively bidding on smaller pools, staying away from larger deals. Meanwhile, Ocwen still hopes...
Attorneys for a group of disenfranchised Fannie Mae and Freddie Mac junior shareholders have joined another shareholder group’s motion in federal court asking the government to come clean with all of the documents and records regarding the Treasury’s “Third Amendment” and “net-worth sweep” of nearly all government-sponsored enterprises’ profits. In papers filed last week in U.S. District Court for the District of Columbia, Perry Capital lead attorney Ted Olson asked to join Fairholme Fund’s request for “supplementation” of the record. Both plaintiffs contend the government has failed to provide for court review of the “whole record” as required under the Administrative Procedures Act. “The government is...
The market outside the pristine parameters of the Consumer Financial Protection Bureau’s qualified mortgage offers less-competitive opportunity and potentially sizeable legal risk, according to panelists participating in a webinar sponsored this week by Inside Mortgage Finance. Brian Simon, chief operating officer for New Penn Financial, noted that the regulatory environment makes a move into non-QM lending much more complicated than in the past because the risks for the originator and the purchaser now are greater than they’ve ever been. However, Simon added: “A high degree of difficulty usually results in higher yield and opportunity.” The New Penn executive predicted...
Mortgage lenders reported $1.762 trillion in new purchase-money and refinance originations during 2013 under the Home Mortgage Disclosure Act, according to a new Inside Mortgage Finance analysis of the data released by federal agencies this week. HMDA purchase and refinance originations were down 12.4 percent from 2012, with the biggest decline in refi activity, off 26.2 percent. Purchase-mortgage lending was up in both the government-insured market (up 1.3 percent) and conventional originations (up 32.5 percent). Even with the sharp downturn in business, refinance originations accounted...[Includes one data chart]
Last week, the Senate passed legislation that would extend to state-licensed mortgage companies – and the state regulatory agencies that oversee them – the same kind of protections against waivers of privilege for information provided to the Consumer Financial Protection Bureau that was previously extended to federal agencies that supervise depository mortgage lenders. The measure, H.R. 5062, the Examination and Supervisory Privilege Parity Act of 2014, would require the CFPB to coordinate its supervisory activities with state agencies that license, supervise or examine those who offer consumer financial products or services. Currently under the Dodd-Frank Act, the bureau is only required to coordinate with federal and state banking regulators. The legislation also would provide...
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