loanDepot’s initial public offering of stock – $100 million is the target capital raise – is viewed as a bullish sign for the mortgage industry, especially nonbanks, but don’t expect a long line of imitators, at least not yet. Advisor Joe Garrett, who runs Garrett, McAuley & Co., isn’t quite sure what to make of the recent IPO news, stating bluntly: “I’m sure it will get a lot of ‘wannabes’ hot and bothered.” Garrett noted...
The Consumer Financial Protection Bureau’s new guidance on mortgage services agreements has given the industry little confidence about such arrangements and likely helped push another major lender, Bank of America, to shutter its MSA ventures. BofA decided to the pull the plug on all marketing services agreements it has with realty firms, including RE/MAX. The bank told IMFnews, an affiliated daily service, that it will discontinue all “space rental agreement programs due to recent regulatory developments.” Its MSA agreements will end...
The Consumer Financial Protection Bureau’s decision to ignore more than 40 years of established interpretation of the Real Estate Settlement Procedures Act’s anti-kickback provision would deprive consumers of the benefits of risk retention and do them further harm, warned an industry trade group in an amicus brief. The brief in support of the petitioner in PHH Corporation, et al., v. Consumer Financial Protection Bureau said allowing CFPB Director Richard Cordray’s decision to stand would increase closing costs, make an already lengthy closing period longer, and make the mortgage origination process more confusing for borrowers and lenders. Currently on appeal in federal appeals court in the District of Columbia, the decision issued by Cordray on June 4, 2015, relates...
Private investors in Fannie Mae and Freddie Mac stock are raising concerns about the expansion of risk-transfer activity at the two government-sponsored enterprises, warning that it should not be viewed as the answer to housing reform. The credit-risk transfer programs are often cited as a path to housing finance reform because they bring new private capital to the mortgage business, laying off some of the risk held by the GSEs and, ultimately, by taxpayers. “Some have suggested...
Bank returns on mortgage activities turned sharply negative during the recession of 2007 through 2009 before rebounding and becoming consistently positive by early 2011.
RSS