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Most of the Megabanks Saw Mortgage Profits Increase Firmly in 2Q; A Barometer for the Rest of the Industry?

July 17, 2014
The nation’s megabanks reported fairly strong mortgage earnings during the second quarter thanks to a jump in new originations, robust servicing revenue and expense cuts. If the results reported by Wells Fargo, JPMorgan Chase, Bank of America and Citigroup are any indication, the industry may be rebounding from a rough stretch in late 2013 and early 2014. But the first quarter of this year was so bad – and originations so weak – that lenders had no place to go but up. Larry Charbonneau, a warehouse lending analyst, said...
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GSE MBS Business Activity Rebounds in Second Quarter

July 16, 2014
John Bancroft
Year-to-date MBS issuance by Fannie and Freddie was down 60.9 percent from the first half of 2013.
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Ocwen Partners with Consumer Advocates to Track Issues Borrowers are Having with the Servicer

July 16, 2014
Brandon Ivey
Ocwen's consumer council will consider issues such as principal reduction loan modifications, reducing urban blight, helping minorities and improving language access to borrowers with limited English proficiency.
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BofA the Latest Megabank to Report a Strong Rise in Originations

July 16, 2014
Paul Muolo
Residential loan production is looking up at Bank of America. But can it last?
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Federal Reserve Plan Means More Due Diligence on Third-Party Servicers

July 16, 2014
George Brooks
Morgan Stanley’s regulatory action plan supplements the firm’s global risk-management program for third-party servicers, which is currently in place.
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Wells Fargo Securities Downgrades Nationstar, Walter; Says Stocks May Plunge

July 16, 2014
Paul Muolo
Analysts at Wells Fargo Securities believe there could be a huge downside to owning shares of Nationstar and Walter Investment.
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Short Takes: Strong Earnings for MGIC, But a Warning Too / Non-QM to the Rescue? / Ocwen in Stock Deal with Ross / Stonegate Mortgage Gets a ‘Neutral’ Rating / Canada in for a Big Housing Correction?

July 16, 2014
Brandon Ivey, Paul Muolo, and Sherry Muolo
MGIC is operating with each GSE as an eligible insurer under a remediation plan. In trading Wednesday, its share price was down 9 percent…
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JPM Ponders Leaving FHA Sector; Megabank Reports Weak Production Figures

July 15, 2014
Paul Muolo
Is Jamie Dimon mad at the FHA? Tuesday morning he told analysts that "the real question" is whether the bank should be in the FHA business at all.
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FHA Lenders Find Glitches in the Agency’s New Loan Portal

July 15, 2014
George Brooks
Mortgage firms are concerned they may be sanctioned or penalized if they make a mistake, but the FHA at this time likely will not take any action because the system is so new.
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To Avoid QM Landmines, Some Wholesalers Cap Fees to Brokers at Under 2 Percent

July 15, 2014
Paul Muolo
“If the cap is 2.75 percent, it doesn’t leave much, but you have to keep in mind that the lender is building ‘everything else’ into the note rate,” said Marc Savitt.
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