The nation’s banks and thrifts used a combined $406.1 billion in advances as of Dec. 31, 2013, up 26.7 percent from the third quarter and a 21.6 percent increase from the same period a year earlier.
Mortgage banking is an ugly business right now, but lenders are hoping that the first quarter will prove to be the nadir and that better times are ahead.
“Not only will FHA continue to go after the big banks, but they’re going after the mid-sized banks as well,” said Andrew Henscel, whose firm defends originators.
The former acting director of the Federal Housing Finance Agency tendered his resignation from the FHFA last week in order to “seek other opportunities.” Edward DeMarco, who served as the agency’s “temporary” head from September 2009 until January 2014, submitted his resignation – effective April 30 – to his successor, FHFA Director Mel Watt. Far from unexpected, DeMarco’s exit from the agency was seen within many industry circles as inevitable once the Senate confirmed Watt to a five-year term as director.
One ad on the radio sounds like The 60 Plus Association is doing the Lord’s work for the pension funds of fire fighters and policemen. After all, public pensions owned GSE stock prior to the crash and lost a bundle.
Mortgage bankers have been complaining loudly about escalating compliance costs since the CFPB opened its doors in 2011. Some smaller nonbanks have cited those rising costs as one reason they might be forced to merge with better capitalized institutions.
“Watt will want to draw a line of demarcation between him and DeMarco,” said one source. “Going forward, I think we’ll see an emphasis on average credit scores funded and even servicing performance.”
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