The quality control team at Fannie Mae identified “red flags” that could indicate borrowers have mischaracterized whether they’re seeking a mortgage for a primary residence or for a second home or investment property.

With Rep. Patrick McHenry, R-NC, no longer in Congress, legislation to limit trigger lead activity could see a boost; baby boomers expected to pass along home equity to heirs; two banks reposition portfolios; Clever Real Estate adds servicing clients.

Only two institutions among the top five banks reported an increase in SFO in the third quarter. (Includes data table.)

Investments in technology are helping Mr. Cooper reduce its servicing costs and allowing the industry’s largest servicer to place competitive bids on servicing portfolios.

Fannie Mae found that most mortgage lenders think it would be valuable to simplify and standardize closing cost line-item descriptions.

A new study from J.D. Power showed that mortgage servicers could better meet customer demands by implementing online chat and AI technologies into their workflows.

Lenders, servicers and tech vendors are touting their latest products that include AI; many borrowers don’t appear to be ready to embrace AI in the mortgage process; and a handful of non-AI announcements.

Bulk sales of agency mortgage servicing rights shifted to prepayment-protected coupons of 4% or less, while transfers of refinance-rich MSR slowed. (Includes three data tables.)

Loan performance slightly deteriorated in agency mortgage-backed securities during the third quarter, with delinquencies increasing across all late-payment categories. (Includes data table.)

Lower interest rates bring refi opportunities; borrowers experience frustration at closing; improvements at Provident Funding Associates; Spanish translation efforts; tech firm acquires mortgage brokerage.