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Volume 2018 - Number 3

January 18, 2018

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Nonbanks Expanded Footprint in Agency Mortgage Servicing Market During Fourth Quarter of 2017

Nonbanks will likely account for over half of outstanding agency single-family servicing by the end of 2018 if market trends continue as they have in recent years.

Guild Mortgage Strikes First in What Could Be a Busy 2018 for Mergers and Acquisitions

Guild Mortgage, which ranks 21st among all home lenders, has agreed to purchase Cornerstone Mortgage, St. Louis, marking the first acquisition of 2018, a year in which the rollup of smaller lending shops could be significant.

Most Large Banks Report Production Decline In Fourth Quarter, Except for U.S. Bank

As a group, the largest bank mortgage lenders began reporting sagging mortgage originations in the fourth quarter, though the drop was hardly a disaster.

Lenders Face a Plethora of Changes in Tax Law, Including Revised Treatment of Rate-Lock Commitments and Hedges

The recently enacted Tax Cuts and Jobs Act was pitched as a simplification of the tax code. And while the bill could ultimately reduce some tax-related complexities, lenders are facing sweeping changes this year.

Hensarling’s Panel Advancing More Housing Finance, Regulatory Relief Legislation This Week

The House Financial Services Committee this week was advancing more than a dozen and a half regulatory relief measures as Inside Mortgage Finance was going to press, including some mortgage-related legislation that would expand the qualified-mortgage box for smaller entities and exempt many institutions from the rules and regulations issued by the Consumer Financial Protection Bureau.

Credit Score War Brewing as FHFA, GSEs Explore Alternative Scoring Systems

Fannie Mae and Freddie Mac have been charged with exploring options to update their current FICO credit scoring model and make a decision this year as to whether to make the switch in 2019.

Four Years into CFPB’s Ability-to-Repay Rule, Optimists Hope Non-QM Becomes More Than Niche

The game-changing ability-to-repay mortgage lending rule from the Consumer Financial Protec-tion Bureau took effect four years ago this month. At that time, regulators said there would be plenty of mortgage lending outside the parameters of the qualified-mortgage box. So far, however, that ex-pectation has yet to be realized.

Congress Considers Veteran Protections Against Predatory Refinancing Schemes, Establishes Net Tangible Benefit Test

Bipartisan legislation was introduced last week in the U.S. Senate to protect veterans and service members from predatory serial refinancing by requiring lenders to show the transaction actually bene-fits the borrower.

Fed Ends Servicing-Related Enforcement Actions Against 10 Banks, Levies $35.1 Million in Fines Against Five Servicers

The Federal Reserve Board last week wrapped up enforcement actions against 10 banks and im-posed fines against five of them after “sustainable improvements” in their servicing operations.

Mortgage Market at a Glance, January 19, 2018

Weekly mortgage rates and application survey data.

Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.

33%

No. It’s still difficult compliance/regulatory-wise.

20%

Maybe. It’s under consideration.

33%

Not now. But things could change as 2018 progresses.

13%