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Volume 21 - Number 19

September 22, 2017

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Mortgage Brokers Face Uphill Challenge in Jumbo Market, Make Gains Elsewhere

The wholesale-broker channel accounts for a relatively small amount of new business in the jumbo mortgage market, according to a new Inside Mortgage Trends analysis of lender surveys. Brokers accounted for just 4.6 percent of jumbo originations during the second quarter of 2017, although volume was up 13.7 percent from the first three months. The problem is that jumbo lending by a diverse sample of mortgage lenders was up 19.9 percent overall, meaning ... [Includes three data charts]

Underwriters Experiment with ‘Alt’ Data

A number of lenders outside of the mortgage market are starting to rely on alternative data to help make underwriting decisions. The Consumer Financial Protection Bureau is also encouraging use of such alternative data sources, which could prompt adoption by more lenders. Speaking at the ABS East conference produced by Information Management Network this week in Miami Beach, Joanne Gaskin, a senior director at FICO, said some lenders are relying on ...

CMG Does ‘Crowd Funding’ for Downpayments

CMG Mortgage, San Ramon, CA, has launched a new service called HomeFundMe that is geared toward helping loan applicants gather up enough money for a downpayment – using the Internet, of course. There’s a catch though: applicants who use the “crowd funding” platform have to take out a mortgage with CMG, which bears the name of its founder and CEO Chris George. In a recent interview with Inside Mortgage Trends, George was reluctant to estimate how much money ...

Lending Process a Key Risk Factor

Lenders with better-than-average origination practices tend to produce mortgages with less default risk across different loan products, according to a new study sponsored by the Mortgage Bankers Association. “Managing Mortgage Product Development Risk” focuses on several key issues in risk layering, including the morphing of loan products designed for one type of borrower to a different population, and the added risk of sloppy processing systems. The paper, authored by Clifford Rossi ...

Bank Retail Production Up in 2Q17, Sales Down

Commercial banks and thrifts reported a solid increase in retail mortgage originations during the second quarter of 2017, but loan sales were down from the previous period. Banks originated $83.98 billion of single-family mortgages through their retail mortgage-banking platforms during the second quarter, a 16.7 percent increase from the first three months of the year, according to an Inside Mortgage Trends analysis of call report data. The total fell well short of ... [Includes one data chart]

Multiple Roadblocks Stymie Digital Lending

Most of the hindrances to wider adoption of digital mortgages have to do with the many moving parts associated with the mortgage transaction as well the numerous parties involved with it, and not the legal landscape, according to one top attorney. “The common misconception is that there are a lot of legal roadblocks [to paperless lending]. And there certainly are some. There are some states that don’t support it as fully as would be necessary,” Scott Samlin, a partner with ...

Tech Helps Lenders Avoid Costly TCPA Lawsuits

Lawsuits arising from violations of the Telephone Consumer Protection Act have increased tremendously over the last couple of years and technology has been trying to stem the tide. By all accounts, TCPA litigation is out of control, wrote Charles Insler, an attorney in the St. Louis office of Hepler Broom, in an analysis of TCPA litigation trends earlier this year for the American Bar Association. Quoting from a 2016 opinion from the Seventh Circuit, Insler noted that TCPA litigation has ...

Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

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