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Volume 22 - Number 12

June 8, 2018

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Bank MSR Holdings Decline Again in 1Q18, But Valuations Hit Record High

Commercial banks and savings institutions once again reduced their holdings of mortgage servicing rights during the first quarter of 2018, according to an Inside Mortgage Trends analysis of call-report data. [Includes one data chart.]

MSR Market Looks Strong But Issues Remain

Trading in mortgage servicing rights is as good as itís been for years, but it remains a small market full of pricing and transactional irregularities, according to industry experts speaking on a panel at the secondary market conference sponsored by the Mortgage Bankers Association last month.

The Going Gets Tough, the Tough Cut LO Pay

With razor-thin production margins becoming the norm this year, some originators are thinking about, or moving ahead with plans to trim the compensation levels of their most valuable asset: loan officers.

ATR Reduces Frequency of Loan Application Fraud

The incidence of defects in mortgage loan applications has decreased significantly in the last five years, according to First American Financialís Loan Application Defect Index.

Retail Channel Gained Share in Some Markets

Retail loan production gained share in the jumbo and government-insured markets during the first quarter of 2018 but lost a little ground in the conventional-conforming space, according to survey data compiled by Inside Mortgage Finance. [Includes two data charts.]

Lenders Seek Approval to Claim New Deduction

Are mortgage lenders in the financial services business? The answer from the Internal Revenue Service on that question will determine whether lenders organized as pass-through entities can take a significant deduction included in the Tax Cuts and Jobs Act.

Strong Demand for Home-Purchase Mortgages

Originations of purchase mortgages are expected to increase this year even though interest rates and home prices continue to rise. ďThe underlying demand for buying a home is holding up, and will continue to do so, as long as the economy is generating solid job and income growth,Ē said Sam Khater, chief economist at Freddie Mac.

Poll

On average, how much of a commission does your shop pay loan officers per loan they originate ?

25 to 50 basis points.

18%

51 to 100 basis points.

42%

101 to 150 basis points.

15%

North of 151 basis points. (We expect a lot.)

13%

We pay salary, not commission.

13%