Cart

Inside Mortgage Trends

November 21, 2008

View Archived Issues

Production Income Dropped Sharply In 3Q08, Servicing Profits Rebound

Mortgage bankers reported a steep drop in profitability from their loan origination activities during the third quarter of 2008 as overall production volume declined sharply, according to a new analysis by Inside Mortgage Profitability. Seven major lenders that report detailed financial results on their mortgage banking operations posted a... [Includes one chart and one graph] Read More

Fannie’s Aggressive Buybacks Hurt ResCap

Mounting losses are compelling Fannie Mae and Freddie Mac to be much more aggressive in demanding buybacks of troubled mortgages. And while the increasing consolidation of their business among a shrinking handful of top lenders has blunted the success of that approach somewhat in dealing with the top tier of players, the wobbly financial condition of GMAC Residential Capital is leaving... Read More

Average Cost Pricing Survives Final RESPA Rule

Mortgage lenders and other settlement service providers will have pricing flexibility and fewer recordkeeping burdens under a final Real Estate Settlement Procedures Act rule that allows average cost pricing. Volume discounts, however, have been dropped from the rule.The average-cost pricing provision, renamed “average charge” under the final RESPA rule, will lower... Read More

Servicer Advances Prove to be Costly Burdens

Mortgage servicers that don’t enjoy an affiliation with a bank or thrift are increasingly having problems finding funding to cover their servicer advances, which several sources said could become a “big, big problem.” Tom Deutsch, executive director of the American Securitization Forum, says the Treasury Department’s Troubled Asset Relief Program could be tapped to provide such... Read More

Lender Processing Services Sees Increased Revenue

Mortgage lenders and investors are struggling to turn a profit in an increasingly difficult environment, but some third-party providers such as Lender Processing Services, Inc., are reporting attractive earnings despite all the upheaval in the market. “LPS had strong results in its first quarter as a stand-alone company despite challenging market conditions and a difficult... Read More

Banking Agencies Support AVM Use

Federal banking regulators last week proposed a comprehensive update to their appraisal policies that includes new guidance on an increasingly accepted mortgage technology: automated valuation models. The interagency guidelines, which had not been updated since 1994, now feature a framework to help lenders decide when AVM systems are appropriate in the appraisal process. The proposal was... Read More

Conflict Alerts Added to FACTA System

Interthinx, a California-based vendor and provider of risk mitigation and regulatory compliance tools, made additions to its FraudGUARD system that will help lenders identify “non-arms length” mortgage transactions, which the company said are serious indicators of potential mortgage fraud. “A non-arms length transaction is one between family members, or when a personal or business... Read More

Rule Changes Mean Multiple Systems Upgrades

Mortgage lenders may have to rewrite their consumer disclosure systems more than once as different federal agencies unveil new compliance requirements. A new final rule issued by the Department of Housing and Urban Development under the Real Estate Settlement Procedures Act will force lenders to update their systems for generating good faith estimates and... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results