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Inside Mortgage Trends

June 7, 2013

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BofA Settlement Sends Bank Repurchase Activity to Second Highest Level Ever

Mortgage repurchases and indemnifications soared to a whopping $12.83 billion during the first quarter of 2013, a huge anomalous blip in an otherwise moderating trend. As has been the case over the past few years, industry-wide buyback figures were dramatically skewed by one institution’s settlement. Bank of America recorded a whopping $10.45 billion in mortgage repurchases and indemnifications during the first quarter of 2013, according to a new Inside Mortgage Trends analysis ... [Includes one data chart] Read More

Banks Alone More Reliant on Short Sales

Reports of short sales being the new “order of the day” for servicers appear to be overblown. The proclamations were prompted by a report last week from Fitch Ratings. Banks have indeed increased their use of short sales in lieu of loan modifications when completing loss mitigation on non-agency mortgages. Meanwhile, special servicers largely avoid short sales and short sales on agency mortgages are declining. Short sales performed by the bank servicers on mortgages in non-agency mortgage-backed ... Read More

Opposition to Change for Credit Loss Accounting

Mortgage industry participants are largely opposed to changes to accounting for credit losses proposed by the Financial Accounting Standards Board in December. FASB proposed replacing the current impairment model, which reflects incurred credit events, with a model that recognizes expected credit risks and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. FASB also aims to reduce complexity by replacing the numerous existing ... Read More

Traffic Jam in New York LO Approvals

Residential lenders tend to like the mortgage market in the state of New York because home values there have been steadily improving for years, especially in Manhattan and surrounding areas within a decent commuting distance to the city. But for nonbanks seeking licensing approvals for their loan officers, they would like nothing more than to tell state regulators to take a hike. According to interviews with mortgage executives and some of their attorneys, the Empire State is the pits when it comes to ... Read More

MSR Valuations Begin to Climb in Early 2013

With a turning point in mortgage interest rates and refinance activity in view in the first quarter of this year, banks and thrifts began to mark up the valuations they put on mortgage servicing rights. A new Inside Mortgage Trends analysis of bank call report data shows that the industry serviced some $5.181 trillion of home mortgages for other investors as of the end of the first quarter of 2013. That was down 3.1 percent from the end of last year. As a group, the industry estimated a ... [Includes one data chart] Read More

Recovery Proceeds; Foreclosures, Defaults Lower

Signs of healing and recovery in the nation’s housing and mortgage markets continue to proliferate. Among the most recent evidence of this is that the nation’s foreclosure inventory fell substantially in April from a year ago, according to a new report from CoreLogic. As of the end of April 2013, approximately 1.1 million homes in the U.S. were in some stage of foreclosure, compared to 1.5 million the year before, a year-over-year decrease of 24 percent. The foreclosure inventory was down 2 percent from ... Read More

CA County Finds Way to Adopt PACE

A new financing program for home energy retrofits that leverages home equity is gaining popularity among California homeowners despite efforts by the Federal Housing Finance Agency to discourage lenders from offering such products. Called the HERO program, the initiative was developed jointly by West Riverside Council of Governments and Renovate America, a San Diego-based company that works with local governments in designing low-cost financing programs for home and business owners that want to ... Read More

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