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Inside Mortgage Trends

August 2, 2013

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HARP Production Slows as Interest Rates Edge Higher, Focus Turns to Homebuyers

Mortgage lenders saw a noticeable decline in refinancing of underwater Fannie Mae and Freddie Mac mortgages during the second quarter of 2013, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. Overall refinance volume at the two government-sponsored enterprises declined by 13.6 percent from the first quarter of 2013 to the second, although refi activity continued to make up a huge 75.8 percent of GSE business. Deliveries of Home Affordable Refinance Program ... [Includes two data charts] Read More

Loan Retention Strategies a Win for Lenders

Mortgage lenders and servicers are dealing with increased regulatory scrutiny, compressed margins and a competitive origination environment. As interest rates continue to rise, firms are finding that many of the loans they currently service may no longer qualify as suitable refinance candidates. Additionally, as property values stabilize, a growing number of borrowers may become easy targets for other lenders. To address these issues, Rumson, NJ-based Loan Value Group has developed a package of ... Read More

Ocwen’s India-Based Operation Seen as Savvy

Ocwen Financial Solutions Private Limited, a vendor based in India, received high marks from Morningstar Credit Ratings. OFS is a subsidiary of Ocwen Financial that handles servicing for more than 50 clients. Morningstar said the vendor’s metrics meet or exceed industry standards for customer relationship management, homeownership retention and delinquency management. “Ocwen India, with its multiple servicing platforms, extensive and ... Read More

Seasonal Factors Push Delinquencies Higher

Mortgage delinquencies increased by nearly 10 percent in June compared with the previous month, following five months of declines, according to Lender Processing Services. The increase is seen as a seasonal move, with delinquencies expected to continue to decline over the long-term. LPS last week estimated that the total delinquency rate, loans 30 or more days past due but not in foreclosure, was 6.68 percent as of the end of June, up from 6.08 percent in May. Foreclosures also increased ... Read More

Auditor Identifies Recurring Compliance Problems

Of all the compliance problems uncovered during quality-control audits and reviews of mortgage loans, three are recurring with consistency during the origination phase and originators should pay close attention, said a quality-control specialist. Tommy Duncan, chief executive officer of Quality Mortgage Services and a certified mortgage technologist, said errors continue to happen even though lender compliance has improved from previous years. Overall, regulatory compliance on the ... Read More

Technology Will be Essential to QM Compliance

The complexities of the three percent points-and-fees calculation for the Consumer Financial Protection Bureau “qualified mortgage” standard under its ability-to-repay rule pretty much means that technology is going to be critical in order to be compliant. According to Michael Chan, vice president of ComplianceEase and an expert on compliance technology, the bureau’s QM standard will usher in a whole new paradigm. “Come Jan. 10, 2014, our industry again will be re-defined,” Chan told participants of a webinar ... Read More

New Rules Pose Big Challenges for Servicers

The Consumer Financial Protection Bureau’s new criteria for error notices and information requests present considerable challenges to mortgage servicers, according to a new PricewaterhouseCooper analysis. Implementing the changes will require careful review and updates to systems, processes and responsibilities to ensure servicers’ compliance with the new standards, said PwC. The new procedures for error notices and information requests are based on existing rules for responding to qualified written requests ... Read More

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