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Inside Mortgage Trends

March 18, 2016

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Seller Repurchases Tumble Again in 4Q15; Freddie Still Has Back-Up of Old Cases

The rash of Fannie Mae and Freddie Mac buyback demands that ravaged the mortgage industry a few years ago continued to ease in the fourth quarter of 2015, according to a new Inside Mortgage Trends analysis of repurchase disclosures by the two government-sponsored enterprises. And although the focus of new GSE buyback demands continues to shift to newer books of business, Freddie still reports a relatively high volume of ... [Includes two data charts] Read More

Mortgage Banking Profits Soften in 4Q15

Mortgage banking ended a solid year of profitability in 2015 with a final quarter weakened by slumping production volume and added costs from the implementation of new TRID integrated disclosures. Average firm pretax income in the fourth quarter – for lenders of all sizes – was $1.190 million, according to the Mortgage Bankers Association’s latest Mortgage Banking Performance Report. That was down 30.0 percent from the third quarter and even further off ... Read More

Spring Is at Hand, Boosting Demand for LOs

The employment market for retail loan officers – as well as loan brokers – continues to look promising, provided that interest rates remain low this spring and nothing comes along to spook new homebuyers. Moreover, new employment figures from the Bureau of Labor Statistics seem to bear this out. In January – the latest figures available on residential finance hiring – mortgage brokerage firms nationwide added 2,100 full-time staffers, bringing total employment in the niche to 81,600, the highest reading in several years. Read More

GSEs Dominate Condo Lending, Many First-Timers

The government-sponsored enterprises accounted for the bulk of financing for mortgages on condominiums and co-op units in 2015, according to a new Inside Mortgage Trends analysis of loan-level disclosures from Fannie Mae and Freddie Mac, along with data from the FHA. Some $76.01 billion in agency condo/co-op mortgages were funded in 2015, with the GSEs accounting for 96.0 percent of the volume. Purchase mortgages ... [Includes one data chart] Read More

Banks Using Technology to Differentiate Themselves

Evolution and innovation are usually double-edged swords – and that’s certainly proving to be true when it comes to technology and financial services. New research from DBRS finds that banks are increasingly using technology to differentiate themselves and to enhance the customer experience. But this market upgrade comes with a cost: smaller players with less financial wherewithal are being left further behind. The first main point DBRS analysts made ... Read More

Gain on Sale Up. Will TRID Spoil the Party?

The mortgage lending industry appears to be having a strong first quarter of the year so far, profitability wise, with gain-on-sale margins up strongly – at least until more effects kick in from the Consumer Financial Protection Bureau’s TRID integrated disclosure rule, according to a new analysis. “Our gain-on-sale index indicates margins rebounded sharply in first quarter 2016, up 22 percent quarter-over-quarter on average,” said analysts at Compass Point Research & Trading ... Read More

PMI Price Changes Could Be Win or Lose for FHA

Some observers say the latest rate adjustments by private mortgage insurers will not have a significant impact on FHA business nor would they compel the government agency to alter its mortgage insurance premiums or policy. Others say the pricing change could trigger a race to the bottom as risks of MIP cuts increase materially. Six private MIs have announced adjusted rates over the last couple of months inresponse to new eligibility standards set by ... Read More

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