Cart

Inside Mortgage Finance

November 11, 2005

View Archived Issues

U.S. Court Revives Legal Split Over Whether an MI’s Higher Prices for Higher Risk Are an Adverse Action

A federal district court in Pennsylvania has ruled that a borrower who is offered a higher rate on a mortgage insurance policy based on an unfavorable credit report is not entitled to an adverse action notice under the Fair Credit Reporting Act if the borrower did not deal directly with the insurer. While defendant Radian Guaranty applauded the decision, it also brought back the uncertainty that was thought to have... Read More

MBA Endorses Data Security Bill That Would Preempt State Laws

Mortgage lenders would get new marching orders on how to notify consumers if there is a breach in their data security under legislation taking shape on Capitol Hill, but lobbyists are endorsing a bill that would set a uniform national standard. The Mortgage Bankers Association this week submitted written testimony in support of a bipartisan bill, H.R. 3997, that would provide a national standard for protecting consumer information and preempt... Read More

OCC Settles Charges of Improper Lending By Bank's Non-conforming Mortgage Unit

The Office of the Comptroller of the Currency reached a formal agreement resolving charges that the non-conforming mortgage subsidiary of Texas-based Laredo National Bank had taken advantage of consumers through a mortgage pre-approval program. In clamping down on certain marketing and disclosure practices, the federal banking agency also exerted its authority to regulate the mortgage lending practices of bank subsidiaries – an area that some critics have said the OCC has… Read More

Index Shift Made Option ARM Market Growth Possible, OTS Finds-But Major Risks Remain

Option ARMs are one of the hottest products on the mortgage market landscape, but lenders and others trying to come to grips with the loan need to consider how they differ from the negative amortization loans originated by thrifts in the past. Earlier negative amortization ARMs were tied to the 11th District cost-of-funds index, which helped thrifts match funding for a product that was largely held in portfolio. But today’s… Read More

New Private MI Production Edges Higher in 3Q05, But Share of Overall Mortgage Market Still Sliding

Private mortgage insurers posted a tidy 8.1 percent increase in industry-wide production of new primary MI volume during the third quarter, according to a new analysis by Inside Mortgage Finance. Private MIs also continued to grab a bigger share of the total insured mortgage market, as they showed a lot more agility in adapting to the booming alternative mortgage business than either the FHA or VA. ... Read More

Lenders Face Uncertainty in Post-HMDA Period as Tougher Enforcement, Class Action Suits Loom

Mortgage lenders gathered at the Consumer Bankers Association’s annual fair lending conference this week came away with more concerns than before about what the 2004 Home Mortgage Disclosure Act data and its new pricing information reveal and how to deal with its consequences. Regulators speaking at the CBA meeting confirmed what the Federal Reserve Board already revealed in its September analysis of the 2004 data– that there are lending disparities… Read More

MPF Number Higher in 3Q05 than 2Q05, But Program Stuck in Yearly Decline

The Federal Home Loan Banks’ flagship mortgage program showed some signs of life in the third quarter, but the two-year downward trend is continuing for the Mortgage Partnership Program. According to statistics released this week, the MPF program funded $2.6 billion in mortgages during the third quarter of 2005. That represents a 36.8 percent rise from the $1.9 billion reported for 2Q05, which followed $2.9 billion in volume for the… Read More

Strategic Alliances Between GSEs and Top Lenders Remained Strong in 2004, HMDA Data Show

Many of the top mortgage originators in the market maintained strategic alliances with Fannie Mae and Freddie Mac that influenced where they delivered their new conforming loan production, a new analysis of 2004 Home Mortgage Disclosure Act data reveals. But those strategic alliances between lenders and the government-sponsored enterprises have clearly begun to wane in 2005. ... 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