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Inside Mortgage Finance

April 14, 2006

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Home-Equity Lending Boomed in 2005, Pumped By Both HELOC and Piggyback Seconds

Originations of home-equity loans jumped 12.2 percent last year, paced by heavy production of revolving lines of credit and the growing piggyback second mortgage business, according to a new analysis by Inside Mortgage Finance. An estimated $359 billion of home-equity loans were originated in 2005, representing about 11.5 percent of total production. The biggest chunk of that volume came from new home-equity line of credit originations by banks, thrifts and other portfolio lenders, estimated at… [One data table included] Read More

Industry Groups Hope Federal Regulators Heed Call for Changes in Proposed Guidance for Alternative Mortgages

Federal financial institutions regulators have no plans of curtailing or imposing limits on institutions with a proven track record in originating and managing the risks associated with nontraditional mortgages, but the proposed guidance for these products is causing great concern in the industry. There is a sense of urgency among federal regulators to get a final guidance out before the interest rates on a large number of these so-called exotic mortgages reset in 2007.… Read More

Private Conduit Volume in Early 2006 Up from Year-Ago Levels, Familiar Names at the Top

A sturdy $245.09 billion of new non-agency mortgage securities were issued by private conduits during the first three months of 2006, according to a new ranking from the Inside Mortgage Finance MBS Database. That was up a solid 27.9 percent from private conduit issuance during the first quarter of 2005. Issuance includes prime, Alt A, subprime and second-mortgage securitization by Wall Street investment banks and mortgage lenders that have wholesale correspondent programs. Deals backed by… [One data table included] Read More

Loan Originators – Not Just Issuers – Feel the Pinch of Massive New SEC Disclosure Regime

A complex disclosure paradigm created last year for securities issuers is impacting companies that originate and service mortgage loans, which find themselves increasingly under pressure to provide information on their business practices and those of the vendors that they do business with. The Securities and Exchange Commission last year finalized a new rule – called Regulation AB –that has dramatically ratcheted up the disclosure requirements for firms that use the non-agency MBS market. For… Read More

Geographic Differences, Increasing Defaults And Mortgage Fraud Growing Concerns

The fraying of the years-long boom in mortgage lending and housing activity is a top concern among lenders and investors as the market looks forward to a measurable downturn in origination volume and house price appreciation. While many analysts have raised concerns about the scorching housing markets on the East and West coasts, one analyst at last week’s Housing Finance Summit sponsored by the Opal Financial Group pointed to areas where price appreciation has been… Read More

OFHEO Seeks Help in Updating its Strategic Plan for Regulating GSEs

The Office of Federal Housing Enterprise Oversight is seeking public input as it embarks on a triennial ritual of updating its strategic plan for regulating safety and soundness at Fannie Mae and Freddie Mac. Federal agencies such as OFHEO are required to draft strategic plans every three years. The agency will be working on its fourth strategic plan, which would be the basis for its regulatory efforts for the government-sponsored enterprises through 2011. … Read More

Credit Unions Record Modest Gains in Mortgage Originations in 2005; Navy Federal Leads the Way

Federally-insured credit unions reported $60.44 billion in mortgage originations in 2005, a 5.7 percent increase from the previous year, according to data from federal regulators. Credit unions still account for a very modest 1.9 percent of total originations. Navy Federal ranked as the top credit union mortgage lender last year, even though its origination volume dropped 7.7 percent from 2004. The institution’s $5.39 billion in new lending gave it an 8.9 percent share of the… [One data table included] Read More

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