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Inside Mortgage Finance

May 12, 2016

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Private MIs Lose Some Ground to Government Mortgage-Insurance Programs in Early 2016

New primary mortgage-insurance activity was down slightly during the first quarter of 2016, with private MIs seeing the biggest slump in new business, according to a new analysis and ranking by Inside Mortgage Finance. A total of $144.11 billion of home loans were originated with some form of MI coverage during the first three months of this year, a 3.7 percent decline from the fourth quarter of 2015… [Includes four charts] Read More

Latest Premium Cuts Make Loans with Private MI More Attractive to Some Borrowers than FHA Loans, Says UI

The recent adjustment in private mortgage insurance pricing could potentially draw high-quality borrowers away from FHA, leaving the agency with a disproportionate share of higher-risk borrowers, according to new research from the Urban Institute. The private MI premium cuts likely will increase the government-sponsored enterprises’ share of low-downpayment, high-credit borrowers, wrote authors Laurie Goodman, director of UI’s Housing Finance Policy Center, and fellow researcher Bing Bai. Announced by individual major private MI companies, the reductions would… Read More

Servicing Auctions Gather Steam But Concerns Remain About MSR Pricing and Prepayments

Declining interest rates have thrown a monkey wrench into mortgage servicing sales this year, but investment bankers and advisors are seeing an increase in new auction notices, even though pricing remains muted. Moreover, some market-makers expect an eventual boom – but only if interest rates would rise a bit and stay that way. “There hasn’t been a lot of activity of late… Read More

Is ‘Zero Capital’ for the GSEs Really a Non-Issue? Hey, There’s A Bunch of ‘DTAs’ Left at the Two…

In almost 19 months, the capital cushions at Fannie Mae and Freddie Mac will fall to zero, which means if either government-sponsored enterprise (or both) suffers a net loss in a quarter, Uncle Sam will need to step in and supply cash to get the afflicted party back to zero. Depending on whom you talk to in the mortgage industry, a capital draw from Treasury could set off irrational behavior on the part of Congress or it’s much ado about nothing. … Read More

State Regulators Focus on Servicing, But No Timeline for Nonbank Capital Standards Proposed Over a Year Ago

State regulators focused much of their mortgage-related supervisory efforts in 2015 on servicing examinations enforcement, according to the Multi-State Mortgage Committee. State regulators also continue to work on capital requirements for state-licensed nonbank servicers, but there’s no timeline for when further action might occur. .... Read More

CFPB Focused on Fair Lending Risks Related To Redlining, Underwriting, Pricing, Servicing

Many mortgage lenders continue to fret about the Consumer Financial Protection Bureau’s integrated disclosure rule, but the bureau’s latest report to Congress suggests they should also pay attention to fair lending issues, including Home Mortgage Disclosure Act data integrity, along with mortgage servicing. “Mortgage lending continues to be a key priority for the [CFPB’s] Office of Fair Lending for both supervision and enforcement, with a focus on HMDA data integrity and potential fair lending risks in… Read More

Treasury Department Says Ongoing Monitoring of Internet Mortgage Lenders Could Benefit New Sector

Although still in its infancy, the number of mortgage loans originated by online marketplace lenders is growing and should be monitored, according to a white paper released by the U.S. Treasury Department this week. The paper, which includes research and industry recommendations in the online lending space, including mortgage loans, was based on responses to Treasury’s request for information on the topic. Acknowledging the benefits and risks of online lending, the study emphasized the need for… Read More

Quicken Loans CEO Says Company Will Not Settle DOJ False Claims Charges, Wants Trial by Jury

Quicken Loans CEO Bill Emerson ruled out any possibility of settlement with the Department of Justice over allegations of filing false claims on flawed FHA-insured mortgage loans, preferring instead a jury trial. During a recent interview with CNBC’s Squawk Box, Emerson said settlements are a business model that has worked well for the DOJ in its effort to recover taxpayer losses due to questionable FHA lending practices. Quicken Loans, however, will not cave in to agency… Read More

Trade Groups Seek Action from Congress on the Future of Appraisal Regulation, Including State Issues, Competition

Trade groups involved in home sales and appraisal issues are calling for a hearing in Congress regarding the future of appraisal regulation. The American Bankers Association, the Appraisal Foundation, the Appraisal Institute, the National Association of Home Builders and the National Association of Realtors made the requests in letters to Congress. … Read More

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