Mortgage Lending & Servicing

Browse articles from all of our Newsletters related to Mortgage Lending & Servicing.

October 23, 2017 - IMFnews

Incenter, Phoenix Hit the Market with Bulk MSR Offerings

According to the offering circular, delinquencies on the Ginnie Mae package total 8.19 percent...


October 23, 2017 - IMFnews

Walter Unveils Plan for ‘Prepackaged’ Chapter 11 Bankruptcy

Although Walter will file for bankruptcy, Ditech Financial LLC and Reverse Mortgage Solutions will not...


October 20, 2017 - Inside The GSEs

Fannie MBS Servicing Grew Faster Than Freddie MSR in Third Quarter

Most servicers of Fannie Mae and Freddie Mac single-family mortgage-backed securities saw growth in their servicing portfolios during the third quarter, but a handful of top banks continued to buck the trend. A new Inside The GSEs analysis of MBS disclosures shows $4.629 trillion of Fannie/Freddie servicing outstanding at the end of September. That was up 1.8 percent from the previous quarter, with Fannie (up 2.1 percent) gaining market share on Freddie (up 1.3 percent). Ginnie Mae servicing remained a faster-growing market, with $1.749 trillion outstanding, up 2.2 percent from the end of June. Large banks continued to show tepid interest in the GSE servicing market.


October 23, 2017 - IMFnews

Big Banks Report Decent Production Figures for Third Quarter

For the nonbanks, the bellwethers to watch will be Quicken Loans, Freedom, loanDepot and United Wholesale…


October 23, 2017 - IMFnews

Agency Servicing Transfers Caught Fire in 3Q17, Reshaping MSR Market

In the third quarter, Movement Mortgage was the top seller of MSR assets via the coissuance market…


October 20, 2017 - Inside Mortgage Trends

Older Homeowners Holding More Mortgage Debt

A higher share of Baby Boomers are carrying mortgage debt in retirement than previous generations, prompting concerns about potential foreclosures and other financial issues, according to an analysis by Fannie Mae. “Even with the post-recession acceleration in free-and-clear homeownership, Boomers appear unlikely to attain mortgage-free retirements at the same rate as the predecessor generation,” Patrick Simmons, a director of strategic planning in Fannie’s economic ...


October 20, 2017 - IMFnews

What We’re Hearing: A Good (but Not Great) Year About to End / A Top-10 Lender for Sale? (No) / Will Mel Watt Clear the Air on ‘Zero Capital’? / The Freddie Mac Rumor / Ocwen’s Future May be Now?

Plenty of executives we’ve spoken to the past few months believe the industry is in for a considerable spate of M&A in the year ahead. Then again, we’ve heard that prediction before...


October 20, 2017 - IMFnews

Brokers Wanted to Send a Message to Wholesalers, Starting a ‘BRAWL’

BRAWL chief Tony Casa said if loan brokers want to send a message to firms that operate in both wholesale and retail, brokers should take their business elsewhere.


October 19, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

Weekly mortgage rates and application survey data as well as indexes for ARMs.


October 19, 2017 - Inside Mortgage Finance

Housing Industry Groups No Longer United in Stance on Value of Mortgage Interest Deduction

The mortgage interest deduction, or MID, used to rank with apple pie and motherhood for real estate agents, mortgage lenders and homebuilders. But against the backdrop of an intense effort by Republicans to overhaul the tax code, some groups are showing more flexibility on the issue. Complicating matters is that neither the Trump administration nor key players on Capitol Hill have been explicit or consistent in what they want. The Mortgage Bankers Association wrote to the ...


October 19, 2017 - Inside Mortgage Finance

Industry Supports Carson’s Plan to Work with DOJ on Reducing FCA Risk for FHA Lenders

Department of Housing and Urban Development Secretary Ben Carson is getting good reviews from mortgage industry participants regarding his congressional testimony late last week on program reforms, particularly his strategy for dealing with FHA exposure under the False Claims Act. Industry observers noted an improvement in Carson’s knowledge and understanding of HUD programs since taking office in March. His nomination by President Trump was controversial because ...


October 19, 2017 - Inside Mortgage Finance

Most Servicing Amendments Kick in This Week, Even More Complexity Expected When States Act

Most of the final amendments the Consumer Financial Protection Bureau made to its mortgage servicing rules kicked in late this week, and the biggest challenge firms will have to contend with is the increased complexity. In an interview this week with Inside Mortgage Finance, Nanci Weissgold, a partner with the Alston & Bird law firm in Washington, DC, highlighted which provisions took effect this week and those coming on line next spring, and what they mean for ...


October 19, 2017 - Inside Mortgage Finance

Ocwen’s Departure from the Wholesale Channel Sparks Speculation About a Total Exit from Lending

Ocwen Financial, which continues to work through an array of regulatory settlements, is shuttering its wholesale-broker division, a move that’s sparking speculation about its future as an originator. The strategy shift is curious on several fronts: the disclosure was buried at the bottom of a recent regulatory filing on state settlements; broker-wholesale production accounts for roughly half of the company’s originations; and management not too long ago expressed a desire to ...


October 19, 2017 - Inside Mortgage Finance

Freddie Mac Pushes Back Against Criticism of Its Use of Equifax for Merged Credit Reports

Freddie Mac faced criticism last week from consumer advocates for the way the government-sponsored enterprise’s automated underwriting system handles certain functions involving merged credit reports and Equifax. A story in the New York Times this week detailed how Equifax acted as a “gatekeeper” for certain borrower credit information in Freddie’s Loan Quality Advisor. LQA is a risk and eligibility assessment tool that evaluates loan data to help lenders determine if ...


October 19, 2017 - Inside Mortgage Finance

Brokers Voice Frustrations about ‘Whole-Tail’ Lenders: Wholesale Lenders that also have Retail Operations

Long-running tension between mortgage brokers and retail lenders with wholesale operations ratcheted up recently as a new group urged brokers to stop working with “whole-tail” lenders. Brokers Rallying Against Whole-tail Lending said it coined the term “whole-tail” lender as “a swipe at lenders that offer both wholesale and retail services on paper, when in reality, their primary business objective is to feed stolen prospect information directly to their affiliate companies.” “It is important that ...


October 19, 2017 - Inside Mortgage Finance

Big Banks Report Decent Production Figures for Third Quarter of 2017

It’s still early in the reporting cycle for third-quarter results, but major banks so far have reported solid origination gains from the previous period, but nothing to set the world on fire. In terms of percentage gains, JPMorgan Chase reported a 12.5 percent increase from the second to the third quarter. U.S. Bancorp was up 11.0 percent, Wells Fargo had a 5.0 percent gain and Citigroup reported a 3.2 percent increase. Bank of America mortgage originations were down slightly. The five ...


October 19, 2017 - Inside Mortgage Finance

Agency Servicing Continued Growing in 3Q17, But Top Banks Still Pulling Back

The universe of servicing single-family home loans for Fannie Mae, Freddie Mac and Ginnie Mae continued to expand in the third quarter, but a handful of large banks wanted little to do with it. The three agencies had a combined $6.378 trillion of single-family mortgage-backed securities outstanding at the end of September, up 1.9 percent from the midway point in the year, according to a new Inside Mortgage Finance analysis of agency MBS disclosures. All three ... [Includes two data charts]


October 19, 2017 - IMFnews

Short Takes: Princeton Mortgage Enters Wholesale Arena / Ocwen Settles with Lone Star State / Stipulations Regarding REALServicing / The Original Trademark / Angel Oak Hires Fund Manager

Ocwen settled with Texas regulators as well...


October 19, 2017 - IMFnews

Ocwen’s Departure from the Wholesale Sparks Speculation: An Eventual Sale?

Ocwen’s recent barrage of regulatory settlements, coupled with the sale of the wholesale division and the recent hiring of investment banker Chris Whalen, is sparking talk...


October 19, 2017 - IMFnews

Stearns Reorganizes a Bit, Cuts 159 Jobs in California, but Plans to Rehire in Texas; Seeks LOs

“We continue to be bullish on the business,” said Stearns CEO David Schneider.


October 19, 2017 - IMFnews

Mortgage Due Diligence Firms Open to Working Together to Standardize Reporting

Each due diligence firm applies its own interpretation of compliance...


October 19, 2017 - IMFnews

Freddie Mac Pushes Back Against Criticism on Its Use of Equifax

However, officials at Freddie said the claims regarding the GSE and Equifax lacked context.


October 19, 2017 - IMFnews

Agency Servicing Continued to Grow in 3Q17, Megabanks Show Little Interest

The four megabanks reduced their agency mortgage servicing rights by $59.6 billion during the third quarter…


October 18, 2017 - IMFnews

Short Takes: The Little Guy Gets a G-Fee Break / A Coming Spike in G-Fees? / More Financial Maneuvers by Radian / A Hot Streak for Non-Agency Prime MBS / A Stock Market Crash Warning from Treasury Secretary Mnuchin

Might this suggest that g-fees charges could spike next year when zero hour comes?


October 18, 2017 - IMFnews

U.S. Bancorp Grows Residential Production by Almost 10 Percent

Compared to the same period a year ago, residential loan production declined by 19.6 percent...


October 18, 2017 - IMFnews

Radian Discloses More Pain from Services Unit (Clayton); Tennyson is Out as President

The MI also terminated Jeff Tennyson as president of the unit. No replacement will be named, a spokeswoman told IMFnews.


October 18, 2017 - IMFnews

Arch Continues Re-Insurance Transactions Started by UG; New Issuance the First to Receive a Rating

Mortgages delivered to the GSEs with an unpaid principal balance of $29.30 billion are included in the transaction.


October 18, 2017 - IMFnews

Institutional Investors Reduce Positions in PHH. Meaning?

The disclosures aren’t entirely surprising given that PHH recently wrapped up a generous buyback offer…


October 18, 2017 - IMFnews

Redwood Aims for Jumbos Outside of Banks’ Focus

Redwood’s Choice loan program allows for debt-to-income ratios of up to 49.9 percent while the limit for Select is 43.0 percent…


October 17, 2017 - IMFnews

Short Takes: More Trouble for SoFi & Fintech? / So, Maybe CFPB’s Cordray Won’t Run / Goldman Agrees to Buy Fix-and-Flip Lender / Housing Assistance Council Hires former HUD, USDA Official to Lead the Organization

With fall-out spreading from the turmoil at Social Finance, investors might be thinking twice about so-called “fintech” firms...


October 17, 2017 - IMFnews

Promontory MortgagePath Expands Private-Label Origination Platform

PMP was founded by former Comptroller of the Currency Eugene Ludwig and mortgage industry veteran Bruce Witherell…


October 17, 2017 - IMFnews

Ranked No. 442 as an Originator, Fintech Firm Corrals $457 Million in Financial Commitments

Formed in 2014, LH originated $598 million in 2016, ranking 442nd overall, according to Home Mortgage Disclosure Act figures compiled by Inside Mortgage Finance.


October 17, 2017 - IMFnews

Ocwen Settles With Arkansas, DC, Tennessee; Hatchet Now Buried With 20 Jurisdictions

Investors are still waiting for Ocwen’s biggest outstanding dispute – the one with the CFPB – to be settled, one way or the other.


October 17, 2017 - IMFnews

Ginnie Mae Issuance Topped $120B in 3Q17, the Best Reading of the Year

Ginnie Mae issuers securitized $85.4 billion of purchase loans in the third quarter, falling just short of the record $85.4 billion set in the third quarter of last year.


October 16, 2017 - IMFnews

Short Takes: Large Nonbank Ready to Enter Second-Lien Market / Mortgage Layoffs in California? / The 30th Anniversary of ‘Black Monday.’ Beware? / UWM Rolls out ‘Client Loyalty’ Tool for Brokers / Annaly CEO will Become Chairman, Eventually

A large nonbank is about to enter the second-lien market...


October 16, 2017 - IMFnews

MIAC Sets Auction for Fannie Mae MSR Portfolio

The seller of the MSR package focuses on the California market...


October 16, 2017 - IMFnews

Stearns Lending Reveals it Has a Mortgage Joint Venture with SoFi

Stearns, however, doesn’t service any mortgages for SoFi…


October 16, 2017 - IMFnews

Surprise: Prime Non-Agency MBS Issuance Spiked in the Third Quarter

The nonprime MBS category includes some deals better categorized as Alt A…


October 13, 2017 - Inside FHA/VA Lending

IG Finds HUD Ensured Purchaser Compliance, Needs Improvement

The Department of Housing and Urban Development inspector general praised the agency for ensuring purchasers participating in HUD’s single-family note sales program complied with the terms in their purchase agreements. The inspector general noted, however, the need to improve the requirements in the purchase agreements. The IG found those requirements inadequate due to the lack of formal rules for the note sales program. “If a purchaser chose not to comply with its purchase agreement, HUD lacked assurance that the purchaser would offer homeowners foreclosure avoidance, loan-modification options, and other program requirements,” the IG’s audit report stated. Under the agreement, loan buyers must certify their avoidance of final closure for the required period of time, perform loan modification, and submit quarterly reports on their progress, including results of ...


October 13, 2017 - Inside FHA/VA Lending

HUD Finds IG’s Recommendations On Water Safety Unwarranted

The Department of Housing and Urban Development has requested its inspector general to reconsider certain recommendations intended to toughen safety standards for drinking water in FHA-insured properties. Other lenders or appraisers could interpret imposing stringent requirements on a few FHA lenders wrongly, which could lead to unnecessary water testing simply to avoid future litigation risk, HUD warned in its response to audit findings. HUD disagreed that administrative action is warranted. “Due to potential unintended consequences, [HUD Single Family] does not believe the imposition of sanctions at this time presents a viable alternative,” the department wrote. While making changes to water-safety standards, HUD said it will train lenders and appraisers to ensure compliance with the revised standards. The IG audit came in the wake of a previous audit, which found that ...


October 13, 2017 - Inside FHA/VA Lending

FHA Eases Occupancy Rule for Properties with H4P Financing

The FHA has updated its guidelines for Home Equity Conversion Mortgage for Purchase (H4P) loans to allow lenders to accept loan applications from borrowers without requiring a certificate of occupancy, as well as prior to completion of HECM counseling. The change follows the Sept. 19 effective date of the HECM final rule, which the Department of Housing and Urban Development released earlier this year. The final rule codifies the many policies that are now in place for originating and servicing reverse mortgages, including H4P requirements. According to the revised guideline, an FHA lender may take an initial HECM loan application either prior to or after the completion of HECM counseling. Also, previously, H4P properties were eligible for FHA insurance only when construction was completed and when the local jurisdiction issued a certificate of occupancy or its equivalent, confirming the ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie Reveals Nearly 10 Percent Exposure in Disaster Areas

An estimated 9.8 percent of Ginnie Mae’s business may be potentially at risk due to hurricanes Harvey, Irma and Maria, according to data released recently by the agency. The data represent the number of Ginnie loans and their unpaid principal balance amounts in presidentially declared disaster areas in Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. A total of 1.07 million mortgage loans with an unpaid principal balance of $184.5 billion have been affected. Ginnie Mae’s current mortgage-backed securities portfolio totals $1.9 trillion. The data only refer to the geographic locations of all affected properties underlying loans in Ginnie MBS pools and do not indicate the percentage of those that may have sustained damage during a storm. Hurricane Irma had the highest share of affected loans, 6 percent, while Harvey and Maria accounted for 3 percent and 1 percent, respectively. Irma caused the ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie Mae, VA Announce Joint Task Force to Stop Improper Refis

Ginnie Mae and the VA this week officially announced a joint-agency task force to deal with the loan-churning problem that is triggering faster prepayments in Ginnie mortgage-backed securities pools. Specifically, the task force will scrutinize aggressive and misleading refinancing offers and address loan churning and repeated refinancings. It will also examine critical issues, data and lender behaviors related to refinancing loans, as well as determine the kind of policy and program changes agencies should make to ensure VA refi loans do not pose an undue risk or burden to vets and taxpayers. Both the VA and Ginnie Mae programs work best when market participants use them to provide a benefit to VA borrowers and, ultimately, lower vet’s costs, officials said. The task force has begun examining data and information to ensure refi loans provide net tangible benefits to veteran-borrowers. In addition, the ...


October 13, 2017 - Inside FHA/VA Lending

Carson Open to Excising HECM From Mortgage Insurance Fund

Department of Housing and Urban Development Secretary Ben Carson indicated he is open to the idea of moving the Home Equity Conversion Mortgage program out of the FHA Mutual Mortgage Insurance Fund to stem future losses. Testifying before the House Financial Services Committee this week, Carson said the changes the department has made recently, as well as those currently under consideration, will eliminate most of the program’s problems although residual issues may still linger. Carson acknowledged that the HECM program’s default rate has been a drain on the MMI Fund even though it is much smaller than the FHA’s forward loan portfolio. The recently revised HECM rules issued on Sept. 19 have “stopped the bleeding” in terms of new reverse mortgages, he added. However, separating the HECM portfolio from the FHA insurance fund and making it a stand-alone program is ...


October 13, 2017 - IMFnews

HUD Secretary Ben Carson Open to Excising HECMs from the MMIF

Rep. Heck said he will ask the GAO to study and recommend options for improving the reverse-mortgage program, including shifting HECMs out of the MMIF...


October 13, 2017 - IMFnews

A Modest Uptick in Home Lending for Wells Fargo in 3Q17; Meanwhile, a $1 Billion Legal Charge for Mortgage Investigations

Gain-on-sale profits came to 124 basis points, flat from the prior period, and the weakest reading of the past five quarters...


October 13, 2017 - IMFnews

A (Slight) Drop in Originations at BofA for 3Q17

Home equity lending fell even more at BofA: down 12.7 percent from the prior period...


October 12, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

Weekly mortgage rates and application survey data as well as indexes for ARMs.


October 12, 2017 - Inside Mortgage Finance

Widespread Defaults Predicted for Vintage HELOCs Didn’t Happen; Performance Helped by Price Gains

Federal regulators and industry analysts raised concerns that defaults would spike once pre-crisis home-equity lines of credit hit their amortization periods. Those fears didn’t come to pass as vintage HELOCs have performed well, thanks to home-price appreciation and low interest rates. Pre-crisis HELOCs typically had interest-only periods for the first 10 years then switch to fully amortizing or required a full payment as part of a balloon feature. According to a 2015 report by the Office of the Currency ...


October 12, 2017 - Inside Mortgage Finance

Political Storm May Be Brewing Over Trump Administration Bid to Cancel Some NFIP Debt

The Trump administration has proposed to cancel $16 billion of the National Flood Insurance Program’s existing debt in addition to other legislative proposals to boost the program’s ability to meet its obligations while remaining viable as a major provider of flood insurance to mortgagors. A political fight could erupt over the proposals, observers say. In a letter to Vice President Michael Pence, Office of Management and Budget Director Mick Mulvaney sought legislative reforms that would place the ...


Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

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