Mortgage Lending & Servicing

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

September 22, 2017 - Inside Mortgage Trends

Tech Helps Lenders Avoid Costly TCPA Lawsuits

Lawsuits arising from violations of the Telephone Consumer Protection Act have increased tremendously over the last couple of years and technology has been trying to stem the tide. By all accounts, TCPA litigation is out of control, wrote Charles Insler, an attorney in the St. Louis office of Hepler Broom, in an analysis of TCPA litigation trends earlier this year for the American Bar Association. Quoting from a 2016 opinion from the Seventh Circuit, Insler noted that TCPA litigation has ...


September 22, 2017 - IMFnews

ATTOM: Home ‘Flips’ Decline – Along with Profits

ATTOM’s Daren Blomquist: “In markets where distressed discounts have largely dried up, flippers are showing more willingness to leverage financing when acquiring properties…”


September 22, 2017 - IMFnews

Non-Agency MBS Issuance Constrained by a Lack of Supply

Matt Nichols, CEO of Deephaven Mortgage, a company that has issued nonprime MBS in recent years, said the main impediment to nonprime MBS is supply.


September 22, 2017 - IMFnews

MBS Market Plugging Along, Banks and Overseas Buyers Top Investors in 2Q17

Commercial banks were one of the most active buyers of residential MBS during the April-June cycle...


September 21, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


September 21, 2017 - Inside Mortgage Finance

Community Banking Trade Groups Seek Support for Regulatory Relief for Independent Mortgage Lenders

Trade groups representing smaller mortgage lenders are asking the Trump administration for targeted regulatory relief for smaller independent mortgage bankers. In a joint letter to Treasury Secretary Steven Mnuchin this week, the Community Home Lenders Association and the Community Mortgage Lenders of America urged the administration to back legislation that would exempt independent mortgage lenders from the Consumer Financial Protection Bureau’s supervision, enforcement and third-party vendor audits. Support is also being sought for CFPB administrative action to provide such targeted relief. In June, Treasury issued...


September 21, 2017 - Inside Mortgage Finance

Minding the Flood Insurance Policy Gap, GSEs Say They Monitor Servicers Annually for Compliance

Although flood insurance is required for Fannie Mae and Freddie Mac loans in designated flood areas, the recent hurricane activity in Houston and Florida has revealed that a number of borrowers didn’t have the coverage they were supposed to have. But getting to the root of the disconnect is complicated. Both government-sponsored enterprises said that it’s up to servicers to evaluate whether loans are in compliance with flood insurance requirements. But Fannie and Freddie said they also have their own systems in place to help ensure compliance. “Servicers are required...


September 21, 2017 - Inside Mortgage Finance

With GSE ‘Zero Capital Day’ About Three Months Away, Possible Credit Reserves Become a Factor

Unless the Federal Housing Finance Agency acts soon, Fannie Mae and Freddie Mac will see their capital buffers fall to zero on Jan. 1, 2018. Having zero capital may not be a big deal, initially – but a new complication has arrived in the form of hurricanes Harvey and Irma. According to Tim Rood, chairman of The Collingwood Group, the government-sponsored enterprises are not looking at losses “that will cost tens of billions of dollars – but they don’t need to be. The capital buffer is small as it is. And if a credit event happens, it could wipe out the thin layer of capital they have in a hurry.” If Rood – a former Fannie executive – is correct, the GSEs might have...


September 21, 2017 - Inside Mortgage Finance

CFPB Issues Proposed Policy Guidance on HMDA Data Collection, Looks Like New Requirements a Go

The Consumer Financial Protection Bureau has put out some proposed guidance on the controversial matter of how much of the expanded data collected under the Home Mortgage Disclosure Act will be made available to the public. The bureau did not announce any delay in the effective date of the revamped HMDA rule, slated to take effect Jan. 1, 2018. First, the agency wants to exclude several of the loan-level data points from public disclosure, including the universal loan identifier, the application date, the date the financial institution took action and the property address. Also, it would shield the borrower’s credit score, the mortgage loan originator ID number and any result generated by an automated underwriting system. Additionally, the CFPB is...


September 21, 2017 - Inside Mortgage Finance

CFPB Listening to Mortgage Rule Concerns, Data On Impact to Consumers Could Lead to Changes

Lenders and investors at the ABS East conference this week hit officials from the Consumer Financial Protection Bureau with a number of complaints about the agency’s mortgage rules. The bureau officials suggested that data will have more of an impact on policy changes than general complaints. Patrick Orr, a policy analyst at the CFPB, reiterated that the bureau is accepting feedback and considering changes or guidance for the TILA-RESPA Integrated Disclosure rule, special qualified-mortgage standards that apply to loans eligible for sale to the government-sponsored enterprises and aspects of the ability-to-repay rule, among other issues. A representative from one lender said...


September 21, 2017 - Inside Mortgage Finance

Why Should Mortgage Lenders Go Digital? That’s Where the Customers Are, Pros Say

Much of the historical discussion about the mortgage industry going fully digital and adopting e-mortgages has revolved around cost savings, greater efficiencies, validating compliance and other benefits. But at the end of the day, the biggest reason is that lenders’ customer base is increasingly focused on digital technology, and lenders need to go where the borrowers are. “That’s where the consumers are, right? Finally, everybody’s going online to shop for most of their products, and mortgages are starting to happen the same way,” said Tim Anderson, director of eServices for DocMagic, during a webinar last week sponsored by Inside Mortgage Finance. “They’re going out there looking for rates and pricing, they’re looking for real estate. If you want to capture that marketplace, you meet them out there in cyberspace.” Scott Stephen, president of the online division of Guaranteed Rate, noted...


September 21, 2017 - Inside Mortgage Finance

Subservicing Contracts Continued to Grow Slowly In a Crowded Field That Could Lead to a Shakeout

Subservicing contracts topped $1.97 trillion at June 30, a 4.3 percent gain from March and a 28.2 percent jump over the past year, according to an exclusive Inside Mortgage Finance survey. Overall, roughly 19.9 percent of all residential loans are now being processed by these “outsourcing” vendors, who do not own the underlying strip of receivables and instead receive a portion of the servicing fee for doing all the grunt work. The subservicing sector continues...[Includes one data table]


September 21, 2017 - Inside Mortgage Finance

Banks Continue Modest Gains in Mortgage-Production Market Share in Second Quarter, But Not the Giants

Depository institutions have been quietly regaining some market share from nonbanks over the past year, even though some of the largest banks continue to pull back, according to a new analysis and ranking by Inside Mortgage Finance. Banks, savings institutions and credit unions accounted for 51.3 percent of the $356.85 billion of first-lien mortgage originations by the top 100 lenders during the second quarter. The group boosted its production volume by 19.2 percent from the first three months of the year, while the top 100 overall posted a 17.3 percent gain in volume. It marked...[Includes two data tables]


September 21, 2017 - IMFnews

Short Takes: Waiting on a Wider Credit Box / A 30 Percent Jump for Nonconforming / 5,000 Active Loan Brokers for UWM / Don’t Count on Another Refi Boom Quite Yet / A New Hire for Altisource

Another refi spurt in the works? It may’ve looked that way a few weeks ago, but...


September 21, 2017 - IMFnews

Underwater Mortgages Steadily Drying Up

The average gain in equity clocked in at $12,987 for homeowners.


September 21, 2017 - IMFnews

Finance of America Enters the Correspondent Channel, Focusing on CUs and Community Banks

Finance of America’s backers include The Blackstone Group…


September 21, 2017 - IMFnews

Why Should Lenders Go ‘Digital’? Because That’s Where the Customers Are

“Everybody’s going online to shop for most of their products, and mortgages are starting to happen the same way,” said Tim Anderson, director of eServices for DocMagic, during an Inside Mortgage Finance webinar…


September 21, 2017 - IMFnews

CFPB Modifies ‘Equal Credit’ Regs, Giving Lenders Additional Flexibility

Originators will not have to maintain different practices based on their loan volume…


September 21, 2017 - IMFnews

Don’t Look Now but Depositories are Making Modest Gains in Lending Market Share

It marked the third straight quarter in which depositories raised their share among the top-100 mortgage originators.


September 20, 2017 - IMFnews

Houston Court Drives Final Nail into Allied’s Coffin, Imposes Total Damages of $293 Million

The case started back in 2011 as a “whistleblower” lawsuit filed in New York. Allied, a net branch operator, was based in Houston.


September 20, 2017 - IMFnews

United Wholesale Keeps Funding Startup Grants for Brokers, but Would Like Some Company

UWM CEO Mat Ishbia noted that his company does not have a say on which applicants ultimately get picked by NAMB, though the lender does have one representative on the review panel.


September 20, 2017 - IMFnews

Liquidity in the MBS and ABS Markets: As Strong as It’s Ever Been…

“Liquidity is strong across the spectrum and probably the best we’ve ever seen for structured products,” said Scott Levy, a senior managing director at Guggenheim Securities…


September 20, 2017 - IMFnews

Walter Gets $300 Million Increase in Financing from Barclays; Stock Spikes

News of the expanded repo line sent Walter's share price soaring...


September 20, 2017 - IMFnews

Depositories Continue to Place First Liens in Portfolio

Trends in portfolio management were somewhat mixed among the top 10 holders of first-lien mortgages…


September 19, 2017 - IMFnews

Federal Court Sanctions the CFPB for Deposition Conduct

When the depositions finally occurred, a CFPB witness used “memory aids” to deliver rote, sometimes unresponsive answers to questions.


September 19, 2017 - IMFnews

Caliber Ramps Up Non-QM Lending Big Time

Caliber plans to originate at least $1 billion of non-QM residential loans this year…


September 19, 2017 - IMFnews

Mortgage M&A Chatter Continues. Medium-Sized Shops Are Targets

Rick Roque, who runs Menlo, an M&A advisory firm, said he knows several owners who are contemplating a sale…


September 18, 2017 - IMFnews

Short Takes: MBA Wants a Change in HUD Reinspection Policies / Having an FHA Commissioner Might Help / Montgomery Resigns from Radian Board / DBRS Updates Due Diligence Criteria / A New Hire for Mortgage Network

The FHA nominee had been a Radian director since 2012…


September 18, 2017 - IMFnews

Nonbank Lenda Gets Backing of $5.25 Million

Lenda originally began as a refinance provider in 2013…


September 18, 2017 - IMFnews

Prestwick Selling $1.8 Billion Bulk Fannie/Ginnie MSR Portfolio

The Fannie balance of the pool accounts for $1.33 billion of the receivables.


September 18, 2017 - IMFnews

CFPB Official Tells ABS East Attendees: Show Us Data on How Consumers Have Been Harmed

“We want to know if there are impediments because of our rules,” said CFPB Policy Analyst Patrick Orr…


September 18, 2017 - IMFnews

A Growing Problem: VA ‘Rapid’ Refis

Acting Ginnie Mae President Michael Bright confirmed the resurgence of inappropriate streamline refinancing in securitization pools, promising a crackdown…


September 18, 2017 - IMFnews

HECM Production Up Almost 26 Percent in First Half of 2017

Despite increased originations, FHA data show HECM production, in general, has been on a gradual decline for several years…


September 15, 2017 - Inside FHA/VA Lending

Around the Industry

DOL’s Overtime Rule Dead – For Now. A federal district court in Texas recently struck down an Obama administration proposal that would have made millions of people eligible for overtime pay. Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas on Aug. 31 invalidated the DOL’s pending overtime regulations, which would have raised the salary threshold exemptions under the Fair Labor Standards Act. The Obama administration finalized the proposed regulations in May last year but was unable to implement them after Mazzant granted a request for injunction filed by the Plano Chamber of Commerce and 55 other business groups last November. The business entities opposed the proposed rule, which would have raised the minimum salary threshold necessary to qualify for the FLSA’s overtime exemption. The salary threshold would have increased from ...


September 15, 2017 - Inside FHA/VA Lending

FHA Announces Changes to HECM Counseling Certificates

The FHA will provide lenders that originate Home Equity Conversion Mortgage loans the option to view and print unsigned HECM counseling certificates in FHA Connection starting Sept. 18, 2017. While the lender may still take the initial loan application, the lender can only begin to process it once the counseling is complete, as evidenced by a completed HECM counseling certificate that contains signatures of both the counselor and borrower. Lenders that chose to use this option will be required to establish procedures to obtain and document authorization from the HECM borrower to access the counseling certificate in FHA Connection. In addition, lenders must certify that a borrower authorization to view the counseling certificate was obtained. Lenders must follow the guidance on processing HECM loans contained in the HUD Handbook, the FHA said. To access HECM counseling certificates, lenders will ...


September 15, 2017 - Inside FHA/VA Lending

Legal Experts Suggest Five ‘Fixes’ To Avoid Unfounded FCA Claims

Compliance attorneys are calling for legislative changes to prevent possible misuse of the False Claims Act that could result in settlements that could be financially devastating to mortgage lenders. Concerns about possible government misuse of FCA provisions are evident in the statutory qualifiers that are already embedded in the existing statute, according to a recent analysis by Krista Cooley and Laurence Platt, attorneys and partners in the Washington, DC, office of Mayer Brown. The qualifiers are in the main provision of the FCA that the Department of Justice has used against mortgage lenders and servicers, the attorneys said. The provision imposes liability on any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or ...


September 15, 2017 - Inside FHA/VA Lending

USDA Securitization Up in 2Q17, Chase Regains Previous Ranking

Ginnie Mae securitization of single-family mortgages backed by rural housing loans with the U.S. Department of Agriculture guarantee rose in the second quarter of 2017 and on a year-over-year basis. Issuance of securitized USDA loans increased 9.0 percent from the previous quarter and was up 17.1 percent halfway through 2017 compared to first six months last year. Securitized rural housing loans accounted for $5.0 billion of total Ginnie MBS issuance in the second quarter and $9.5 billion of Ginnie MBS issued during the first six months of 2017. Freedom Mortgage led the market with $1.8 billion. Although down 1.4 percent from the first quarter, Freedom reported a whopping tenfold increase for the first six months from the same period last year. PennyMac maintained its second-place ranking with $1.4 billion, up significantly on a quarterly and year-over-year basis, while Wells Fargo, in third place, closed out the first half with $673.8 million in USDA-backed MBS. Chase Home Finance climbed ... [Chart]


September 15, 2017 - Inside FHA/VA Lending

VA Finalizes Rule for Establishing Fees, Charges for Vendee Financing

The Department of Veterans Affairs has announced a final rule that will allow it to establish reasonable fees to cover the costs of originating and servicing a VA-backed vendee loan. A vendee loan enables a borrower to purchase a VA real estate-owned property. Vendee financing is not a veteran benefit but is available to any purchaser, including veterans and servicemembers. In addition, vendee financing is available for non-owner and owner-occupied residential properties. An owner-occupied purchase can be financed with as little as zero percent downpayment while a non-owner-occupied purchase requires a minimum 5 percent downpayment. In addition, for non-owner-occupied purchases, investors may use 75 percent of anticipated rent, based on an appraiser’s estimate, to offset the subject property monthly payment. Furthermore, investors must have experience in ...


September 15, 2017 - Inside FHA/VA Lending

Lenders Seeking to Maintain Profit Margins Boost HECM Production

Reverse mortgage originations with FHA insurance increased both on quarterly and year-over-year bases as lenders, led by nonbanks, moved into the Home Equity Conversion Mortgage market to boost their bottom lines. HECM originations were up 5.5 percent from the first to the second quarter, closing out the first six months with $9.3 billion in total originations. Production was up 25.8 percent at the halfway mark compared to last year. Purchase loans comprised approximately 82.9 percent of HECM volume during the first half of the year. Adjustable-rate HECMs remained the preferred reverse-mortgage product for the majority of borrowers. Despite increased originations, FHA data show HECM production in gradual decline since endorsements peaked at $114.7 billion in FY 2009. The top five HECM producers in the first quarter continued to hold on to their spots. American Advisors Group maintained its rank as ... [Charts]


September 15, 2017 - Inside FHA/VA Lending

MBA Offers Measures to Deal With VA Appraisal Issues, Delays

The Mortgage Bankers Association has recommended steps to address the VA appraiser shortage and increased appraisal turn times. The industry group made its recommendations in a recent letter to Jeffrey London, executive director of the Department of Veterans Affairs’ Loan Guaranty Service, based on a roundtable discussion between MBA and other industry stakeholders in March. Stakeholders expressed their concern for the lack of VA appraisers and longer waiting periods for appraisal reports. Appraiser shortage is an ongoing problem for the VA, and has resulted in delayed loan closings, particularly in highly rural areas. Some states, like Oregon, have very few appraisers, the MBA pointed out. “This delay may force veterans to choose other loan programs to meet certain deadlines or face other adverse outcomes,” the MBA letter warned. On the other hand, the ...


September 15, 2017 - Inside FHA/VA Lending

Ginnie Mae to Take Action Against Illicit Refinancing of VA Mortgages

Rapid, aggressive refinancing of VA loans has made a comeback with some issuers using strategies to mask the practice and avoid possible penalties, including expulsion from the Ginnie Mae program, according to a top agency official. Responding to concerns raised by Sen. Elizabeth Warren, D-MA, Michael Bright, acting Ginnie Mae president and chief operations officer, said a joint Ginnie Mae/VA lender-abuse task force is analyzing monthly data and developing additional policy measures to deal with the problem. Bright confirmed the resurgence of inappropriate streamline refinancing in Ginnie securitization pools in recent weeks and has promised to crack down on the questionable practice. The problem surfaced last year when Ginnie Mae noticed unusually fast prepayment speeds in its mortgage-backed securities, particularly MBS backed by VA loans. Ginnie found that certain lenders and ...


September 15, 2017 - IMFnews

CHLA Underscores Importance of Nonbanks

Nonbank lenders rely on their own capital and on warehouse loans to fund loans, rather than federally insured deposits...


September 15, 2017 - IMFnews

Short Takes: Patenaude Finally Gets Senate Approval to be the #2 at HUD / Acting Ginnie Chief Vows Progress on VA Refi Abuses / Radian Readies Huge Note Sale / A New Hire for eOriginal

Radian inked a deal with Wall Street underwriters this week to sell $450 million of senior notes due in 2024...


September 15, 2017 - IMFnews

Interest in Mortgage Tech Heats Up

Blend announced a stunner – it had raised $100 million in “Series D” funding…


September 14, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


September 14, 2017 - Inside Mortgage Finance

Nonbanks Continue Market Takeover in 2017, Could Pose Risk to GSEs, FHA and Ginnie

The growing reliance on nonbanks could pose a risk to the government housing agencies, according to a recent study by the Urban Institute’s Housing Policy Center. Just four years ago, banks originated 70 percent of new mortgages, the researchers noted. But in 2017 nonbanks are originating 60 percent of all new mortgages and 76 percent of loans destined to be securitized by Ginnie Mae. UI called...


September 14, 2017 - Inside Mortgage Finance

Texas District Court Invalidates Obama-Era Overtime Rule, Attention Turns to Fifth Circuit as it Reviews Injunction Order

It’s back to square one for the Department of Labor after a federal court in Texas struck down an Obama administration proposal that would have made millions of people eligible for overtime pay, including some mortgage workers. Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas on Aug. 31 invalidated the DOL’s pending overtime regulations, which would have raised the salary threshold exemptions under the Fair Labor Standards Act. The Obama administration finalized the proposed regulation in May last year but was unable to implement it after Mazzant granted a request for injunction filed by the Plano Chamber of Commerce and 55 other business groups last November. The business entities opposed...


September 14, 2017 - Inside Mortgage Finance

Input on Proposed GSE Housing Goals Mixed, Housing Groups Want to See More Impact

The Mortgage Bankers Association, along with other housing trade groups, wants to make sure that Fannie Mae and Freddie Mac housing goals work in tandem with pending duty-to-serve requirements and multifamily volume caps to promote affordable housing. The MBA was one of about 10 groups that offered commentary on the proposed new housing goals for the government-sponsored enterprises for 2018 through 2020. The current goals expire at the end of the year. The Federal Housing Finance Agency released the proposed goals in June. The MBA said...


September 14, 2017 - Inside Mortgage Finance

United Wholesale Keeps Funding Startup Grants For Brokers, but Doesn’t Have Much Company

At least 40 new loan brokerage firms have been created this year thanks to $500,000 in grant money donated last fall by United Wholesale Mortgage, Troy, MI. In fact, the effort has been so successful that, UWM – which is the largest table-funder of brokers – recently kicked in another $100,000. As for future growth in the initiative, that’s hard to say. UWM, so far, has been...


September 14, 2017 - Inside Mortgage Finance

House GOP Begins Second Prong in Approach To Reg Relief, Considers TRID Improvement Act

When House Financial Services Committee Chairman Jeb Hensarling, R-TX, first introduced the second version of his Financial CHOICE Act, he acknowledged the comprehensive regulatory relief package might not make it through the Senate in one piece. He said he had a “short game” and a “long game,” suggesting he was open to small, incremental change while still pushing forward with more comprehensive change over the long haul. Last week, the Financial Institutions and Consumer Credit Subcommittee executed a little of that “short game” strategy, holding a hearing to consider a handful of legislative proposals to foster a more efficient federal financial regulatory regime, including two mortgage-related bills. The potentially more significant bill is...


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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