Mortgage Lending & Servicing

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

August 18, 2017 - Inside FHA/VA Lending

WIMC Rethinks Reverse Mortgage Strategy, Mulling Sale of Assets

Walter Investment Management Corp. is evaluating options for its reverse mortgage business, including the possibility of selling some or all of its assets or collaborating with third parties. WIMC’s reverse-mortgage segment has been adversely affected by the Department of Housing and Urban Developments new requirements, raising the need for additional working capital to finance Ginnie Mae buyouts, according to the company’s 10-Q disclosures. The company reported pre-tax losses of $93 million in the second quarter of 2017. The reverse-mortgage segment reported $16.5 million of pre-tax loss for the same period, following a pre-tax loss of $26.9 million in the prior year quarter. During the second quarter, WIMC’s reverse-mortgage business generated $15.4 million in revenue, down $0.7 million year-over-year. Cash generated by the origination, purchase and securitization of Home ...


August 18, 2017 - Inside FHA/VA Lending

No Ginnie Mae Summit in 2017, Event Moved to January 2018

Ginnie Mae will not have an annual summit this year but has rescheduled it for January 2018, according to Ginnie Mae’s new spokesperson. Michael Huff, senior advisor, congressional and stakeholder relations, said a new administration and staff departures have caused organizers to reconsider having the annual Ginnie Mae Summit this year, usually held in October. The Trump administration has yet to announce a nominee for the top job at Ginnie Mae since former president Ted Tozer left in January. David Kittle is reportedly a leading contender, but there has been no official announcement or confirmation. So far, Kittle has declined to comment. Kittle is a mortgage industry veteran who began as a loan officer and now heads his own company. He also was a top executive with the Mortgage Bankers Association and managed, among other things, the group’s political action committee. In addition, Kittle co-founded the ...


August 18, 2017 - Inside FHA/VA Lending

Private MI Trade Group Urges CFPB To Establish Single QM Rule for All

The private mortgage insurance industry has called for harmonized qualified-mortgage standards to discourage potential arbitrage that might adversely affect consumers. In a comment letter, the U.S. Mortgage Insurers urged the Consumer Financial Protection Bureau to assess whether the various QM standards established under the Dodd-Frank Act have created arbitrage opportunities to the detriment of consumers. The CFPB is about to begin a reevaluation of its ability-to-repay rule/QM rule. QM standards are different for Fannie Mae, Freddie Mac and the Federal Home Loan Banks than for FHA, VA and the U.S. Department of Agriculture. The USMI said analysis should focus on the different treatment of points and fees and maximum borrower debt-to-income ratio among the various QM standards. The CFPB can address the calculation of points and fees under its ATR/QM rule by ...


August 18, 2017 - Inside FHA/VA Lending

NYDFS Accuses Veterans United of Overcharging Vets on VA Loans

The Mortgage Research Center, which does business as Veterans United Home Loans and/or VA Mortgage Center, has agreed to pay $1.1 million to New York regulators to resolve allegations of overcharging veterans on loans guaranteed by the Department of Veterans Affairs. Veterans United was the second largest VA lender in the country in the second quarter, with a 5.4 percent share of the VA market, according to the Inside FHA/VA Lending database. The settlement agreement is part of a consent order entered into recently by Veterans United with the New York Department of Financial Services (NYDFS). The settlement stemmed from an investigation which found that the Columbia, MO-based company did not refund “surplus lender credits” on 322 VA loans originated from Jan. 1, 2011, to June 30, 2014. According to the consent order, borrowers obtained a credit from ...


August 18, 2017 - Inside FHA/VA Lending

Wells Fargo, PHH Reach Separate Settlements to Resolve FCA Suits

Wells Fargo and PHH Mortgage have reached separate settlements with the Department of Justice and three other federal agencies to resolve alleged violations of the False Claims Act. The DOJ, Department of Housing and Urban Development, Department of Veterans Affairs and the Federal Housing Finance Agency will rake in $182 million from the settlement of lawsuits involving FHA and VA loans, as well as loans sold to Fannie Mae and Freddie Mac. Wells Fargo denied the allegations in the whistleblower lawsuit but agreed to pay $108 million to resolve the claims. It admitted to no fault or liability. Filed in 2006 and unsealed in 2011, the lawsuit alleged that the bank overcharged veteran borrowers by masking ineligible fees in order to obtain VA guarantees on certain Interest Rate Reduction Refinancing Loans, or streamlined refi mortgages. At the same time, Wells allegedly falsely certified to the VA that it ...


August 18, 2017 - Inside FHA/VA Lending

Clarity Sought on HUD Preemption Of State Statutes of Limitation

Reverse mortgage lenders are asking FHA to clarify the applicability of state statutes of limitations on collections and foreclosures involving Home Equity Conversion Mortgage loans. In a comment letter to the Department of Housing and Urban Development, the National Reverse Mortgage Lenders Association sought clarification to avoid any potential risk to the department and reverse mortgage lenders. Since federal agencies are not subject to state statutes of limitations, the NRMLA asked the FHA to confirm that HECM loans assigned to HUD are not covered by state statutes of limitations on collections and foreclosure. The trade group also requested FHA to clarify whether HECM regulations and program guidelines preempt any such state law. “Requiring mortgagees to assign loans to HUD and make certifications that such loans are and will be ...


August 18, 2017 - Inside FHA/VA Lending

FHA Originations Up, VA Down, Quicken, USAA Lead Production

FHA production increased slightly even as VA originations fell by a larger percentage in the second quarter of 2017, an analysis of the agencies’ lending activities found. FHA ended the quarter with $60.8 billion in forward mortgage endorsements, up 1.8 percent from the previous quarter. In contrast, VA originations declined by 4.9 percent over the same period, closing the second quarter with $40.8 billion. FHA and VA production typically gain share when the purchase-mortgage lending increases. For example, Inside Mortgage Finance reported that purchase mortgages comprised 71.3 percent of loans securitized in Ginnie Mae mortgage-backed securities in 2Q17, compared to 59.9 percent in Fannie Mae and Freddie Mac MBS. FHA endorsements over the first half of 2017 totaled $120.6 billion, of which $86.0 billion were purchase loans. This was up 4.8 percent from the same six-month period ... [Charts]


August 18, 2017 - Inside FHA/VA Lending

Industry Experts Favor Unified GSE, FHA/VA Servicing Policies

Simplifying and aligning the default servicing policies of the conventional conforming and the government-backed mortgage markets would better serve the mortgage industry and homeowners, according to industry experts. In a recent discussion on how regulatory burden and high servicing costs might impede lending, members of the Mortgage Servicing Collaborative agreed on the need for streamlined and harmonized federal, state and agency policies and rules on servicing. Increased regulatory requirements have caused mortgage-servicing costs to skyrocket in recent years, experts said. Even though the quality of servicing has improved, the new regulations are complex and costly, they noted. Multiple pressures placed upon servicers have suppressed mortgage lending, making it harder for borrowers with tainted credit to obtain a mortgage, according to the ...


August 18, 2017 - IMFnews

Phoenix Capital Busy with MSR Auctions

The average loan balance on the $779 million MSR package is $241,000…


August 18, 2017 - IMFnews

With No Ginnie Mae President on Board, Annual Summit Moved to January 2018

The Trump administration has yet to announce a nominee for the top job at Ginnie Mae...


August 18, 2017 - IMFnews

Industry Reps Use Congressional Recess to Gear Up for Fall Legislative Push

Meanwhile, the leaders of the Senate Banking, Housing and Urban Affairs Committee have introduced S. 1751, a six-year extension bill with relatively minor reforms, as far as the Realtors are concerned.


August 17, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


August 17, 2017 - Inside Mortgage Finance

Editorial Note

Inside Mortgage Finance received revised data from a private mortgage insurance company after the August 11 issue was published


August 17, 2017 - Inside Mortgage Finance

Mortgage Servicers May Be on the Cusp of a New Era But Borrower Satisfaction Suddenly Takes a Hit

With the troubles from the financial crisis fading in the rear-view mirror, the residential mortgage servicing industry could be on “the edge of glory,” if companies can elevate their game and keep it at a high level, according to analysts with S&P Global Ratings. “The financial crisis left mortgage servicing hanging on a moment of truth,” they said in a new report. “This led to substantial changes in the industry in the past 10 years, the effects of which are still being felt today.” The changes included...


August 17, 2017 - Inside Mortgage Finance

Demographic Twists: Millennials Turning Away From FHA; Gen X Borrowers Like Working With Brokers

A new report found that fewer millennials have taken out FHA loans in the past couple of months and more choosing conventional loans. Separately, mortgage brokers are getting most of their business from Generation X. According to June data from the Ellie Mae Millennial Tracker, approximately 63 percent of all closed loans made to millennial borrowers were conventional mortgage loans with an average amount of $205,066, while 36 percent were FHA loans with an average amount of $173,381. Conventional and FHA loans, which tend to track in cycles, make up...


August 17, 2017 - Inside Mortgage Finance

MBA Says Ending the Fannie, Freddie Duopoly Beneficial For All, Including Small Lenders

Mortgage industry groups cannot seem to agree on whether there should be more than two guarantors of conventional mortgage-backed securities once Congress and the White House figure out what to do with Fannie Mae and Freddie Mac. The Mortgage Bankers Association firmly supports multiple guarantors, arguing that more competition is better. But groups representing smaller lenders worry about the burden of maintaining relationships with many secondary-market outlets and the potential for an uneven playing field. David Stevens, president and CEO of the MBA, said...


August 17, 2017 - Inside Mortgage Finance

Mortgage Lenders Starting to Use Webcams to Close Loans, Providing Borrowers More Flexibility

Mortgage closings moved out of the office years ago to places more convenient for borrowers. Now, technology allows closing to occur without all the parties being present in the same place. United Wholesale Mortgage claims to be the first lender to have completed a “virtual e-closing” with a refinance that closed at the end of July. The lender allowed the borrowers and notary to use webcam technology and electronically sign all of the closing documents. Previously, lenders offering e-closings have required some in-person contact with a notary to e-sign closing documents. “This ultimately eliminates...


August 17, 2017 - Inside Mortgage Finance

Industry Reps Use Congressional Recess to Gear Up For Second-Half Push of Mortgage Legislation

Members of Congress have left Washington, DC, for their summer recess, and mortgage industry representatives are using the time to plan strategy and educate lawmakers on key issues to help propel a number of measures across the finish line before the year ends. The most time-sensitive issues are reauthorizing the national flood insurance program and setting budgets for FHA and Ginnie Mae activity in fiscal 2018, which begins Oct. 1, 2017. Lawmakers will be looking to deal with these in September. Authority for the National Flood Insurance Program expires...


August 17, 2017 - Inside Mortgage Finance

Watt Hints That He May Not Alter the Dividend Payment. A Complication: the GSE Lawsuits?

The issue of whether the Federal Housing Finance Agency will alter the dividend payments Fannie Mae and Freddie Mac pay the Treasury Department became a bit more complicated this month when agency Director Mel Watt hinted in correspondence he’s unlikely to make a change. But despite such a sentiment being expressed in a letter to the National Association of Realtors, there continues to be a school of thought among certain lobbyists and trade group officials that a change is coming. “I still think...


August 17, 2017 - Inside Mortgage Finance

‘Excess’ Servicing Up for Grabs on $11 Billion Ginnie Portfolio; Other Deals Percolating as Rates Stay Low

A California nonbank is in the market with an excess servicing deal tied to an $11 billion Ginnie Mae portfolio, according to investment bankers familiar with the auction process. Sources contend the sale is being managed in part by Andrew Platt, a former managing director at MountainView Capital Group, Denver, a firm that’s an active broker of servicing rights. Platt now serves as vice chairman of Sprout Mortgage, a nonprime lender based in Henderson, NV. The deal is...


August 17, 2017 - Inside Mortgage Finance

Government-Insured Sector Regains Market Share In 2Q17 as Purchase-Mortgage Lending Lifts Off

Mortgage origination volume was up substantially in all product categories during the second quarter, but the government-insured market posted the biggest gain, according to a new ranking and analysis by Inside Mortgage Finance. Mortgage lenders produced an estimated $125.0 billion of government-insured home loans during the second quarter, up 19.0 percent from the first three months of the year. That nudged the government-insured share of the market up to 27.5 percent, the highest it’s been since early 2010. In the immediate aftermath of the housing-market meltdown, jumbo and nonprime production was depressed significantly, boosting the shares of government and conventional-conforming production. FHA and VA production typically gains...[Includes two data tables]


August 17, 2017 - IMFnews

Lenders Starting to Use Webcams to Close Loans

The company is also working with Stewart Title...


August 17, 2017 - IMFnews

Short Takes: Changes for the HARP Program / Still Eligible: 143,000 / But Shrinking / Citadel Servicing Crosses $1B Mark / A New CIO for Freddie Mac

The FHFA estimates that roughly 143,000 GSE borrowers are still eligible to use the HARP program.


August 17, 2017 - IMFnews

Walter’s Stock Crushed Yet Again on New Disclosure; Nonbank Plans to Remedy NYSE Delisting

Walter has a market capitalization (stock price multiplied by number of shares) of just $11.8 million…


August 17, 2017 - IMFnews

Citadel Offering One-Month Bank Statement Program with Minimum Credit Score of 700

In its new bank-statement program, Citadel will make mortgages of up to $3 million…


August 17, 2017 - IMFnews

Government-Insured Mortgages the Biggest Gainer in 2Q17

Roughly 71.0 percent of second-quarter primary-market originations of first-lien mortgages were purchase loans, the highest reading in years…


August 16, 2017 - IMFnews

Short Takes: HUD Deputy Nominee Waits on the Senate, Still / Refis Rising? / A Private Placement for Ellington / Ellie Goes After the Big Boys / A Share Price Estimate of Zero

Mortgage software provider Ellie Mae said in a recent SEC filing that “part” of its business strategy is to target larger mortgage lenders...


August 16, 2017 - IMFnews

For Sale by MountainView: $94 Million of NPLs/RPLs and More

Over the past three years MountainView has sold $3.8 billion of whole loans as measured by unpaid principal balance…


August 16, 2017 - IMFnews

Mortgage Hiring Spree Tapering Off?

Another digital lender that’s hiring is NewFi Lending of Emeryville, CA…


August 16, 2017 - IMFnews

Federal Appeals Court Rules Mortgage Underwriters are Entitled to OT Pay

Under this test, an employer must show that the employee is paid at least $455 per week…


August 15, 2017 - IMFnews

Short Takes: What REITs and Fannie & Freddie Have in Common / Replacing One Burden with Another / Who is Western Bancorp? / PHH’s Warehouse Providers / A New Hire for LenderLive

A higher dividend than what Fannie and Freddie pay?


August 15, 2017 - IMFnews

Guild Mortgage Hires PHH’s CIO Gabe Minton

At PHH, from 2014 to 2017, Minton held the title of senior vice president and chief information officer.


August 15, 2017 - IMFnews

As Financial Crisis Fades, are Mortgage Servicers Poised for a New Era?

Servicing costs have risen dramatically this decade, but maybe there’s light at the end of the tunnel…


August 15, 2017 - IMFnews

Firm Whose Affiliate Sued FMC Becomes ‘Capital Partner’ to Silicon Valley Lender

Little is known about Eli Global, which bills itself as a “privately held investment firm” with 5,500 locations in 20 locations globally…


August 15, 2017 - IMFnews

2Q17 a Rocky Road for (Certain) Publicly Traded Nonbanks

Most of the companies are in decent shape, but the group is weighed down by two big albatrosses – Ocwen Financial and Walter Investment…


August 15, 2017 - IMFnews

RE Crisis Post-Mortem: Home-Price Depreciation a Bigger Driver of Defaults than Unemployment

S&P focused on mortgages originated between the second half of 2005 and the first half of 2008.


August 14, 2017 - IMFnews

Short Takes: More Disclosures from Walter / KBW on Ocwen / You Need a Budget, Now / Supreme Wants to Hire 100 LOs / New Hires for Greystone

Industry consultant Joe Garrett, in a new company newsletter, says he’s still bothered that “so few mortgage companies” don’t have budgets.


August 14, 2017 - IMFnews

Freddie Mac Picks up the Pace in CRTs During 2Q17

Freddie Mac issued $2.11 billion of new Structured Agency Credit Risk notes, an impressive increase of 35.6 percent…


August 14, 2017 - IMFnews

California Bank Cuts Mortgage Staff as Refis Decline

Provident noted that overcapacity is putting pressure on origination margins…


August 14, 2017 - IMFnews

TRID Related Deadlines for Amendments, Comments Now Set

The TRID amendments, which were finalized in July, codify the CFPB’s informal guidance on various issues and makes additional clarifications and technical amendments.


August 11, 2017 - Inside The GSEs

Watt Cites Minority-Specific Homeownership Challenges

Federal Housing Finance Agency Director Mel Watt said both old and new obstacles have negatively affected African-American homeownership, which has steadily retrogressed. Before the housing crisis, the homeownership rate for African-Americans was close to 50 percent in 2004. However, by 2017 it declined closer to levels last seen in 1994. “We are worse off today than we were 20 years ago,” said Watt, while speaking at the National Association of Real Estate Brokers’ annual convention in New Orleans last week. He pointed out that because home equity has played a major role in African-American assets, the impact of the economic downturn and foreclosure crisis on wealth in


August 11, 2017 - Inside Mortgage Trends

2Q17 a Rocky Road for Publicly Traded Nonbanks; Several Firms on the Ropes

The second quarter of 2017 was not easy for publicly held nonbank mortgage lenders and servicers, but the beleaguered sector fared better than it did a year ago. A new Inside Mortgage Trends analysis of second-quarter earnings reports found the eight companies in the roundup managed to generate just $24.37 million in mortgage-banking income. That was down 80.1 percent from the group’s first-quarter earnings. One public nonbank, Stonegate Mortgage ... [Includes one data chart]


August 11, 2017 - IMFnews

Forget the Millennials. Gen Xers Still Make Up Bulk of Borrowers, Says New Report

Gen Xers on average favor making down payments of 20 percent, while Millennials tend to make down payments of 3 percent or less...


August 11, 2017 - IMFnews

Low Downpayment Lending is Expanding, Says BKFS

Over the past 12 months, 1.5 million borrowers have purchased a home using down payments below 10 percent…


August 11, 2017 - IMFnews

Large Servicing Sales Skew Toward Privately Negotiated Transactions

As the weekend approached it was unclear which suitor won the Seneca MSR portfolio…


August 10, 2017 - IMFnews

Short Takes: Walter Exits Reverse Lending, May Sell the Business / Redwood Queues Up Another Jumbo Deal / Dark Money in Cordray Effort? / A Small Gain for Applications / New Hires for Churchill

It’s safe to say that CFPB Director Richard Cordray has been one of the most controversial financial regulators to work in Washington, D.C. for quite some time...


August 10, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


August 10, 2017 - Inside Mortgage Finance

Federal Appeals Court Rules Mortgage Underwriters Are Entitled to OT Pay; Time for SCOTUS or DOL to Intervene?

The U.S. Court of Appeals for the Ninth Circuit recently held that mortgage underwriters are not “administrative employees” and, therefore, not exempt from the overtime protections of the Fair Labor Standards Act. The court’s ruling in McKeen-Chaplin v. Provident Savings Bank overturned a lower court decision and deepened a split among the circuit courts on whether certain employees of mortgage companies qualify for overtime pay. Given the conflicting circuit court opinions, attorneys are...


August 10, 2017 - Inside Mortgage Finance

Rising Home Prices Are Beginning to Dampen Homebuyer Demand, Fannie Survey Finds

Purchase mortgages are getting to be a tougher sell as many potential homebuyers say high prices make it a lousy time to buy a house, and sellers are getting less enthusiastic as well. A Fannie Mae survey found that the share of people surveyed who said it was a bad time to buy reached a high of 57 percent in July, while the share who said it was a good time to buy hit a low, 34 percent. The government-sponsored enterprise has been conducting the survey since 2011. “It’s...


August 10, 2017 - Inside Mortgage Finance

MBA Estimates Slight Impact of Housing- Finance Reform on Consumer Costs

The Mortgage Bankers Association said its housing-finance reform proposal would likely have little impact on consumer mortgage costs. Whether costs to consumers are modestly higher or lower will depend on how the different components suggested for reform are determined through the political process, according to the MBA. “While the precise impact on consumer costs from true housing-finance reform may be difficult to gauge, we know...


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