Mortgage Lending & Servicing

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

January 23, 2018 - IMFnews

CFPB Chief Mulvaney Hangs Tough in Nationwide Biweekly Case

However, the bureau eventually pressed ahead, arguing to uphold the judgment against the biweekly lender…


January 23, 2018 - IMFnews

HomeStreet’s Originations Declined in 4Q, but Mortgage Net Income Boosted by Tax Changes

HomeStreet ranks 41st among all residential lenders, according to Inside Mortgage Finance…


January 23, 2018 - IMFnews

An Origination Gain for Flagstar Bancorp, but Company Posts Loss Because of Tax Bill

Flagstar's serviced-for-others portfolio increased to 442,000 loans from 415,000 in 3Q17, but a large chunk of that represents subservicing arrangements.


January 23, 2018 - IMFnews

Guild Agrees to Buy Cornerstone in What Could be a Busy Year for M&A

“Both sides have gotten to know each other very well, so the intangibles and cultural fit are expected to be very strong,” said investment banker Mark Stafford of MS Capital Advisors.


January 22, 2018 - IMFnews

Short Takes: Fannie, Freddie and the Government Shutdown / Ginnie Mae Down to a Skeleton Crew? / Sorry, Call Later When We’re Open / But the CFPB is Open for Business / New LOs for Mortgage Network

HUD tells the mortgage industry: “Due to the federal government shutdown, the information on this website may not be up to date…”


January 22, 2018 - IMFnews

Phoenix Capital, Prestwick Out with New MSR Deals

Several other MSR packages are expected to hit the market in the coming weeks…


January 22, 2018 - IMFnews

Redwood’s Net Income Increased as the REIT Boosted ‘Expanded-Credit’ Activity

Redwood said profit margins exceeded its "long-term expectations" of 75 to 100 basis points...


January 22, 2018 - IMFnews

The Money Source Poised for a Production Boom, Wants to Hire 134 LOs

The Money Source wants to hire 134 retail loan officers this year and 60 account executives…


January 22, 2018 - IMFnews

Under Mulvaney, the CFPB May Go Easy on Lenders – but the States Certainly Won’t

Compliance attorneys strongly suggested now is not the time for mortgage companies to let their guard down.


January 22, 2018 - IMFnews

A Boom Year for Mortgage Servicing Transfers, Though 4Q Cooled Somewhat

The bulk market was dominated by New Residential Mortgage…


January 19, 2018 - Inside The GSEs

Housing-Finance Reform Should Address Servicing Issues

Issues related to mortgage servicing, including the rising costs to service mortgages today, should be included in talk of housing-finance reform, according to a new paper by the Urban Institute. Since the housing downturn, mortgage servicing costs have risen dramatically, which has reduced access to credit and forced some depository institutions to leave the market. The UI said that the foreclosure crisis in 2007 upended the pre-crisis servicing model. And despite its importance, the report said, mortgage servicing is frequently overlooked in major policy conversations. “That is a mistake. The servicing industry has changed dramatically since the 2008 mortgage default and foreclosure crisis and subsequent Great Recession,” said the paper.


January 19, 2018 - Inside The GSEs

GSE Servicing Market Became More Top-Heavy in 4Q17

The ongoing growth of New Residential Mortgage resulted in an increase in concentration among the top servicers of single-family Fannie Mae and Freddie Mac loans in the fourth quarter. New Residential, a real estate investment trust that invests in mortgage servicing rights and related assets, has rocketed up the ranks of GSE servicers. After picking up its seller-servicer approvals in the third quarter of 2016, the company had amassed a $229.57 billion MSR portfolio by the end of last year. The REIT so far hasn’t invested in Ginnie Mae servicing. Its Fannie/Freddie holdings grew by 13.5 percent during the fourth quarter, enough to vault over Bank of America to become the third-largest investor in GSE MSR. New Residential pays subservicers to handle loan administration duties.


January 19, 2018 - Inside Mortgage Trends

Mortgage Industry Sees Promise in Blockchain

Distributed ledger technology known as blockchain has the potential to transform back-end functions in mortgage origination, servicing and secondary marketing, according to industry participants. Blockchain has gained some prominence as virtual currencies such as bitcoin are reliant on the technology. Tim Willis, head of the governance and controls practice at RiskSpan, an analytics firm, said reporting of servicing data to investors hasn’t changed much in the past two decades ...


January 19, 2018 - Inside Mortgage Trends

Look to States to Counter Less Aggressive CFPB

Top compliance attorneys warn that multiple state attorneys general will follow through on their vow to step up more aggressively to counteract any lessening of enforcement zeal at the Consumer Financial Protection Bureau under the new command of Acting Director Mark Mulvaney. During a webinar this week sponsored by Inside Mortgage Finance, Melanie Brody, a partner with the Mayer Brown law firm in Washington, DC, elaborated on that view. “I think it’s really important for ...


January 19, 2018 - IMFnews

Behind the Trump Tax Changes: Revised Treatment of Rate-Lock Commitments and Hedges

IRLCs generally last 30 to 60 days, with lenders agreeing to make a mortgage at a particular interest rate prior to funding the loan.


January 19, 2018 - IMFnews

Most Large Banks Report a Production Decline for 4Q17

The lone bank bucking the trend was U.S. Bank, Minneapolis, which funded $12.5 billion, a 3.3 percent improvement from the prior period.


January 18, 2018 - Inside Mortgage Finance

Fed Ends Servicing-Related Enforcement Actions Against 10 Banks, Levies $35.1 Million in Fines Against Five Servicers

The Federal Reserve Board last week wrapped up enforcement actions against 10 banks and im-posed fines against five of them after “sustainable improvements” in their servicing operations.


January 18, 2018 - Inside Mortgage Finance

Congress Considers Veteran Protections Against Predatory Refinancing Schemes, Establishes Net Tangible Benefit Test

Bipartisan legislation was introduced last week in the U.S. Senate to protect veterans and service members from predatory serial refinancing by requiring lenders to show the transaction actually bene-fits the borrower.


January 18, 2018 - Inside Mortgage Finance

Four Years into CFPB’s Ability-to-Repay Rule, Optimists Hope Non-QM Becomes More Than Niche

The game-changing ability-to-repay mortgage lending rule from the Consumer Financial Protec-tion Bureau took effect four years ago this month. At that time, regulators said there would be plenty of mortgage lending outside the parameters of the qualified-mortgage box. So far, however, that ex-pectation has yet to be realized.


January 18, 2018 - Inside Mortgage Finance

Credit Score War Brewing as FHFA, GSEs Explore Alternative Scoring Systems

Fannie Mae and Freddie Mac have been charged with exploring options to update their current FICO credit scoring model and make a decision this year as to whether to make the switch in 2019.


January 18, 2018 - Inside Mortgage Finance

Hensarling’s Panel Advancing More Housing Finance, Regulatory Relief Legislation This Week

The House Financial Services Committee this week was advancing more than a dozen and a half regulatory relief measures as Inside Mortgage Finance was going to press, including some mortgage-related legislation that would expand the qualified-mortgage box for smaller entities and exempt many institutions from the rules and regulations issued by the Consumer Financial Protection Bureau.


January 18, 2018 - Inside Mortgage Finance

Lenders Face a Plethora of Changes in Tax Law, Including Revised Treatment of Rate-Lock Commitments and Hedges

The recently enacted Tax Cuts and Jobs Act was pitched as a simplification of the tax code. And while the bill could ultimately reduce some tax-related complexities, lenders are facing sweeping changes this year.


January 18, 2018 - Inside Mortgage Finance

Most Large Banks Report Production Decline In Fourth Quarter, Except for U.S. Bank

As a group, the largest bank mortgage lenders began reporting sagging mortgage originations in the fourth quarter, though the drop was hardly a disaster.


January 18, 2018 - Inside Mortgage Finance

Guild Mortgage Strikes First in What Could Be a Busy 2018 for Mergers and Acquisitions

Guild Mortgage, which ranks 21st among all home lenders, has agreed to purchase Cornerstone Mortgage, St. Louis, marking the first acquisition of 2018, a year in which the rollup of smaller lending shops could be significant.


January 18, 2018 - Inside Mortgage Finance

Nonbanks Expanded Footprint in Agency Mortgage Servicing Market During Fourth Quarter of 2017

Nonbanks will likely account for over half of outstanding agency single-family servicing by the end of 2018 if market trends continue as they have in recent years.


January 18, 2018 - Inside Mortgage Finance

Mortgage Market at a Glance, January 19, 2018

Weekly mortgage rates and application survey data.


January 18, 2018 - IMFnews

CFPB Chief Wants to Make Sure Consumers are Protected and Companies Aren’t Misteated

The first RFI from the CFPB will be on Civil Investigative Demands, which are issued during an enforcement investigation.


January 18, 2018 - IMFnews

The Trend is Clear: Nonbanks Poised to Have a 50 Percent Agency MSR Share

The nonbank share of agency servicing grew by 4.7 percentage points during 2017.


January 17, 2018 - IMFnews

In 4Q17, A Sharp Increase in Prime Jumbo MBS, and Expanded-Credit Deals

Expanded-credit MBS – which include loans with alternative documentation, non-qualified mortgages and nonprime loans – hit $4.08 billion in 2017…


January 17, 2018 - IMFnews

A Slight Production Decline for BofA in 4Q17, but MB Profits Take a Hit

According to figures compiled by Inside Mortgage Finance, BofA ranked sixth among first lien lenders in the third quarter, but U.S. Bank isn’t too far behind in the number seven spot.


January 17, 2018 - IMFnews

New Residential to Raise $440 Million Via Stock Sale. More Acquisitions Ahead?

The REIT has a current market cap (share price multiplied by number of units outstanding) of $5.27 billion.


January 16, 2018 - IMFnews

BB&T to Invest in ‘Fintech’ Companies Including Those with a Mortgage Focus

Banks and nonbanks alike are in a rush to build digital lending platforms that are consumer friendly and result in cost savings...


January 16, 2018 - IMFnews

Ginnie Mae MBS Program Faltered in 2017…

The agency – which still doesn’t have a permanent president – issued $443.2 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year.


January 16, 2018 - IMFnews

Wells Fargo Reports Lower Originations for 4Q17, Lower Mortgage Profits and Branch Closings

Thanks to the new bill signed by President Trump, Wells enjoyed a $3.35 billion after tax benefit. However, the company also recorded a $3.25 billion pre-tax expense tied to “litigation accruals for a variety of matters, including mortgage-related regulatory investigations..."


January 16, 2018 - IMFnews

Residential Production at Chase Fell 9.2 Percent in 4Q17; Servicing Revenue Nicked

Chase continues to grow the volume of residential whole loans kept on its balance sheet: $197.3 billion at yearend compared to $181.2 billion at the end of 2016.


January 12, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Announces Revised Method for Calculating Initial MIP for HECM Refis. FHA has modified the formula for calculating the initial mortgage insurance premium for Home Equity Conversion Mortgage refinances with case numbers assigned on or after Sept. 19, 2017. The formula was modified on Nov. 14, 2017. The change conforms to the final rule FHA implemented last year to strengthen the HECM program. The revised formula has been posted on FHA’s HECM page on hud.gov, FHA Connection Release Notes, dated Dec. 28, 2017. The FHAC Release Notes outline the changes and processing instructions for lenders to calculate the initial MIP for HECM refis. HUD Releases Guide to Help Borrowers and Disaster Victims Avoid Foreclosure. The Department of Housing and Urban Development has released the Homeowners Guide to Success to help struggling homeowners and ...


January 12, 2018 - Inside FHA/VA Lending

Florida District Court Allows U.S. to Intervene in FHA FCA Suit v. BofA

A federal district court in Florida has agreed to a government motion to intervene in a False Claims Act lawsuit against Bank of America in order to reach a settlement on behalf of a relator. Bruce Jacobs, a foreclosure attorney and relator in South Florida, filed the lawsuit. A former Miami prosecutor, he now represents homeowners in foreclosure proceedings initiated by financial institutions, including BofA. In his lawsuit, Jacobs alleged that BofA submitted false claims in violation of the FCA. Specifically, the bank allegedly submitted endorsements with unauthorized signatures and false mortgage assignments that would confer standing to foreclose. In addition, Jacobs additionally asserted a reverse FCA claim alleging that BofA made false statements when entering into the 2012 National Mortgage Settlement (NMS) consent judgment with the U.S. government. The landmark $25 billion settlement with ...


January 12, 2018 - Inside FHA/VA Lending

VA Clarifies Buyout Criteria for Uninsured, Unguaranteed Loans

Ginnie Mae is redefining the term “defective mortgage” to remind issuers of their obligations when confronted by a mortgage that does not have federal insurance or guarantee. The action also clarifies options issuers may consider in dealing with defective mortgages. Under their guarantee agreement with Ginnie, issuers are required to cure, buy out or replace single-family mortgages or manufactured home loans that are missing the requisite FHA insurance or VA or U.S. Department of Agriculture guarantee within 120 days after the issue date of the mortgage-backed securities. Ginnie made clear that mortgages that do not have federal insurance or guarantee by the deadline for final certification of the related pool or loan package are defective. In addition, mortgages that have been rejected by FHA, VA or USDA, or for which federal insurance or guarantee have been withdrawn, are defective as ...


January 12, 2018 - Inside FHA/VA Lending

VA Clarifies Rules for Allowing Use Of Third-Party Verification Services

VA lenders may use third-party vendors to verify borrower income, employment and asset information subject to certain conditions, according to the Department of Veterans Affairs. Officials issued the clarification in response to lender inquiries regarding the use of third parties to determine if a borrower qualifies for a VA loan. The agency said it would accept third-party verifications if lenders are fully responsible for verifying the accuracy of information the borrower provided in the loan application. Lenders must initiate and receive all verifications of employment and deposits, requests for credit reports, and credit information. When a real estate broker/agent or any other party requests information regarding borrower income, employment or personal assets, the lender must identify the requester as its agent and ensure that any report is returned directly to them. In addition, the lender must disclose the ...


January 12, 2018 - Inside FHA/VA Lending

VA, Ginnie Mae Working on Long- Term Cures to Rapid Refinancing

Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan-churning problem. Lenders urged Congress and the two agencies to be cautious in prescribing fixes that could potentially cut off VA funding. Jeffrey London, director of the VA Loan Guaranty Service, said a proposed rule that includes a net tangible benefits test for veterans as well as seasoning and recoupment requirements will be issued soon. The VA is also planning to require upfront lender disclosure of the terms and benefits of a streamline or cash-out refi, including the recoupment period of the new transaction. Even though serial refinancing is not systemic to the VA portfolio, it has grown in ...


January 12, 2018 - Inside Nonconforming Markets

News Briefs

PennyMac Financial Services launched its broker origination channel this week. While the company hasn’t originated many jumbo mortgages in the past year, it said the broker channel “will provide opportunities to grow volumes in attractive segments,” including jumbos. Carrington Mortgage Services recently launched some nonprime products in its wholesale channel. The lender allows for credit scores as low as 500 and loan amounts up to ... [Includes five briefs]


January 12, 2018 - IMFnews

Short Takes: PNC Bank's Mortgage Revenue Declined/KBRA Expects Growth in PLS/Fed Reserve Bank of NY Positive on 2018 Outlook

PNC Bank made a relatively paltry $29 million in noninterest income on its mortgage business in the fourth quarter of 2017.


January 12, 2018 - IMFnews

Housing Finance Reform Needed for Mortgage Servicing Landscape

Issues related to servicing are often overlooked when it comes to discussions on housing-finance reform, according to an Urban Institute paper published this week.


January 12, 2018 - Inside MBS & ABS

Key Lender Protections in the CMBS Space Appear to be Breaking Down, Moody’s Frets

Critical components of loan structural quality in the commercial MBS space seem to be deteriorating, particularly when it comes to single-borrower deals, according to a new report from Moody’s Investors Service.


January 11, 2018 - Inside Mortgage Finance

Galante Paper Recommends Restructuring FHA As a Self-Sustaining Government Corporation Within HUD

A former FHA commissioner called for the restructuring of the agency as a government corporation within the Department of Housing and Urban Development with its own separate appropriation, budget control and risk-management capabilities.


January 11, 2018 - Inside Mortgage Finance

House Panel Considers HMDA, CFPB Legislation, Industry Awaits Final Senate Action on Other Bills

Members of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit convened early this week to consider legislation that would affect Home Mortgage Disclosure Act enforcement and certain institutions regulated by the Consumer Financial Protection Bureau – mostly smaller players.


January 11, 2018 - Inside Mortgage Finance

FHFA OIG Says Uptick in Fannie Mae, Freddie Mac ARMs Purchase Warrants Monitoring

The Federal Housing Finance Agency Office of Inspector General said the recent uptick in the purchase of adjustable rate mortgages by Fannie Mae and Freddie Mac, especially since November 2016, bears watching as a potential emerging risk.


January 11, 2018 - Inside Mortgage Finance

Change to Mortgage Interest Deduction Could Prompt Some Borrowers to Shift from Home-Equity Loans to Cash-Out Refis

Borrowers looking to convert home equity into cash could lean toward cash-out refinances rather than home-equity loans due to changes in the newly enacted tax bill.


January 11, 2018 - Inside Mortgage Finance

Servicing Issues Should Be Part of Housing-Finance Reform, Risks of Inefficient Servicing Growing

Mortgage servicing is mistakenly overlooked when it comes to housing-finance reform discus-sions and research on the business is sparse, according to an Urban Institute paper released this week.


January 11, 2018 - Inside Mortgage Finance

Sen. Warren Questions Whether CFPB AD Mulvaney Data Collection Shut Down is Impeding Examiners

Sen. Elizabeth Warren, D-MA, has questioned whether Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, inappropriately capitalized on some Inspector General con-cerns about the agency’s data security to unjustifiably freeze the bureau’s collection of consumer per-sonal information, thereby compromising examiner oversight functions.


Poll

How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.
11 to 30. We’re feeling slightly bullish.
31 or more. We’re in expansion mode.
None. We’re staying right where we are, for now.
We’re cutting back.

vote to see results