Mortgage Lending & Servicing

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

November 17, 2017 - Inside Mortgage Trends

Mortgage Executives on the Move

Although mortgage companies are beginning to pare staff in anticipation of a seasonal production downturn, there appears to be a strong thirst for executive talent, as well as top managers looking elsewhere, according to interviews conducted over the past month by Inside Mortgage Trends. “Calls and e-mails from mortgage executives open to considering ‘a change’ usually spike at this time of year,” said Rick Glass, who runs the financial services recruitment firm that bears his name ...


November 17, 2017 - Inside Mortgage Trends

As a Group, Publicly Traded Nonbanks Post Gain in Mortgage-Banking Income

Nine publicly traded mortgage companies posted a combined $52.22 million in mortgage banking earnings for the third quarter of 2017, according to a new analysis by Inside Mortgage Trends. The group’s third-quarter results represented a healthy 86.4 percent improvement over the paltry $28.02 million they earned from their core businesses during the April-June cycle. But the aggregate figures don’t begin to describe the state of most of these nonbank ... [Includes one data chart]


November 17, 2017 - IMFnews

Angel Oak Set to Issue its Third Nonprime MBS of the Year; Bank-Statement Loans 35 Percent of the Collateral

Self-employed borrowers whose incomes were determined with bank statements account for 35.0 percent of the collateral.


November 16, 2017 - Inside Mortgage Finance

Housing Inventory Expected to Improve As Builders Focus on Smaller Homes

The shortage of affordable homes is prompting builders to ramp up new construction, including building smaller homes, according to the National Association of Realtors.


November 16, 2017 - Inside Mortgage Finance

After Months of Rumors, Cordray to Resign; For Mortgage Lenders, Enforcement is Now Key Issue

Big changes aren’t likely to take place at the Consumer Financial Protection Bureau in the after-math of Director Richard Cordray’s surprise departure at the end of this month, but industry observers expect a significant shift in enforcement and supervision when a new leader is in place.


November 16, 2017 - Inside Mortgage Finance

Texas Gets Ready to Loosen Home-Equity Regulations After Voters Approve Changes

Texas sticks out like a sore thumb in its regulation of home-equity lending, but the swelling will be reduced somewhat after Lone Star voters approved an amendment to the state’s constitution that will loosen some of the rules.


November 16, 2017 - Inside Mortgage Finance

Senate Panel Agrees on Multiple Mortgage Reforms As House Committee Passes Own Set of Provisions

Regulatory relief got a sudden and surprising boost on Capitol Hill early this week when the Senate Banking, Housing and Urban Affairs Committee unexpectedly passed a bipartisan package of provisions making it easier for lenders to extend mortgage credit to borrowers.


November 16, 2017 - Inside Mortgage Finance

FHFA Director Watt Not Expected to Act on Capital Buffer; A GSE Bill for 2018 that Might Actually Pass?

Industry stakeholders are increasingly dour on the prospect of Federal Housing Finance Agency Director Mel Watt acting to rectify the government-sponsored enterprises’ capital buffer issue before yearend, but there’s growing hope that bipartisan reform legislation might be enacted next year.


November 16, 2017 - Inside Mortgage Finance

Senate Tax Reform Plan Wouldn’t Touch Mortgage Interest Deduction but Industry Cites Other Faults

Republican leaders in the Senate detailed their tax reform legislation late last week, with some differences compared with the bill making its way through the House. While the Senate bill would leave the existing mortgage interest deduction largely untouched, participants in the housing industry raised a number of other concerns.


November 16, 2017 - Inside Mortgage Finance

Publicly Traded Mortgage Firms Not Exactly Setting The World on Fire. Is a Major Shake Up Coming?

Most of the nation’s six publicly traded mortgage firms have seen their share prices get smacked around this year. The exception is PennyMac Financial Services, a stand-out in a group that’s struggling to keep its head above water.


November 16, 2017 - Inside Mortgage Finance

MMIF Value, Capital Ratio Decline in FY 2017 Due to Rising HECM Claims; Calls to Remove Program from Fund Increase

The Mutual Mortgage Insurance Fund’s economic net worth and capital reserve ratio declined in fiscal year 2017 due to losses in the FHA Home Equity Conversion Mortgage portfolio caused by rising claims, according to the agency’s annual report to Congress released this week. While the fund remains above its minimum capital level, both the economic net worth and the capital ratio fell from levels at the end of fiscal 2016, the report said. Specifically, the fund’s…


November 16, 2017 - Inside Mortgage Finance

Conventional-Conforming Market Tapped into Surging Refi Business in 3Q17, Other Sectors Up

Conventional mortgages that meet Fannie Mae and Freddie Mac purchase guidelines remained the biggest source of new home lending during the third quarter, although other product types saw sol-id increases in origination volume as well.


November 16, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance, November 17, 2017

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


November 16, 2017 - IMFnews

Short Takes: Another Mortgage Trade Group Chief Announces Retirement / Redfin’s Mortgage Arm Growing Slowly / Annaly Executives Continue to Buy Stock / World Debt and U.S. Mortgage Debt / Resitrader’s Growth

Annaly executives have purchased $24.3 million worth of company stock in the open market since 2011...


November 16, 2017 - IMFnews

Academy Mortgage Production EVP Departs

Nemec oversaw a retail network of 250 branches...


November 16, 2017 - IMFnews

House Panel Passes Bill That Would Override State Usury Laws

It remains to be seen whether the language of the bill will be incorporated into the regulatory relief package…


November 16, 2017 - IMFnews

Lenders Start Your Engines: Texas Loosens Home-Equity Regulations

The proposition revises the strict fee limits that Texas places on home-equity lines…


November 16, 2017 - IMFnews

Conventional-Conforming Market Tapped into Surging Refi Business in 3Q17

Roughly $269 billion of conventional-conforming loans were originated from July through September, according to Inside Mortgage Finance...


November 15, 2017 - IMFnews

Mortgage M&A Heats Up, Mid America Inks Deal to Buy Oklahoma Lenders

More M&A deals are expected in the quarters ahead…


November 15, 2017 - IMFnews

MBA Calls for Changes to FHA’s Loan Review System

Lenders have complained about misleading and confusing labels when self-reporting loan defects…


November 15, 2017 - IMFnews

Speculation Mounts: More Banks May Exit Mortgages

Meanwhile, there’s already speculation that Capital One – known for its prowess in credit cards – might eventually re-enter the mortgage business in one way or another.


November 14, 2017 - IMFnews

HMDA Analysis: Higher-Priced Lending Spikes

Some $28.61 billion of non-government-insured higher-priced mortgages were originated in 2016, up 28.9 percent from the previous year…


November 14, 2017 - IMFnews

PIMCO’s Stake in PHH Rises to 15.8 Percent. However…

PIMCO also has been buying non-agency mortgages, holding the paper in one of the funds it manages.


November 14, 2017 - IMFnews

House Panel Begins Markup of Mortgage Bills. ‘Mortgage Choice’ Should Pass…

Also likely to pass: a bill that would exempt from property appraisal requirements a mortgage of $250,000 or less if it appears on the loan creditor’s balance sheet for at least three years…


November 14, 2017 - IMFnews

Tough Times for Reverse Lending as More Players Head for the Exit

Today, just three depositories remain among the top 25 HECM lenders: First Bank (ranked 16th at mid-year), The Federal Savings Bank (19th) and Quontic Bank, FSB (21st).


November 14, 2017 - IMFnews

Correspondent Share of FHA Loans Nears the 49 Percent Mark

Correspondent programs are most dominant in the FHA market, perhaps reflecting a preference among large producers to have recourse…


November 13, 2017 - IMFnews

Short Takes: Time for a Hearing on Why There’s No Housing Inventory / The Russians Invest in Mortgages / Angel Oak’s Latest MBS / A Nonprime REIT? / Eight New LOs for Minnesota MB

Maybe a REIT is the way to go in nonprime...


November 13, 2017 - IMFnews

Nonprime Lenders Aim to Avoid a Mistake of the Past: Risk Layering

Angel Oak Mortgage Solutions, Atlanta, said it has underwriting standards that avoid risk-layering…


November 13, 2017 - IMFnews

KBW: A Change to the GSE Dividend Sweep ‘Unlikely’

KBW estimates that if the corporate tax rate falls, Fannie and Freddie, combined, would have to fork over to Treasury an estimated $13 billion to $19 billion…


November 13, 2017 - IMFnews

Invictus Includes Loans Aggregated by Shelter Growth in Latest Nonprime MBS

Mortgages aggregated by Shelter Growth account for 43.5 percent of the collateral.


November 10, 2017 - Inside FHA/VA Lending

USDA to Reevaluate ‘Rural’ Area Designation for Housing Programs

The U.S. Department of Agriculture has issued guidance for conducting its mandated five-year review to identify areas that no longer qualify as rural for housing programs. For purposes of establishing eligibility to participate in USDA direct and indirect single-family housing guaranteed programs, “rural” and “rural area” are defined as “any open country, or any place, town, village or city which is not part or associated with an urban area.” To be designated as rural or rural area, the area must have a population not exceeding 2,500 inhabitants or a population of more than 2,500 up to 10,000, “if it is rural in character.” An area with more than 10,000 inhabitants up to 20,000 may be classified as rural if it is not within a standard metropolitan statistical area and “has a serious lack of credit for lower and middle-income families, as determined by the [USDA] secretary or the secretary of the ...


November 10, 2017 - Inside FHA/VA Lending

MBA Chief Calls for ‘Targeted’ FHA Reforms to Broaden Credit Access

Targeted reform of the FHA housing program, not broad structural changes, can potentially improve borrowers’ access to credit while clarifying the rules for lenders and protecting taxpayers, a top industry executive told Congress earlier this month. Testifying before the House Financial Services Subcommittee on Housing and Insurance, David Stevens, president and CEO of the Mortgage Bankers Association, said FHA reforms do not entail changes to the program’s scope, such as FHA market share or its customer base. Stevens noted that first time or low- to moderate-income borrowers are typical FHA borrowers. “The structure and coverage of FHA insurance has served borrowers and lenders well,” he said. “It should not be reduced or otherwise altered.” The Mutual Mortgage Insurance Fund capital ratios and thresholds are likewise appropriate, though options to improve the fund’s long-term solvency should ...


November 10, 2017 - Inside FHA/VA Lending

MBA Calls for Changes to LRS, Remedies for Lender Complaints

FHA lenders think the new Loan Review System is a “modern and streamlined system” that is less user-friendly than Neighborhood Watch, according to the Mortgage Bankers Association. In a letter to the Department of Housing and Urban Development, the MBA called on the FHA to continue its ongoing discussion with lenders and other industry stakeholders on how the improve the LRS and its response timelines. Implemented last May, the LRS is an electronic platform for monitoring and reviewing the quality of single-family mortgages that FHA has insured. It replaced the post-endorsement technical review performed by the FHA Connection/Underwriting Review System (URS), review functions for post-closing test cases submitted by direct endorsement lenders, and lender self-reporting functions in Neighborhood Watch. The LRS also includes a defect taxonomy, which features a list of ...


November 10, 2017 - Inside FHA/VA Lending

Will Net Tangible Benefit Test Stop Churning? Yes, Analysts Say

A new net tangible benefit test for ensuring that a VA borrower benefits from a refinancing appears to be the obvious solution to the VA’s churning problem, according to analysts at Bank of America Merrill Lynch (BAML). Modeled after the FHA net tangible benefit test, the test seems to be a “foregone conclusion” for VA, analysts said. A Ginnie Mae/VA task force is currently working to resolve the problem, which is causing rapid prepayments in Ginnie mortgage-backed securities and raising serious doubts as to whether aggressive refinancing truly benefits veterans and servicemembers. “There is a critical need to ensure that veteran borrowers are not harmed by repeated refinancings through VA’s Interest Rate Reduction Refinance Loan program,” said Mortgage Bankers Association President/CEO David Stevens during a recent appearance before the House Financial Services Committee. IRRRLs, also referred to ...


November 10, 2017 - Inside FHA/VA Lending

Analysts Expect Positive Actuarial Results for FHA Insurance Fund

Analysts are predicting continued positive results in the forthcoming actuarial report to Congress on the status of the FHA Mutual Mortgage Insurance Fund. The FY 2017 annual report is expected to show stable FHA financials, which could prompt renewed industry calls for a cut to the annual mortgage insurance premium, according to a Bank of America Merrill Lynch analysis. Rising home prices and loan-to-value curing are likely to suppress forecasted losses in the MMIF’s single-family forward portfolio, enabling the fund to stay above its mandated 2.0 percent capital reserve ratio, analysts said. However, the BAML analysts see a “low likelihood of an actual cut in MIPs.” Although Department of Housing and UrbanDevelopment Secretary Ben Carson said he would study MIP reduction once a new FHA commissioner is confirmed, the Trump administration is less likely to ...


November 10, 2017 - Inside FHA/VA Lending

Correspondent Platforms Feast on FHA, VA Securitization Market

Correspondent-based lending operations are accounting for a growing share of the FHA and VA home loans pooled in Ginnie Mae mortgage-backed securities, according to a new analysis and ranking by Inside FHA/VA Lending. In fact, correspondent originations are the only production channel to see year-over-year growth in FHA and VA business through the first nine months of 2017. Retail and wholesale-broker production is down for both FHA and VA loans. Correspondent programs are most dominant in the FHA market, perhaps reflecting a preference among large producers to have recourse to a primary-market lender if the government later finds defects in how the loan was originated. Correspondents accounted for 48.7 percent of FHA loans pooled in Ginnie MBS during the first nine months of the year, up from 43.1 percent in all of 2016. Volume was up 1.7 percent from the ... [Charts]


November 10, 2017 - IMFnews

The Red Ink Kept Flowing at Walter in 3Q17; Revenues Down 15 Percent

Walter CEO Tony Renzi: “Our operating performance is improving in many areas, and we are continuing our financial restructuring efforts…"


November 10, 2017 - IMFnews

Senate’s Tax Reform Bill Maintains Higher Limit for Mortgage Interest Deduction but Housing Industry Warns of Other Faults

NAR’s Mendenhall: such provisions “can turn the American Dream into a nightmare for families, as the rug is pulled out from under them.”


November 9, 2017 - Inside Mortgage Finance

GSEs at Risk for Treasury Draw If Congress Lowers Corporate Tax Rate

A corporate tax cut, now being debated on Capitol Hill, could wreak havoc on the government-sponsored enterprises’ deferred tax assets and result in Fannie Mae and Freddie Mac having to take draws from the U.S. Treasury.


November 9, 2017 - Inside Mortgage Finance

Tough Times for Reverse Lending as Some Large Nonbanks Plan to Exit and FHA Premiums Are Up

Two of the nation’s largest reverse mortgage lending platforms are on the auction block with a third contemplating an exit via a servicing sale. Coupled with higher upfront premiums on the product, all is not well with the sector.


November 9, 2017 - Inside Mortgage Finance

Lenders Tout Downpayment Protection Option for Borrowers Against Unpredictable Market Downturns

A few mortgage lenders are offering a purchase-loan option that provides protection to borrowers who make a downpayment on their house and later have to sell at a loss due to a decline in value.


November 9, 2017 - Inside Mortgage Finance

Pundits Take Their Turn Dissecting Housing- Finance Reform Options in House Hearing

The House Financial Services Subcommittee on Housing and Insurance convened a third hearing on housing-finance reform this week, this time hearing from Washington think tanks. A staffer said the hearings are meant to lay “a groundwork for legislation the committee is working on to finally build a housing finance system that is sustainable for homeowners, for hardworking taxpayers, and for our economy.”


November 9, 2017 - Inside Mortgage Finance

Capital One Quits Mortgage Finance; Will More Lenders Follow in Its Tracks?

Capital One this week announced that it’s throwing in the towel on mortgage finance, laying off staff and shuttering offices in an attempt to improve profits. And now comes the big question: will other banks follow in its wake?


November 9, 2017 - Inside Mortgage Finance

Under New HMDA Regime, Lenders Must Adapt to New Platform, Face New Fair Lending Vulnerabilities

As the mortgage industry prepares for a substantially expanded Home Mortgage Disclosure Act data collection and reporting environment from the Consumer Financial Protection Bureau, compliance experts are getting a clearer sense of some of the biggest challenges lenders will face – most notably on the technology front as well as fair lending scrutiny.


November 9, 2017 - Inside Mortgage Finance

PennyMac Focuses on Originations and Servicing Growth With Launch of Wholesale Channel, Tech Development

PennyMac Financial Services is set to launch broker-direct originations, complementing its correspondent production and retail originations. Officials note that in-house technology development plays a major role in the nonbank’s efforts to increase originations and servicing.


November 9, 2017 - Inside Mortgage Finance

House Tax Reform Bill Expected to Have a Negative Impact On Housing, Industry Pushes for Numerous Adjustments

Tax reform legislation detailed last week by Republican leaders in the House would have a nega-tive impact on the housing market, according to some industry analysts. The bill prompted a strong re-action from industry participants, who are hoping for a variety of changes in the legislation.


November 9, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance, November 10, 2017

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


November 9, 2017 - IMFnews

SFIG Details Key Performance Indicators for Deal Agents on Non-Agency MBS

While the concept was introduced more than a year ago, the specific duties for a deal agent remained a work in progress…


November 9, 2017 - Inside Mortgage Finance

FHA Market Share Drifting Lower as Private MIs And VA Post Bigger Gains During Third Quarter

Private mortgage insurers remained busy during the third quarter of 2017, but the VA loan guar-anty sector saw the biggest growth in primary MI business, a new Inside Mortgage Finance ranking and analysis reveals.


November 9, 2017 - IMFnews

Short Takes: $250K a Year in Severance for Impac President / Capital One will Remain in Multifamily / Goldman Wins Fannie Mae Bid / Quicken Gets Some Company at the Top / A New Hire for AmeriFirst

Although Capital One is exiting single-family lending, the bank will continue to provide “specialized" multifamily financing...


Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.
No. It’s still difficult compliance/regulatory-wise.
Maybe. It’s under consideration.
Not now. But things could change as 2018 progresses.

vote to see results