Mortgage Originators

Browse articles from all of our Newsletters related to Mortgage Originators.

September 25, 2018 - IMFnews

Sprout Executive David Akre: Make Non-QMs or Cut Overhead. Your Choice

Matt Nichols, CEO of Deephaven Mortgage, said the share of LOs that actually offer non-QMs is in the single digits.

September 24, 2018 - IMFnews

Short Takes: Freddie Doesn’t Mince Words / Thinking of Going Public? / Why Amazon and Google Won’t Buy an Existing Franchise / Moogle or Moogage? / Texas Capital’s Deposit Base / Mortgage Job Cuts at USAA

Meanwhile, Hindman doesn’t see Amazon or Google buying an existing mortgage franchise...

September 24, 2018 - IMFnews

Nonprime Lender Deephaven Taps LoanScorecard’s AU Software

Recently, Inside Nonconforming Markets published its second quarter ranking of expanded-credit lenders, but Deephaven did not appear.

September 24, 2018 - IMFnews

MBA Backs User Fee to Fund Tech Upgrades for USDA Program

The FHA has proposed a similar user fee but has been denied repeatedly by Congress…

September 24, 2018 - IMFnews

IO Originations Spiked by 25 Percent in 2Q18

Angel Oak Lending, Citadel Servicing and Navy Federal Credit Union all had IO gains of more than 60 percent during the quarter.

September 21, 2018 - Inside FHA/VA Lending

Around the Industry

HUD Nails Florida Company with Discrimination Charge. The Department of Housing and Urban Development charged a Florida company and its owners with housing discrimination for intentionally targeting Hispanic homeowners in a predatory mortgage modification scheme that increased, rather than decreased, their risk of foreclosure. HUD filed charges of discrimination under the Fair Housing Act against Advocate Law Groups of Florida and owners Jon B. Lindeman, Jr., and Ephigenia Lindeman. The defendants allegedly ran a deceptive advertising campaign for loan modification that aired on Spanish-language radio and television throughout Florida. Homeowners were offered $500 gift cards as an enticement to sign for a loan modification. Ginnie Mae MBS Outstanding Increases. Ginnie Mae mortgage-backed securities issuance totaled $38.9 billion in August, raising its ...

September 21, 2018 - Inside FHA/VA Lending

USDA Mulls Broader Application of Manufactured Housing Pilots

The U.S. Department of Agriculture’s Rural Housing Service is considering extending two manufactured-housing pilot programs implemented in a number of states under the USDA Section 502 single-family housing guaranteed loan program. The planned expansion would provide a more balanced regional representation that would help RHS measure the pilots’ impact. Launched in August 2016, the first pilot involves financing of existing manufactured homes. The second pilot involves ownership requirements for new energy-efficient manufactured and modular houses in land-lease communities operating on a nonprofit basis. State requests to join one or both pilots are submitted to the USDA state director of rural development. The deputy administrator of single-family housing decides on the request. Decisions would be based on the date the request was received and whether the ...

September 21, 2018 - Inside FHA/VA Lending

MBA Backs USDA User Fee, Calls for Transparency, Accountability

The Mortgage Bankers Association expressed support for a proposed collection of a system user fee in the U.S. Department of Agriculture’s single-family housing guaranteed loan program while underscoring the need for transparency and accountability regarding the use of the funds. “The [USDA] should be clear that it is limited in the scope of acceptable uses for the funds and that these funds will not be used for unspecified or unrelated activities,” the trade group said in its comment letter. The call for closer oversight of the proposed user-fees was among several recommendations the MBA made regarding the USDA proposal. Published in the July 13 Federal Register, the proposal would authorize the USDA to assess and collect a $25 fee from lenders for information technology upgrades. The fee will be collected through the USDA’s Lender Loan Closing (LLC) system when a loan goes to ...

September 21, 2018 - Inside FHA/VA Lending

FHA Delinquency Rates Decline Significantly in August from July

The delinquency rates on the approximately 7.9 million FHA loans outstanding fell by 20.7 basis points in August from the previous month, according to an Inside FHA/VA Lending analysis of FHA data. About 11.24 percent of FHA loans were in various stages of delinquency at the end of August. An estimated 4.73 percent of active FHA loans were 30-60 days past due while 3.90 percent were 90-plus days seriously delinquent at midpoint of the third quarter. FHA loans that were 60 to 90 days delinquent accounted for 1.56 percent of FHA loans outstanding while 1.05 percent of loans were in foreclosure. Texas, which accounted for 805,535 of total FHA loans being serviced, reported 11.4 percent of the loans as delinquent or in foreclosure. Second-place California showed a 7.39 percent delinquency/foreclosure rate overall. The state’s foreclosure rate was at a very low 0.53 percent. New Jersey and Louisiana ... [Chart]

September 21, 2018 - Inside FHA/VA Lending

September Issuance of FHA Final Condominium Reforms Unlikely

It looks like the Department of Housing and Urban Development will not be able meet its September target date for rolling out its long-awaited FHA condominium reform rule. Such is the consensus among stakeholders whose hopes were raised when HUD Secretary Ben Carson told the House Financial Services Committee in June that he would be issuing the rule this month. “HUD and the Office of Information and Regulatory Affairs (within the Office of Management and Budget) want to release the rules with the updated Single Family Handbook and they are still working on that,” said a real estate industry executive. He added that despite what Carson said at the committee hearing, “September is not likely for a release.” As of press time, the final condo reform rule had not yet been delivered for OMB review, a process that in the past has taken months to complete. In contrast, it took about a ...

September 21, 2018 - Inside FHA/VA Lending

Government Share of Originations Down Slightly in Second Quarter

Originations of government-insured mortgages rose 11.2 percent from the first to the second quarter of 2018, according to Inside Mortgage Finance estimates. That increase was slightly lower than the 17.1 percent gain in total first-lien originations over that period. The big winner for the second quarter was the jumbo sector, where loan volume surged 33.5 percent from the first three months of the year. On a year-to-date basis, government lending was down 12.6 percent from the first half of 2017. This reflects the steep decline in refinance lending in general, which affected FHA/VA production significantly. Jumbo lending was also down, by 6.6 percent, from the first six months of last year, but the conventional-conforming market saw a 4.2 percent gain at the midway point in 2018. FHA/VA loans accounted for 22.8 percent of first-lien originations in the first half of 2018. The government share for all of last year was ... [Chart]

September 21, 2018 - Inside FHA/VA Lending

Third-Party Originators Account for Out-sized Share of FHA/VA Market

Correspondent lenders and mortgage brokers continue to account for an unusually large share of FHA and VA lending, according to a new analysis by Inside FHA/VA Lending. During the first six months of 2018, correspondent-lending programs accounted for 53.3 percent of government-insured mortgage production, according to survey data reported by a broad cross-section of the market. At the same time, correspondent production accounted for 46.4 percent of conventional-conforming lending and a mere 16.1 percent of the non-agency jumbo market. The heavy reliance on agency securitization in both the conventional and government-insured sectors helps explain the higher levels of correspondent production. For many smaller shops, it is more economical to sell production to aggregators than pay the overhead costs of dealing directly with the agencies. In the government-insured sector, some banks are ... [Chart]

September 21, 2018 - IMFnews

What We’re Hearing: Freddie Mac Puts on its Banker Hat / Some Interesting Policy Moves by Mel Watt / Nonbank Liquidity is a Good Thing, Right? / The Progressives v. the Traditionalists / Eat a Peach: CFPB Moves an Office to Atlanta

The idea to ban nonbanks from the FHLB system (via the captive loophole) increasingly looks like a head-scratcher....

September 21, 2018 - Inside Nonconforming Markets

News Briefs

New Penn Financial launched a non-agency product for condominiums last week. The SmartCondo offering allows for two non-warrantable features, which are characteristics that exclude the loans from being delivered to Fannie Mae or Freddie Mac. For example, New Penn will allow a higher portion of commercial space, reduced pre-sale requirements and increased flexibility for single-entity ownership, among other features. The mortgages are available for ... [Includes one brief]

September 21, 2018 - Inside Nonconforming Markets

ARM Originations Up 25 Percent in Second Quarter

Originations of adjustable-rate mortgages increased by 25.0 percent on a quarterly basis in the second quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $55.0 billion of ARMs were originated in the second quarter. The increase looks to be tied to seasonal factors and trends in interest rates. Through the first half of 2018, an estimated $99.0 billion of ARMs were originated, down 2.0 percent from ... [Includes one data chart]

September 21, 2018 - Inside Nonconforming Markets

Signs of Expanded-Credit Slowdown in MBS

Issuance of expanded-credit mortgage-backed securities is moving at a steady pace, but deal sizes are declining and loan seasoning is increasing, suggesting a slowdown in originations. Redwood Trust is set to issue a $362.7 million deal, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. It’s the fourth expanded-credit MBS of the year from Redwood, including a $520.5 million issuance in May and a $417.0 million deal in July. The average seasoning ...

September 21, 2018 - Inside Nonconforming Markets

IO Originations Up in 2Q, Down at Midyear

Originations of interest-only mortgages increased in the second quarter, but not enough to move production ahead of the pace set halfway through 2017, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 15 lenders originated $5.08 billion of IOs in the second quarter, a 25.2 percent increase from the previous period. Through the first six months of the year, the lenders had $9.13 billion of IO originations ... [Includes one data chart]

September 21, 2018 - IMFnews

Industry Lauds Passage of Bill to Fix the VA ‘Orphan’ Loan Mess

The Zeldin bill passed by a vote of 48-0.

September 21, 2018 - IMFnews

Wells Fargo Announces Job Cuts. The Mortgage Damage Could Total 3,097 Positions

The megabank is not commenting on how the cuts might affect specific business units...

September 21, 2018 - IMFnews

Deephaven Set to Issue its Largest Nonprime MBS to Date

Mortgages from 74 lenders will be included in the deal…

September 20, 2018 - Inside Mortgage Finance

Wells Expects Originations in Third Quarter to Be In Line with 2Q, Continued Pressure on Margins

Originations at the largest U.S. mortgage lender in the third quarter will look a lot like production in the previous quarter, according to John Shrewsberry, a senior executive vice president and chief financial officer at Wells Fargo.

September 20, 2018 - Inside Mortgage Finance

Mortgage Market at a Glance, September 21, 2018

Weekly mortgage rates and application survey data.

September 20, 2018 - IMFnews

Surprise: Non-Agency Option Dings GSE Conforming-Jumbo Business

More conventional loans that fit under the GSE loan limits for high-cost markets are ending up in non-agency mortgage-backed securities…

September 20, 2018 - IMFnews

Tough Times, but Wells Fargo Expects to Gain Lending Market Share

Wells SVP John Shrewsberry: “In first mortgage, I would say, we should outperform whatever the market is delivering…”

September 19, 2018 - IMFnews

Short Takes: Freddie Talking to Potential MSR Borrowers / Fannie’s New HLTV Refi Option / Plenty of GSE-Eligible Loans in New JPM MBS / LendingTree’s $10k Prize / A New Director at Fannie Mae

On Nov. 1, Fannie Mae will begin accepting applications for its new high loan-to-value ratio refinance product.

September 19, 2018 - IMFnews

Former Goldman Officials Launch Non-QM Wholesaler to Feed its Growing Aggregation Business

Steve Skolnik, an industry veteran with a long career in nonprime lending, was recently hired as CEO…

September 19, 2018 - IMFnews

CFPB Proposes Disclosure Sandbox

The agency specifies that a two-year testing period would be the norm.

September 19, 2018 - IMFnews

Chimera Packs GSE-Eligible Loans on Investment Properties into New Non-Agency MBS; Caliber a Top Contributor

Three nonbank lenders, all owned by PE firms, are key contributors to the deal…

September 19, 2018 - IMFnews

A Surge in Jumbo Correspondent Acquisitions

Jumbo production by correspondent lenders increased by 63.7 percent on a sequential basis…

September 18, 2018 - IMFnews

Slightly Higher Warehouse Commitment Figures Mask Worries About Price Cutting, More…

One manager criticized number-two ranked warehouse provider Texas Capital for the discounts the bank is offering, calling it “the talk of the warehouse community.”

September 18, 2018 - IMFnews

They’re Back: CFPB Advisory Boards (But with Fewer Members)

Two new members of the consumer panel come from the fintech world: Sameh Elamawy, CEO of Scratch, and Manning Field, CEO of Acorns.

September 17, 2018 - Inside the CFPB

What’s the Fate of ‘GSE Patch’ Under ATR Rule? Some Options

The CFPB should drop the current debt-to-income ratio cap and the so-called GSE patch from the qualified-mortgage definition, the Urban Institute recommends. The CFPB is required by statute to review the ability-to-repay rule, which includes the QM definition, and issue a final report on its findings by Jan. 10, 2019. One of the most important elements of the review could be the fate of the “GSE patch,” which is set to expire in January 2021, or on the day ...

September 17, 2018 - IMFnews

Short Takes: MBA’s Stevens Looks Back at the GSEs (Pre-Crisis) / A No-Bid Because of FM Watch Ties / What’s FM Watch? / Sharp Elbows? / TMS Buys Two MSR Packages, Is Hungry for More / PenFed Hires USAA Exec to Run Mortgages

It may be hard to fathom, but Fannie and Freddie once played with very sharp elbows…

September 17, 2018 - IMFnews

Parent of Church Street Mortgage Files to Go Public

If all goes well, the net proceeds will total $20.25 million.

September 17, 2018 - IMFnews

Wanted: Two Semi-Retired CEOs Who Can Run Fannie and Freddie

Then again, maybe needing a CEO is overblown. James Fenkner, a GSE shareholder, told Inside Mortgage Finance: “It is not that the CEOs are paid too little…”

September 17, 2018 - IMFnews

GSE Purchase Business Up Again, but Refis Rise as Well

The refi surge may be attributable to more cash-out transactions.

September 17, 2018 - IMFnews

Wells Fargo Ready to Break its Jumbo MBS Drought

Wells Fargo accounted for 15.0 percent of all jumbo mortgages originated during the first half of 2018…

September 14, 2018 - Inside The GSEs

Purchase-Mortgage Business Up Again, Plus Unlikely Refi Jump

Single-family mortgage business at Fannie Mae and Freddie Mac grew substantially from July to August, according to an Inside The GSEs analysis of mortgage-backed securities data. The two firms issued $79.34 billion of single-family MBS last month, a 20.5 percent increase from July’s volume. That brought year-to-date volume to $523.40 billion, down 6.1 percent from the first eight months of 2017. [Includes two data charts.]

September 14, 2018 - Inside Mortgage Trends

On-Time Guarantee Loans Draw Homebuyers

Variations of a mortgage program that guarantees a $1,000 credit toward borrowers’ closing costs if the loan does not close on time are now a big hit in the market, according to some lenders. Under such programs, lenders provide a guarantee on the timely closing of their loan. If for some reason, closing is delayed or postponed beyond the initial closing date, the originator will pay the borrower $1,000 to cover closing costs. Inside Mortgage Trends looked at three mortgage lenders and found ...

September 14, 2018 - Inside Mortgage Trends

Stearns Launches ‘Mini’ M&A Partnerships

Stearns Lending this week rolled out a new partnership program to acquire equity stakes in independent retail mortgage banking franchises as it tries to broaden its origination base. Under the company’s “Preferred Partner Platform,” Stearns will offer its lending partners technology and operational support as well as capital markets assistance, said company CEO David Schneider. Participating lenders are able to maintain their brand identity, management and culture. The first acquisition was ...

September 14, 2018 - Inside Mortgage Trends

Lenders Seek Uniform Standard for Ad Disclosures

The Mortgage Bankers Association is working to reduce the speed talking and fine print that tend to accompany advertisements for mortgages. Currently, ad-disclosure requirements for mortgages vary by state. In August, Illinois became the first state to adopt a uniform ad-disclosure protocol supported by the MBA. Mortgage ads in the Prairie State must now include a reference to the Nationwide Multistate Licensing System and Registry’s consumer access website and cite ...

September 14, 2018 - Inside Mortgage Trends

Correspondents Rebounded Slightly in Jumbo Production During 2Q18

Correspondent-based mortgage production operations lost some ground in the conventional-conforming market during the second quarter of 2018 but made up some of it in an unlikely sector: jumbo originations. Jumbo production by correspondent lenders increased by a huge 63.7 percent from the first to the second quarter of 2018, according to a new Inside Mortgage Trends analysis. The data come from Inside Mortgage Finance surveys from lenders ... [Includes two data charts]

September 14, 2018 - IMFnews

What We’re Hearing: Freddie Charter Creep? No, Just a Supplemental Service / Caliber Thinking About Going Public? / The Role Das Played in First Data’s Successful IPO / Dimon v. Trump – Bring it On! / Dimon, a Nervous Mess? / New Penn Rolls Out Piggyback HELOC

JPMorgan is the parent company of the nation’s second largest residential lender, Chase. Trump last decade started a small mortgage brokerage operation in Long Island and then killed it...

September 14, 2018 - IMFnews

Questions Linger on Caliber and ‘Full Documentation’

The differences are tied to how the rating services define full documentation.

September 14, 2018 - IMFnews

CFPB Encourages Alternative Consumer Disclosures, Hints at More No-Action Letters

But the program has been a dud...

September 14, 2018 - Inside MBS & ABS

MBS Issuer SG Capital Launches Wholesale Mortgage Originator to Feed a Growing Aggregation Business

SG Capital Partners, a boutique investment banking firm chock full of former Goldman Sachs executives, has launched a new wholesale lender to originate non-qualified mortgages, most of which will wind up in MBS deals.

September 13, 2018 - Inside Mortgage Finance

Borrowers Look for Lenders that Offer Digital Mortgage Features and Some Person-to-Person Communication

After years of talk about “digital mortgages,” now is the time that lenders should adopt such technology, according to Henry Cason, a senior vice president at Fannie Mae and head of digital products for the government-sponsored enterprise’s single-family business.

September 13, 2018 - IMFnews

Short Takes: Late for an Anniversary / GSE Reform: A Solution Searching for a Problem / ClearEdge Lending Ramps Up / Warehousing the Non-QM Market / LendingTree Shareholders Not Smiling Right Now

Silvergate Bank is actively providing warehouse lines of credit to non-QM lenders and we understand that Comerica is now sticking its toe in the water…

September 13, 2018 - IMFnews

Stearns Agrees to Buy Stake in $3.2 Billion Lender as Part of PPP Effort

The pending deal marks the second acquisition in Stearns’ new Preferred Partner Platform initiative…

September 13, 2018 - IMFnews

Growing Quickly, Tech Vendor Blend Names Former Treasury Secretary Jacob Lew to Advisory Board

The number of mortgage lenders using technology from Blend has quadrupled in the past year…


Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.
The wholesale/table funder. They’re taking the financial risk.
The broker, but only for the first year. After that, the borrower is fair game.
Hard to answer. It’s a complicated issue.

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