Mortgage Originators

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

July 21, 2017 - Inside FHA/VA Lending

Around the Industry

Bipartisan Flood Bill Introduced in Senate. The Senate Committee on Banking, Housing and Urban Affairs will soon consider a bipartisan bill introduced this week that would keep the National Flood Insurance Program funded for six more years and create new risk mitigation procedures for communities to follow. Senate Banking Committee Chairman Mike Crapo, R-ID, and ranking Democrat Sherrod Brown, OH, said the bill would serve as a template for consideration by the whole committee. The Senate bill does not include core provisions in the House version, including the development of a private flood insurance market to complement the NFIP. In addition, the bill does not call for cuts in the reimbursement rate for Write-Your-Own flood-insurance carriers that service NFIP policies. However, amendments are likely, according to Crapo and Brown. Meanwhile, the ...


July 21, 2017 - Inside FHA/VA Lending

Millennials Seeking to Buy Homes In Affordable Markets, Data Show

Affordability and job availability are driving millennials to seek homes in more affordable markets, particularly in the upper Midwest, according to Ellie Mae data for the month of May. Ellie Mae’s Millennial Tracker, which monitors millennial mortgage applications during specific times, found that the higher percentages of loans made to millennial borrowers are in Hutchinson and Austin, MN, and Wahpeton and Williston, ND. Anniston-Oxford-Jacksonville, AL, rounded out the top-five markets. Ellie Mae defines millennials as applicants born between 1980 and 1999. Data showed that 48 percent of millennial borrowers who closed loans in May were single. In Hutchinson, for example, the majority of borrowers were single men. “This suggests millennials may be embracing homeownership in these areas for reasons other than what we have historically seen, which was family formation,” explained ...


July 21, 2017 - Inside FHA/VA Lending

House Panel Earmarks $50 Million For Home Counseling Assistance

The House Appropriations Committee has recommended $50 million to fund the Department of Housing and Urban Development’s FY 2018 housing counseling assistance to homebuyers, homeowners and low and moderate-income renters. The allocation is $3 million more than the Trump administration had requested and $5 million below the amount appropriated for housing counseling in fiscal year 2017. In its budget report, the committee noted the continued improvement in the economy, which has resulted in fewer foreclosures. Foreclosure filings from 2016 were reported on 933,000 properties, representing a 10-year low and a 14 percent reduction from 2015, the report pointed out. “The foreclosure rate has stayed within a historically normal range for three years, even with the pipeline of legacy foreclosures resulting from the housing bubble,” it said. In addition, the bill retains language that ...


July 21, 2017 - Inside FHA/VA Lending

VA Emphasizes Need for Testing Individual Water Supply for Vets

The Department of Veterans Affairs is warning VA lenders to adhere strictly to the agency’s requirements for safe potable water for veteran homebuyers. The agency recently provided clarification and guidance concerning the testing of private, individual water-supply systems for properties backed by VA mortgage loans. The VA has long treated potable water as a health and safety issue, including as part of its minimum property requirements that water used for drinking, washing and other in-house uses must be safe for consumption. According to the guidance, which went into effect on July 19, 2017, a disinterested third party must perform all water testing. This includes the collection and transport of water samples from the supply source. Only the local health authority, a commercial testing laboratory, a licensed sanitary engineer, or any other party that is acceptable to the local health agency may test ...


July 21, 2017 - Inside FHA/VA Lending

VA Clarifies, Underscores Use of Tidewater Process in Appraisals

The Department of Veterans Affairs is ratcheting up enforcement of its so-called Tidewater process to prevent veterans from paying more than the appraised value of the property when using a VA loan. In recent guidance, the VA reaffirmed its 2003 Tidewater Appraisal Initiative to help reduce the number of cases where appraisers have been asked to reconsider their initial appraisal, which had come in below the sales price. The guidance emphasizes procedures for improving communication of new sales data to VA fee and staff appraisers for a reevaluation of the low initial appraisal. “These guidelines should help limit the number of cases that reach the reconsideration-of-value phase and also provide a more timely response to those cases that are submitted for reconsideration,” the VA explained. The Tidewater procedure provides a designated “point of contact” (POC) the opportunity to ...


July 21, 2017 - Inside FHA/VA Lending

RHS Spells out Review Procedures For Approved Lenders, Servicers

The U.S. Department of Agriculture’s Rural Housing Service has clarified procedures for reevaluating approved lenders’ and servicers’ eligibility under the RHS Single Family Housing Guaranteed Loan Program. The guidance also provides procedures for updating lender information. The RHS intends to review and document lender eligibility in accordance with regulation and program requirements to protect government assets and minimize taxpayer losses. Office of Management and Budget regulations require federal agencies to reevaluate and record lender and servicer eligibility every two years. “For the [USDA single family loan guarantee program], it requires making sure that lenders and servicers participating in federal credit programs meet all applicable financial and program requirements,” wrote Richard Davis, acting RHS administrator. To meet the requirements, lenders must ...


July 21, 2017 - Inside FHA/VA Lending

MRB Suspends Lender’s Authority To Originate, Service FHA Loans

The Department of Housing and Urban Development’s lender disciplinary arm, the Mortgagee Review Board, has suspended a Pennsylvania FHA lender from originating or underwriting any new agency-insured loans. In addition, HUD’s enforcement center suspended owner John Seckel from doing business with the federal government. According to HUD, Seckle Capital of Newton, PA, and its owner submitted statements and certifications purporting to show the firm was properly audited by independent certified public accountants, when, in fact, it was not. The MRB said Seckel and his firm engaged in a “years-long pattern” of deceit and falsehoods. The action is the result of HUD’s ongoing effort to hold the mortgage industry accountable for the loans it originates, underwrites or services. According to HUD’s Neighborhood Watch website, Seckel Capital has a compare ratio of 164 percent. Of the 557 loans the ...


July 21, 2017 - Inside Nonconforming Markets

Wells Sends Mixed Signals on Jumbo IOs

John Shrewsberry, CFO of Wells Fargo, told the bank’s investors last week that Wells is taking some steps to boost mortgage originations, including an emphasis on interest-only loans. “We are making some modest changes to generate new loan originations, including offering interest-only jumbo mortgage loans to high quality borrowers ...,” Shrewsberry said during Wells’ earnings call. However, when asked for further details, Tom Goyda, a spokesperson for Wells, downplayed ...


July 21, 2017 - IMFnews

What We’re Hearing: A Good Quarter for Angel Oak, MBS Plans for Citadel / Sprout Sprouting? / Freddie About to Make Splash in SFR Market? / Trump, the Russians (Soviets) and a Housing Solution? / Not-Happy Birthday: Dodd-Frank Turns Seven

A housing crisis in America? Maybe the Russians can help...


July 21, 2017 - IMFnews

Solid Gains for Non-Mortgage ABS in 2Q17 – Thanks, in Part, to Pizza

A lot of the ABS oomph came from the $2.08 billion whole-business securitization by Domino’s Pizza...


July 21, 2017 - IMFnews

In Senate Hearing, Community Lenders Fight for Secondary Market Access, the ‘Cash Window’

At a GSE reform hearing, Sen. Mike Crapo, R-ID, chairman of the Senate Banking Committee, called small lenders “fixtures in their communities...”


July 20, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


July 20, 2017 - Inside Mortgage Finance

‘Cautious’ Appraisals and Tight Underwriting Seen as Limiting Home Price Appreciation

Home prices aren’t increasing nearly as much as they have in other times when the inventory of homes for sale was low, according to analysts at Capital Economics. They suggest that “cautious” appraised values and tight underwriting by lenders have limited home price appreciation. Home prices are currently rising at an annual rate of around 6.0 percent. According to Capital Economics, current inventory levels and the measure of buyer and seller traffic separately suggest that annual house price growth should currently exceed 10.0 percent. “Although there is no hard data on the subject, we suspect one factor is that cautious home appraisers are preventing larger price gains,” the analysts said. Since early 2015, appraised home values have...


July 20, 2017 - IMFnews

Short Takes: NYSE-Listed Firm Selling MSR Portfolio via MountainView / Former Ginnie Chief Tozer Heads to PennyMac / No Reason Given / Galante’s Ocwen Holdings / Earnings from Black Knight and MGIC

Former Ginnie Mae President Ted Tozer will join the board of PennyMac Financial Services, the nation's fourth largest home lender, in August.


July 20, 2017 - Inside Mortgage Finance

Looking to Boost Originations, Wells Will Amp Up Interest-Only Mortgages for Jumbo Borrowers

Wells Fargo plans to increase originations by putting an emphasis on interest-only mortgages, according to John Shrewsberry, the bank’s CFO. “We are making some modest changes to generate new loan originations, including offering interest-only jumbo mortgage loans to high quality borrowers,” Shrewsberry said late last week during Wells’ earnings call for the second quarter. Wells had...


July 20, 2017 - Inside Mortgage Finance

More Shoes Drop at Walter: Delisting of Stock Possible, Layoffs and Concerns About Its Debt Restructuring

It hasn’t been a pretty month for Walter Investment Management, the publicly traded parent company of the nation’s eighth largest servicer. And it could get even uglier by the time summer is out. Not only is Walter in danger of being kicked off the New York Stock Exchange – for having a share price of less than $1.00 for too many days – but investors appear to have given up on the company and the idea that a restructuring, now in progress, will yield positive results. If Walter is...


July 20, 2017 - Inside Mortgage Finance

Early Look at 2Q17 Lending: A Mixed Bag at Big Banks; Nonbanks like UWM are Bullish

The nation’s megabanks have started reporting second-quarter results, revealing a mixed bag when it comes to residential originations, according to a new analysis from Inside Mortgage Finance. The nation’s largest home lender, Wells Fargo, so far, has turned in the strongest performance of the group, funding $56.0 billion of product, a handsome 27.3 percent improvement from the first quarter of the year. Bank of America held its own with a 15.8 percent sequential improvement and U.S. Bank hiked its production game by a more modest 10.2 percent. And then there are...[Includes one data table]


July 20, 2017 - IMFnews

Invictus Packages a Variety of Mortgages into Nonprime MBS; Greenbox the Top Contributor

GreenBox was the top contributor to the new nonprime MBS with Sprout Mortgage a close second…


July 20, 2017 - IMFnews

CFPB Issues Proposal to Address the TRID ‘Black Hole’

Currently, lenders are permitted, under certain limited circumstances, to use revised estimates…


July 20, 2017 - IMFnews

An Early Look at 2Q17 Production: A Mixed Bag at the Mega Banks; Nonbanks like UWM are Bullish

“Last year we did about $23 billion in originations and this year I expect us to hit between $27 billion and $30 billion,” said UWM CEO Mat Ishbia.


July 19, 2017 - IMFnews

Mortgage Applications Heat Up for the Week

Applications are heading northward again...


July 19, 2017 - IMFnews

Utah-Based Nonbank Buys Industry Vet’s First Mortgage of Oklahoma

A press statement on the sale included no production or servicing information for either company…


July 19, 2017 - IMFnews

2Q17 Results: A 10 Percent Gain in Originations for U.S. Bancorp

The bank’s servicing portfolio remained just about flat at June 30, coming in at $232.4 billion...


July 19, 2017 - IMFnews

Most Mortgage Gripes Plunge – Except for Loan Servicing

Specialty servicers Ocwen and Ditech Financial ranked third and fifth, respectively, in mortgage complaints during the first six months of 2017, according to Inside the CFPB.


July 18, 2017 - IMFnews

Short Takes: EverBank CEO Now the Head of LenderLive / Strong Volumes at Skyline / Refi Shops Hurting / Walter Files Layoff Notice on Irving Office / loanDepot Snatches Top LO from Guaranteed Rate

Walter Investment filed a WARN notice with the Texas Workforce Commission, saying it will close its Irving, TX, office and cut 437 workers...


July 18, 2017 - IMFnews

CFPB Suffers Another RESPA Blow; A Victory for Affiliated Business Arrangements?

It’s unclear whether the CFPB will appeal the decision. Bureau officials declined to comment.


July 18, 2017 - IMFnews

Walter’s Warehouse Lenders Show Patience – but for How Long?

In late May, Walter disclosed in an SEC filing that some of its previously issued financial statements could not be relied upon because of what it called an “accounting error.”


July 18, 2017 - IMFnews

Residential Production at BofA Rises 16 Percent; MSR Balances Continue to Fall

Compared to the same period a year ago, servicing balances have fallen by 19.5 percent.


July 18, 2017 - IMFnews

Flagstar Bancorp to Issue its First Post-Crisis Jumbo MBS

All of the mortgages Clayton reviewed for the MBS are safe harbor qualified mortgages.


July 18, 2017 - IMFnews

Fannie/Freddie Single-Family MBS Business Slumped in 2Q17; Bank and Thrift Business Weak

Wells Fargo saw an 18.6 percent drop in its GSE business during the April-June cycle, but the three other megabanks had much bigger declines…


July 17, 2017 - Inside the CFPB

Most Mortgage Complaints Plunge, But Gripes About Servicing Jump

Based on plunging consumer gripes sent to the CFPB, the mortgage market looks like it’s in great shape – with one glaring exception: mortgage servicing. According to a new analysis by Inside the CFPB of second quarter data from the bureau’s consumer complaint database, mortgage servicing saw a 17.5 percent jump in borrower grousing during the second quarter, but a milder 1.4 percent uptick from the first half of 2016. That latter level would be barely perceptible were it not in such stark contrast to the double-digit drop-offs seen in all other mortgage-related areas tracked by this publication. For instance, kvetching about loan modifications plummeted 81.5 percent from the first quarter of this year to the second, and [With exclusive data charts]...


July 17, 2017 - Inside the CFPB

Bureau Issues Proposed Rule to Address TRID’s ‘Black Hole’

In addition to the so-called TRID 2.0 final rule, the CFPB recently issued a notice of proposed rulemaking related to what’s known in the mortgage industry as TRID’s “black hole,” which refers to situations in which a lender is not permitted to use a closing disclosure to reset fee tolerances. More specifically, the proposal addresses when a creditor may use a Closing Disclosure (CD), instead of a Loan Estimate (LE), to determine if an estimated closing cost was disclosed in good faith and within tolerance. Currently, lenders are permitted, under certain limited circumstances, to use revised estimates, instead of the estimate originally disclosed to the borrower, to compare to the charges actually paid by or imposed on the borrower in...


July 17, 2017 - Inside the CFPB

CFPB Codifies Final Changes to TRID, Permits Sharing of the CD

The CFPB recently published long-awaited updates to its “Know Before You Owe” integrated disclosure mortgage rule, finalizing, among other things, amendments on finance charge disclosures, disclosures tied to housing assistance that a borrower receives, and when information can be shared with third parties, including real estate agents. The KBYO rule took effect in early October 2015 as part of an effort to simplify disclosures under two laws: the Truth in Lending Act and the Real Estate Settlement Procedures Act. The lending industry commonly refers to the combined disclosures as TRID, short for TILA/RESPA Integrated Disclosure rule. In a statement on the amendments, the CFPB noted that TRID “changed the total of payments calculation so that it did not make specific...


July 17, 2017 - IMFnews

Short Takes: LOs, You’ve Been Put on Notice / Citigroup’s MSR Holdings: Down 68 Percent / GOS Outlook / Two Harbors Prices Preferred Shares / Castle & Cooke Hires Compliance Manager

Mortgage gain-on-sale margins likely will be flat...


July 17, 2017 - IMFnews

Retail Channel Losing Steam in 2Q17 Agency Business; Brokers Rising

Agency mortgages produced by mortgage brokers actually rose 4.4 percent in the second quarter, even as the overall market was falling 6.1 percent.


July 17, 2017 - IMFnews

CFPB Cuts ‘Smallish’ Lenders Some HMDA Slack (Temporarily)

Under the proposal, the CFPB would increase that threshold to 500 loans through calendar years 2018 and 2019…


July 17, 2017 - IMFnews

Walter Now in Danger of Getting Kicked off the NYSE

Walter, the parent of Ditech Financial, said it expects to “acknowledge receipt” of the compliance violation and “notify the NYSE of its intention to seek to cure the deficiency…”


July 14, 2017 - Inside Mortgage Trends

California Sees Shift in Purchase-Mortgage MI

California remains the biggest purchase-mortgage market for private mortgage insurers, and it looks to be shifting away from FHA, according to a new Inside Mortgage Trends analysis of agency mortgage-backed securities data. In the second quarter of 2017, private MIs wrote coverage for $5.20 billion of California purchase mortgages – or 36.0 percent of insured loans in the state. A year ago, the private MI share was 33.1 percent. Over that period ... [Includes one data chart]


July 14, 2017 - Inside Mortgage Trends

Fed Study: Refi Ads Work, Could be Improved

Direct-mail advertising campaigns touting refinances help prompt borrowers to refi, according to a study by economists at the Federal Reserve. They added that policymakers should consider making it easier for lenders to target borrowers for refis. Seran Grundl and You Suk Kim, economists at the Fed, authored a recent working paper that examined how borrowers react to receiving ads in the mail for refinances. They said the effect of advertising on consumer mistakes and ...


July 14, 2017 - Inside Mortgage Trends

Retail Losing Steam in 2017 Agency Mortgage Business, Brokers Rising

With refinance activity tapering off, the retail production channel lost some of its edge during the second quarter of 2017, according to a new Inside Mortgage Trends analysis of agency mortgage-backed securities. Retail production accounted for 50.6 percent of the $290.63 billion of single-family mortgages securitized by Fannie Mae, Freddie Mac and Ginnie Mae in the second quarter. Including modified loans and those with no channel identification ... [Includes one data chart]


July 14, 2017 - IMFnews

What We’re Hearing: Fairholme’s Berkowitz: Watt Will Fix the GSE ‘Zero Capital’ Problem / What’s $5 Trillion Among Friends? / The Termination and Transfer Option / A Tale of Two Mortgage Giants / Renren and Sindeo?

According to Fairholme’s math, the GSEs earn over $15 billion a year, and taxpayers own 80 percent of the companies (via the senior preferred). Berkowitz values the senior stock at $100 billion…


July 14, 2017 - IMFnews

Invictus Capital Partners’ Mortgage Unit Set to Issue Second Nonprime MBS

The Invictus Opportunity Fund recently raised $35.56 million in capital.


July 14, 2017 - IMFnews

A 27 Percent Jump in Originations at Wells Fargo; JPM’s Volume Up Just 2.3 Percent

JPM reported mortgage banking income of $1.43 billion in the second quarter, off $103 million from the first quarter and down $495 million compared to 2Q16.


July 14, 2017 - IMFnews

A Strong Showing for Non-Agency MBS in 2Q17 – Thanks to S&D Deals and Re-securitizations

One of the biggest development this year has been the growing consistency in issuance of nonprime MBS.


July 13, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


July 13, 2017 - IMFnews

Short Takes: A Big Earnings Boost for Fannie and Freddie? / The Greenwich-Ameriquest Connection / IMA Selling GSE ‘Flow’ Package / Progress Ups its SFR MBS Deal / PHH Hires LenderLive Executive

The $5.5 billion (to be) paid by RBS should boost GSE earnings big time...


July 13, 2017 - IMFnews

Ginnie Mae MBS Issuance Rides the Tide of Rising Home Sales

The top three Ginnie Mae issuers in 2Q17 were PennyMac, Wells Fargo and Freedom Mortgage…


July 12, 2017 - IMFnews

HUD Mortgagee Review Board Suspends PA Lender Seckel Capital

As IMFnews went to press, Seckel was said to be in a meeting and could not be reached for comment.


July 12, 2017 - IMFnews

Flagstar Gets Rated, a Sign that it May Become More Involved in Jumbo MBS?

Jumbos accounted for 5.6 percent of Flagstar’s residential originations during the period…


July 12, 2017 - IMFnews

Prime Non-Agency MBS Issuance Tumbles a Bit in 2Q17; JPM Leads the Market

Some 15.2 percent of the mortgages in Chase’s second-quarter MBS were eligible for sale to the government-sponsored enterprises.


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