Mortgage Originators

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

May 26, 2017 - Inside FHA/VA Lending

VA LPOs School Lenders on Lending To Incapacitated Vet Borrowers

Loan processing for incompetent veterans presents significant challenges to VA lenders, requiring strict compliance with special guidance on top of the basic VA underwriting rules. One challenge is dealing with legal appointees who assist and represent veterans in legal transactions, such as applying for a mortgage loan. There are ways to determine whether a veteran is incompetent, said Mark Jamison, loan production officer (LPO) with the VA Cleveland Regional Center, during the VA Lender Conference in Kansas City, MO, last month. The Department of Veterans Affairs or a probate court can deem a veteran incompetent due to severe injury, medical conditions, mental disorders, and financial instability, he said. A mortgage lender could make a determination of incompetency if the initial purchase contract documents were signed by an attorney-in-fact, the veteran divulged the incompetency, or the ...


May 26, 2017 - Inside FHA/VA Lending

VA Explains Certificate of Eligibility Process, Entitlement Restoration

Requesting a certificate of eligibility (COE) may be just a click away but the process is not without pitfalls, cautioned a panel of VA loan production officers during an industry conference. The panelists – Maxine Henry, program analyst with the VA Central Office; Ricardo Holloway, loan production officer with the Atlanta Regional Loan Center; and Paula Jesse, assistant loan production officer with the Denver RLC – urged veterans to order their COE early in the loan-application process to avoid any hiccups. A COE verifies to the lender that the veteran/borrower is eligible for a VA loan. Ordering early would help prevent last-minute delays, said Henry. “It is a problem if the veteran is at the closing table and still does not have a COE because it was ordered just a few days prior to closing,” Henry noted. Other potential hitches are incorrect documentation or receiving a VA determination that the ...


May 26, 2017 - Inside FHA/VA Lending

FCA Action Against Lenders Slows As DOJ’s List of FHA Targets Shrinks

False Claims Act enforcement against FHA lenders appears to have slowed with no new cases being filed by the Department of Justice or referred by the Department of Housing and Urban Development’s inspector general for nearly a year. Neither agency has gone after any lender for alleged False Claims Act violations since May of last year when the Department of Justice intervened in an FCA case brought by a whistleblower against Guild Mortgage, an FHA direct endorsement lender. The complaint alleged that San Diego-based Guild Mortgage knowingly approved loans that violated FHA rules while falsely certifying compliance with those rules. The alleged violations occurred between 2006 and 2011, resulting in “tens of millions of dollars” in losses to HUD. The case is pending in federal district court in Washington, DC. Indications are the FCA cases involving FHA lenders have ...


May 26, 2017 - Inside FHA/VA Lending

Groups Oppose Proposed IT Fee, Suggest Other Funding Sources

The Mortgage Bankers Association is pushing back against a controversial budget proposal to charge FHA lenders a fee to pay for technology upgrades to help protect the Mutual Mortgage Insurance Fund. Rather than charging lenders an “administrative fee,” the MBA prefers that funding improvements to FHA’s aging information systems be done through the appropriations process. “We need to be working with [the Department of Housing and Urban Development] and Congress to find ways to fund technology upgrades and risk-management improvements,” MBA Senior Vice President Pete Mills told Inside FHA/VA Lending. The White House’s budget plan for FY 2018 incorporates verbatim a proposal by the Obama administration to charge FHA lenders an administrative fee to support the upgrades needed to reduce MMI Fund losses. According to the previous administration’s estimate, the ...


May 26, 2017 - Inside FHA/VA Lending

Housing Finance Reform Should Include FHA Lending Reform

The Financial Services Roundtable called for changes to FHA’s legal liability standards to encourage banks to make more FHA loans. Increased risks of False Claims Act enforcement and concerns about multi-million dollar penalties even for the slightest underwriting errors have forced banks to restrict their FHA lending. The top 10 FHA lenders, once dominated by banks, are now nondepository institutions, which accounted for 83 percent of FHA forward originations in the first quarter of 2017. Wells Fargo, once the leader in FHA lending, has dropped to a woeful 20th place in the rankings. “Some federal officials have expressed concern about the capacity of the government to evaluate the qualifications of lenders that are not subject to regulation by federal agencies,” the FSR said. The group also noted the credit overlays many FHA lenders have added to the loans due to ...


May 26, 2017 - Inside FHA/VA Lending

VA Production Drops in 1Q17 as Refinancing Train Loses Steam

VA originations saw a significant drop during the first three months of 2017 as refinancing continued to slow, according to an Inside FHA/VA Lending analysis of agency data. Lenders closed $42.9 billion of VA loans in the first quarter, down 28.1 percent from the previous quarter The numbers show purchase mortgages continued to drive VA originations. A slowdown in VA refinancing appears to be the key factor in the decline. Refis accounted for 27.7 percent of total VA production, down from the fourth quarter of 2016. A change in Ginnie Mae’s pooling rules aimed at discouraging churning has taken much of the steam out of the once-booming VA refi segment. The steep drop in volume ended an upward quarter-to-quarter trend in VA originations last year. Eight of the top 10 VA lenders saw huge quarter-over-quarter declines in their VA lending, with top-ranked Freedom Mortgage posting the largest ... [ Charts ]


May 26, 2017 - IMFnews

What We’re Hearing: Don’t Bet on Court Outcomes / Randy May Want to Wait on the Curtains / No President, No Cry / About that $627 Million… / What About a Partial Capital Cushion for the GSEs? / A Busy Week for Incenter, Phoenix

If Trump is successful, presumably the money would flow through to the bottom line of Fannie and Freddie and counted toward earnings.


May 26, 2017 - Inside Nonconforming Markets

Wall Street, Banks Differ on QM Standard

Participants in the non-agency mortgage-backed security market and banks have proposed different ways of how to address debt-to-income ratio standards for qualified mortgages. The Structured Finance Industry Group wants the Consumer Financial Protection Bureau to consider speeding the timeline for ending the so-called QM patch, while the American Bankers Association seeks a permanent fix for the DTI issue. The debate centers on the 43.0 percent DTI ratio standard for QMs ...


May 26, 2017 - IMFnews

In the Mortgage M&A Game, Small and Medium-Sized Shops are Targets

In years past, RPM has been a selective buyer of mostly smaller shops.


May 26, 2017 - IMFnews

CFPB to Assess Effectiveness of the ATR/QM Rule

To assess the effectiveness of the rule in meeting the agency’s goals, the CFPB will examine the impact of major provisions of the measure on a set of consumer outcomes, including mortgage costs…


May 26, 2017 - IMFnews

A Unique Deal from Credit Suisse: A Non-Agency MBS Backed by Seasoned FHA Mortgages

Credit Suisse was a major issuer of post-crisis jumbo MBS, but hasn’t come to market with a jumbo deal since the fourth quarter of 2015.


May 26, 2017 - IMFnews

Depositories Increased Their MBS Holdings in 1Q17 – With a Boost from Large Thrifts

Much of the growth in MBS investments came from two large thrifts: Charles Schwab Bank and E*Trade Bank…


May 25, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


May 25, 2017 - Inside Mortgage Finance

Home Price Appreciation, Improved Credit, Looser Underwriting Boosting Demand for Cash-Out Refis

An uptick in mortgage interest rates has reduced rate-term refinance volume but demand from borrowers for cash-out refis and home-equity loans appears to remain relatively strong. “When we look at the landscape for home-equity extraction, we see potential tailwinds from loan-to-value ratio and credit curing combined with slightly less stringent lending standards helping bolster borrower demand,” analysts at Wells Fargo Securities said in a report last week. Borrower LTV ratios have been helped...


May 25, 2017 - Inside Mortgage Finance

Warehouse Commitment Levels Declined Slightly In 1Q17; Is Profitability of Nonbanks a Concern?

Warehouse lenders ended the first quarter of 2017 with an estimated $59.0 billion of commitments on their books, a 4.8 percent sequential decline, according to exclusive survey figures compiled by Inside Mortgage Finance. Compared to a year ago, commitments were up 13.5 percent. However, many nonbanks sign commitment deals but don’t always draw on the lines very heavily. A case in point was the first quarter: the drop in commitments was benign compared to the overall decline in originations. Industrywide, residential lending fell by 33.6 percent from the fourth quarter. The good news for the warehouse sector is...[Includes one data table]


May 25, 2017 - Inside Mortgage Finance

Third-Party Originators Fared Slightly Better Than Retail in Declining First-Quarter Market

Correspondent lenders and mortgage brokers took slightly less severe declines in origination volume in early 2017 than was seen in the retail channel, according to a new Inside Mortgage Finance ranking and analysis. All three production channels were down sharply as total first-lien mortgage originations tumbled 33.6 percent from the fourth quarter of 2016. The retail segment saw the biggest decline, dropping 34.6 percent to an estimated $221.0 billion. Retail production typically features...[Includes four data tables]


May 25, 2017 - IMFnews

Short Takes: Trump Copies Obama’s FHA Tech-Fee Idea / More Wholesale Lenders? / Home Point Deal Progresses / CHLA Presses for FHA Premium Cut / A New Director at Impac Mortgage

When’s the last time a publicly traded mortgage company was sold in a stock transaction?


May 25, 2017 - IMFnews

New Product Watch: Guild’s 1% Downpayment Loan; Stearns Pushes Temporary Rate Buydown

Stearns said that temporary interest rate buy-downs are good for borrowers who expect their incomes to increase in the relatively near future.


May 25, 2017 - IMFnews

Nonprime Lender Citadel Ready to Enter the Small-Balance Commercial Market

Citadel’s small-balance commercial program will include mixed-use retail and other loan types.


May 25, 2017 - IMFnews

The Supreme Court Could be the Final Venue for PHH Corp. v. CFPB

One constitutional issue that garnered some attention: whether a multi-member commission is more legitimate than a single director…


May 25, 2017 - IMFnews

TPO Lenders Fared Slightly Better Than Retail in a Declining 1Q17 Market

The retail segment saw the biggest decline, dropping 34.6 percent to an estimated $221.0 billion.


May 24, 2017 - IMFnews

Short Takes: ABA Wants Explicit Guaranty on MBS / Does it Matter? / Trump Wants to Kill USDA Loan Program / Rep. Hensarling an Optimist but… / A Promotion at Arch MI

In the new Trump budget, the White House takes an ax to the USDA’s rural single-family housing direct loan program.


May 24, 2017 - IMFnews

MBA Chief: Don’t Leave Necessary GSE Reforms to the FHFA

MBA's Stevens once again slams those in favor of a GSE “recap and release” plan, saying this group consists “primarily [of] stock speculators who are most concerned about personal profits” rather than the future of the U.S. housing system.”


May 24, 2017 - IMFnews

Trump Aims to ‘Restructure’ the CFPB and Slash Agency Spending by 22.4 Percent

The Trump White House wants to slash the budget of the CFPB, an independent agency it has no control over...


May 24, 2017 - IMFnews

GSE Purchase Business Showed Promise in April, but...

In April, Wells Fargo was the top seller of mortgages to Fannie and Freddie with $9.02 billion, followed by Quicken Loans and JPMorgan Chase…


May 23, 2017 - IMFnews

Short Takes: PHH Gets an ‘Outperform’ Rating / Woman Sentenced in Freddie Mac Fraud / A Quart of Milk with that Fannie MBS? / Title Giant Buys Auction Firm / CMC Asks for CFPB Guidance

A new research note from Wedbush Securities calls PHH an “outperform,” but also reduces the target price on the company’s stock...


May 23, 2017 - IMFnews

Appeals Court to Hear Oral Arguments Wednesday in PHH Corp. v. CFPB

Sam Kazman, general counsel for the Competitive Enterprise Institute, says the hearing involves fundamental issues about the basic structure of our government…


May 23, 2017 - IMFnews

Law Professors Slam Hensarling’s CHOICE Act, Defend the CFPB

The law professors believe the CHOICE Act would take the mortgage industry back to the recent past, which was characterized by risky lending and lax regulatory oversight.


May 23, 2017 - IMFnews

KBW Says Leave the GSE Dividend Alone, Go with More Risk-Sharing Deals

Meanwhile, although GSE risk sharing seems popular in some circles, FHFA itself admitted recently that some of this coverage has come at premium cost to Fannie and Freddie.


May 23, 2017 - IMFnews

Nonbank Mortgage Firms Report Dour 1Q17 Earnings

PHH Mortgage continues to ooze losses as well…


May 22, 2017 - Inside the CFPB

Other News in Brief

Treasury Eyeballing CFPB Rules as Part of Regulatory Relief Review. The Treasury Department is focused on a wide range of regulatory requirements where simple communication and clarification of the regulatory intent is warranted, such as the CFPB’s ability-to-repay rule, the integrated disclosure rule and the Home Mortgage Disclosure Act rule, Craig Phillips, counselor to the Treasury secretary, said during a symposium in New York City last week, according to Inside Mortgage Finance.... Dodd-Frank Changes to be Discussed. House Financial Services Committee Chairman Jeb Hensarling, R-TX, is scheduled to discuss his Dodd-Frank Act alternative, H.R. 10, the Financial CHOICE Act, Tuesday of this week at an event at the American Enterprise Institute....


May 22, 2017 - Inside the CFPB

Other Compliance News: HUD Wants Industry Input on Regulatory Burden

In response to President Trump’s recent executive orders on regulatory reform, the Department of Housing and Urban Development announced it is looking for industry feedback on any of its existing regulations that might be outdated, ineffective or excessively burdensome. As required by Executive Order 13777, “Reducing Regulation and Controlling Regulatory Costs,” HUD said it is in the process of establishing a regulatory task force charged with identifying agency regulations that should be repealed, replaced or modified. As part of that review, the agency is inviting the public to weigh in on the adequacy and relevancy of its current regulatory framework. “HUD’s goal in conducting the review is to make the department’s regulations more effective and less burdensome in achieving HUD’s ...


May 22, 2017 - Inside the CFPB

CFPB Opens Another Can of RESPA Worms in Investigating Zillow

The CFPB has stepped back into the Real Estate Settlement Procedures Act enforcement ring by probing Zillow over issues related to co-marketing. The probe of the company’s co-marketing initiative was disclosed to the public earlier this month by Zillow CFO Kathleen Philips during the company’s first quarter earnings conference call with investors. “Over the past two years, the CFPB has been reviewing our program for compliance with RESPA,” Philips said. “Recently, the CFPB requested additional information and documents from us as part of their evaluation, which we are working with them on,” she added. “We believe our co-marketing program has, and continues to, allow agents and lenders to comply with the law while using our product.” This could be another ...


May 22, 2017 - Inside the CFPB

FSR Calls for White House to Change CFPB Structure, Rules

The Financial Services Roundtable advised the Trump administration that the structure of the CFPB needs to be changed, and that the agency should revise a handful of its key mortgage rulemakings, most notably the ability-to-repay/qualified mortgage rule, the Home Mortgage Disclosure Act rule and the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, or TRID. The FSR’s call came in a detailed response to President Trump’s Executive Order 13777, “Reducing Regulation and Controlling Regulatory Costs,” issued earlier this year, directing the Treasury Department to conduct an assessment of financial regulations to evaluate how they align with the White House’s core principles of financial regulation. In terms of the bureau itself, the industry organization said the governance structure ...


May 22, 2017 - Inside the CFPB

Hensarling Slams Cordray for Appearing at Democrat Event

CFPB Director Richard Cordray, in an unusual move, attended the weekly caucus meeting of the Democrats in the House of Representatives last week. That prompted his chief GOP antagonist, House Financial Services Committee Chairman Jeb Hensarling of Texas, to say Cordray’s appearance shows that Democrats use the CFPB as a political war machine. “Everyone knows Mr. Cordray will likely leave the CFPB soon and pursue political office in Ohio again, but his attendance at what amounts to nothing more than a Democrat pep rally shows just how partisan and politicized he and his supposed ‘independent’ agency truly are,” the Republican said. According to Hensarling, liberal elites in Washington, DC, want to keep the bureau unaccountable to the American people so ...


May 22, 2017 - IMFnews

Chances of a ‘Win’ by GSE Stock Speculators Dimming?

Since Watt’s recent testimony, GSE speculators like Pershing Square and Fairholme have been mostly quiet.


May 22, 2017 - IMFnews

LendingHome Gets Fannie Mae Approvals, Hires Former Nationstar CFO

Since its founding in mid-2014, LendingHome has originated $1 billion in loans.


May 22, 2017 - IMFnews

GSE Buybacks Tied to Legacy Loans Fade Further Into the Rearview…

In a number of cases, GSE seller-servicers cleaned up pipelines of pending or disputed buyback demands.


May 22, 2017 - IMFnews

CFPB Did Not Fully Secure Sensitive Enforcement Data, OIG Finds

The CFPB responded that “none of the identified opportunities for improvement ever resulted in any breach of confidential information outside the bureau.”


May 19, 2017 - Inside The GSEs

GSE 1-Family Business Dropped In April, Despite Purchase Gains

The purchase-mortgage business showed some green shoots in April, but not enough to offset another drop in refinance activity, according to a new Inside The GSEs ranking and analysis. Fannie Mae and Freddie Mac securitized $31.84 billion of purchase mortgages last month, a 12.2 percent increase from March. It was the third straight monthly gain in purchase-mortgage volume, bringing year-to-date activity to $123.46 billion, a 13.6 percent improvement over the same period in 2016. Purchase mortgages accounted for over half of GSE business in April for the first time since August of last year. But the refinance side of the business fell again in April, to just $25.49 billion. That was down 17.8...


May 19, 2017 - Inside Mortgage Trends

Newfi Hopes New Brand Will Spur Production

Newfi Lending, an online residential mortgage lender, is looking forward to a big origination year with the consolidation of its product lines under the “Newfi Lending” brand. A multi-channel lender, the Emeryville, CA-based lender previously operated as Nexera Holdings under two national brands – Newfi for its consumer-direct retail business and Bluestream Lending for third-party originations. In conjunction with the change, Newfi’s wholesale-broker business will now be ...


May 19, 2017 - Inside Mortgage Trends

Blend Wants to Help ‘Digitize’ Mortgages

Since its founding roughly five years ago, mortgage technology vendor Blend has landed five top-10 residential lenders for its digital origination platform and 20 customers overall. It also has raised $60 million in seed money from investors, but has no current plans to tap the private equity market for cash, which is probably a good sign. “We may raise more money, but not at the moment,” said company Co-founder and Chief Executive Officer Nima Ghamsari. But is Blend profitable ...


May 19, 2017 - IMFnews

What We’re Hearing: Let the M&A Party Begin? / Stocks Long Overdue for a Sell Off? / Walter's Tony Renzi Earns his Paycheck? / Caliber and Citadel Promote Non-QM Loans / A New Hire for Amherst

But can Walter/Ditech grow its lending business in a highly competitive market?


May 19, 2017 - IMFnews

Letting the GSEs Build a (New) Capital Buffer: The Devil’s in the Details

The only way Fannie and Freddie are going to lose money is if there’s a hedging loss. And even then, it will be a non-cash charge…


May 19, 2017 - IMFnews

CFPB Responds to Rep. Hensarling’s Accusation of Politicization

CFPB Director Richard Cordray would love to sit in on a GOP caucus as well.


May 19, 2017 - IMFnews

REIT MBS Holdings Grew Slightly in 1Q17, but Change in CRTs Could Boost Volume

Some 91.8 percent of REIT MBS holdings ($211.95 billion) are in agency securities…


May 18, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


May 18, 2017 - Inside Mortgage Finance

Co-Marketing Now on CFPB RESPA Enforcement Radar as Zillow Reveals Agency Investigation

The latest twist in the Consumer Financial Protection Bureau’s enforcement of the Real Estate Settlement Procedures Act involves certain co-marketing activities. It has recently come to light that the CFPB is investigating Zillow for possible RESPA violations apparently having to do with the firm’s practice of co-marketing with loan officers, real estate agents and mortgage lenders. “For years, many industry participants wondered if allowing their real estate agents or loan officers to engage in co-marketing on Zillow Group applications and websites posed a risk to their companies under RESPA. The industry may soon know the answer,” Richard Andreano, a partner at the Ballard Spahr law firm in Washington, DC, noted in a recent online blog post. Andreano’s post cited...


May 18, 2017 - Inside Mortgage Finance

Major Product Categories All Saw Big Drops In 1Q17 Originations; GSE Market Pounded

Nonprime products such as subprime and non-qualified mortgage loans held up better than industry mainstays during the sharp drop in origination volume in the first quarter of this year, according to a new Inside Mortgage Finance ranking and analysis. Conventional conforming remained the biggest component of the market, accounting for 53.0 percent of first-lien mortgage originations in the first three months of 2017. But the estimated $204.0 billion of such loans produced during the period was down 36.6 percent from the fourth quarter. Government-insured lending was...[Includes two data tables]


May 18, 2017 - IMFnews

Short Takes: About Those GSE Dividend Payments… / Maybe Half a Payment? An IOU? / Money Owed is Money Owed / Mnuchin Targets Second-Half for GSE Reform / New Penn Names New COO

What if the FHFA cuts the payments and hands Treasury an IOU? The possibilities are endless...


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