Mortgage Originators

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

July 13, 2018 - Inside FHA/VA Lending

RHS Proposes Easing Rules to Boost ‘Single Close Loan’ Program

The U.S. Department of Agriculture’s Rural Housing Service is seeking comment on a proposed rule that would enable more lenders to make combination construction-to-permanent single-family loans to borrowers. The new combination construction-to-permanent loan, or “single close loan,” allows approved lenders to close a new construction loan and receive a loan-note guarantee before construction begins. The loan expands low- and moderate-income borrowers’ access to affordable rural housing financing in areas with populations up to 35,000. The loan may be used to construct and purchase single-family homes, including manufactured homes and eligible condominiums. The amount covers purchasing a lot, reasonable construction administrative costs, contingency reserves, inspection fees, builder’s risk insurance, landscaping costs, and other authorized items, the ...


July 13, 2018 - Inside FHA/VA Lending

HUD Streamlines Inspection Rules, Eliminates FHA Inspection Roster

The Department of Housing and Urban Development has removed the FHA inspector roster to streamline inspection requirements for FHA single-family mortgage insurance. Removal of the list of approved inspectors recognizes the quality of inspections performed by certified inspectors and other qualified individuals, said HUD. HUD originally established the roster to standardize the inspection process for properties with FHA-insured mortgages. Prior to the roster, cities and states developed their own building codes, which had little uniformity or consistency with each other. Currently, the department abides by the International Residential Code (IRC), which is in use in 49 states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. The International Code Council, which developed the IRC, also certifies combination inspectors (CIs) and residential ...


July 13, 2018 - Inside FHA/VA Lending

Activists Slam DOJ’s Repeal of Consumer Protection Guides

Fair housing advocates are outraged over the Department of Justice’s recent repeal of mortgage shopping guides and other regulatory guidance, but an industry attorney says it is no big deal. Bent on eliminating agency regulation by guidance, the DOJ last week rescinded 24 guidance documents issued by a variety of government agencies. Among those revoked were guidance that provided information regarding predatory lending, consumer mortgage shopping and discrimination based on national origin. The DOJ action stems from a November 2017 memorandum issued by Attorney General Jeff Sessions rescinding guidance that either were issued improperly or were inconsistent with current law. It also complies with a presidential directive to all federal agencies in February to implement and enforce regulatory reform, which called for a review of all existing regulations, policies and guidance for possible repeal ...


July 13, 2018 - Inside FHA/VA Lending

FHA Chief’s Priority: Preserving Revenue for FHA Insurance Fund

New FHA Commissioner Brian Montgomery this week revealed that he’s in a “fix it” mode to preserve the government mortgage insurer for “generations to come.” In a wide-ranging interview with Inside FHA/VA Lending and other members of the trade press, Montgomery made it clear his goal is to make sure the Mutual Mortgage Insurance Fund – which backstops agency loans – remains in the black and above its minimum capital reserve ratio of 2.0 percent. During the interview, however, he hardly mentioned the MMIF by name but set parameters on what he would be willing to change at FHA. All his positions seem aimed at preserving and growing the fund’s cash position. First and foremost, there likely will be no cut in FHA premiums this year. Also, don’t count on any risk-sharing arrangements with private mortgage insurance firms. And last, the thought of ending the “life of loan” coverage that ...


July 13, 2018 - Inside FHA/VA Lending

MBA Asks HUD to Rethink Stance On VA Refis as Eligible Collateral

The mortgage industry this week continued to look for ways to resolve the VA streamline refi loan mess, which arose from the implementation of statutory seasoning requirements under the Dodd-Frank reform act, even as Ginnie Mae pointed to Congress to come up with a solution. At issue is approximately $500 million worth of “orphaned” VA Interest Rate Reduction Refinance Loans that are now ineligible for Ginnie Mae securitization. The Mortgage Bankers Association is asking Congress for a legislative fix but is also looking for other forms of relief. Pete Mills, MBA’s senior vice president of residential policy and member management, is trying to drum up investor interest in the orphan loans, which, for now, appear destined for the secondary “scratch and dent” market. More buyers could potentially generate higher bids for the loans and lower losses for nonbanks that could not deliver them ...


July 13, 2018 - Inside FHA/VA Lending

HUD Issues Interpretive Rule to Fix Ginnie Mae’s VA IRRRL Snafu

The Department of Housing and Urban Development has issued an interpretive rule to clear up some of the confusion created by the recently approved Dodd-Frank reform act regarding the eligibility of certain VA refinance loans to serve as Ginnie Mae collateral. Although interpretive rules are exempted from public comment under the Administrative Procedures Act, HUD is seeking public input on its interpretation of the loan-seasoning provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which President Trump signed into law on May 24, 2018. Among other things, the statute prohibits Ginnie from guaranteeing payment on a security backed by a mortgage that does not meet its seasoning requirements. The protective measure was designed to deter lenders from encouraging veterans to refinance their loans often and repeatedly. Loan churning led to faster prepayment speeds on the ...


July 13, 2018 - Inside FHA/VA Lending

Seasonal Factors Boost Ginnie Mae MBS Issuance in Second Quarter

The spring homebuying season fueled a relatively modest increase in production of Ginnie Mae single-family mortgage-backed securities during the second quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Lenders issued $98.66 billion of Ginnie MBS backed by forward mortgages during the April-May cycle. That was up 6.6 percent from the first three months of the year, but 2018 continued to lag behind the pace set in 2017 by 10.7 percent. Given current trends, annual Ginnie MBS issuance in 2018 could fall short of the $400 billion mark for the first time since 2014. The flow of FHA and VA purchase mortgages was up a solid 23.7 percent from the first to the second quarter, bringing the total for the first half of the year to $121.01 billion. However, that was down 4.7 percent from the same period in 2017. Ginnie securitized $75.02 billion of FHA purchase loans in the ... [Charts]


July 12, 2018 - Inside Mortgage Finance

GSE 1-Family Business Up Modestly in 2Q18 As Purchase-Loan Market Kicks into Gear

Collectively, Fannie Mae and Freddie Mac recorded a modest increase in new single-family business from the first quarter of 2018 to the second, but the bird’s-eye view misses some key details. [Includes three data charts.]


July 12, 2018 - Inside Mortgage Finance

Mortgage Market at a Glance, July 13, 2018

Weekly mortgage rates and application survey data.


July 12, 2018 - IMFnews

Short Takes: FHA in a Hiring Mode / CAIVRS, Old as Dirt? / Likening the GSEs to ‘The Blob’ And His Son / Level One Ponies up to the Mortgage Bar / MSR Auction from The Prestwick Group

One slide in the GSE presentation is entitled, “The Blob and the Return of the Blob,” a reference to the horror movie classics of the late 1950s…


July 12, 2018 - IMFnews

Financial Services Industry Wants ‘Binding’ Guidance from the CFPB

The American Bankers Association argues the CFPB should acknowledge the bureau is bound by the guidance it issues…


July 12, 2018 - IMFnews

PiperJaffray: Lenders are Cutting Costs but It’s Not Enough. LO Pay Must Come Down

Consultant David Lykken said some mortgage bankers believe LO comp is “untouchable,” but he strongly disagrees…


July 12, 2018 - IMFnews

NRL Mortgage Increasing Staff, Will Expand Into New Markets

A retail lender, the Houston-based NRL has increased staff at a branch in Cincinnati by 25 percent this year…


July 12, 2018 - IMFnews

GSE Single-Family Business Up Modestly in 2Q18 as Purchase Market Kicks In

All of the growth in GSE volume came from the purchase-mortgage side of the business…


July 11, 2018 - IMFnews

Short Takes: Show FHA the Money / Blame COBOL / Home Point Lops Off Some Branches / StoneHill Expands / A Key Hire for Equity Prime Mortgage

Home Point Financial, Ann Arbor, MI, said it will “transition” some of its East Coast retail branches to Northpointe Bank...


July 11, 2018 - IMFnews

PMI Analysts Look at Fannie’s New MI Pilot, Wondering If It Poses a Threat

But there’s a catch for lenders: Originators will have to pay an additional loan-level price adjustment…


July 11, 2018 - IMFnews

Verus Affiliate Set to Issue Largest Post-Crisis Nonprime MBS to Date

Roughly 44.6 percent of the loans were underwritten with alternative documentation or bank statements…


July 11, 2018 - IMFnews

New FHA Commissioner Montgomery: Risk-Sharing with PMIs not a Priority

FHA Commissioner Brian Montgomery on risk-sharing with private MI firms: Not an immediate concern…


July 11, 2018 - IMFnews

Moody’s Warns that Non-Agency Underwriting Standards Could Deteriorate

Under the Economic Growth, Regulatory Relief and Consumer Protection Act, banks with less than $10 billion in assets can receive QM treatment for certain loans...


July 11, 2018 - IMFnews

The Fed of New York Likes What it Sees on ‘Fintech’

The Fed report focused on the origination of FHA mortgages, which are generally more risky than loans eligible for sale to GSEs…


July 10, 2018 - IMFnews

Short Takes: Fannie Launches MI Pilot / MBA Reg Counsel Joins Consulting Firm / Non Bank Market Share Grows / FHFA Capital Rule Criticized

Fannie said the new lender option allows the GSE to streamline the operational requirements of participating lenders...


July 10, 2018 - IMFnews

Former Hensarling Aide Johnson Gets Acting Deputy Director Slot at the CFPB

Johnson joined the bureau late last year from the House Financial Services Committee where he held the title of senior counsel.


July 10, 2018 - IMFnews

Flagstar Hires Regions Bank Executive to Head Retail

In the first quarter of 2018, Flagstar funded $7.88 billion of home mortgages, just $960 million of which came through the retail channel...


July 10, 2018 - IMFnews

Purchase Market Springs to Life in 2Q18, Freddie Regains Market Share

The net result was a strong gain in Freddie’s share of the GSE market…


July 10, 2018 - IMFnews

Ditech’s Future: An ‘Asset’ or a ‘Stock’ Sale? Opinions Differ

Of course, Ditech has a bit of back story…


July 10, 2018 - IMFnews

On the Decline: Mortgage and Student Loan Complaints

Gripes against Experian came in at 14,914 over the six-month period…


July 9, 2018 - Inside the CFPB

More Clarity Needed in TRID 2.0, Compliance Experts Say

The preamble of the integrated mortgage disclosure rule creates confusion about whether certain charges qualify for a 10 percent tolerance, and compliance experts suggest that lenders wait to see if there’s further guidance from the CFPB. The CFPB released a rule a year ago finalizing amendments to the Real Estate Settlement Procedures Act and the Truth in Lending Act Integrated Disclosure Rule. The amended TRID rule took effect in October 2017, but the mandatory compliance date…


July 9, 2018 - IMFnews

Short Takes: Those Ginnie Warnings on VA IRRRLs Apparently Worked / The Trump GSE Plan, Going Nowhere? / NJ Lender Launches Call Center in SC / Churchill in a Hiring Mode / Walker & Dunlop Hires Capital Markets Executive

Although loan production is down this year, that isn’t stopping some lenders from moving forward with expansion plans.


July 9, 2018 - IMFnews

CFPB Deputy Director English Announces Resignation. Her Legal Challenge Ends

Last fall, English was named the CFPB’s deputy director by departing Director Richard Cordray...


July 9, 2018 - IMFnews

Agencies Leaning More on the ‘QM Patch’

The share of high-DTI loans has continued to go up this year…


July 6, 2018 - IMFnews

Short Takes: Making Sense of the BLS Mortgage Employment Numbers / Fewer Construction Workers Means… / Budget Scoring and the GSEs. Meaning? / Hey, Maybe Amazon Should buy Impac (CashCall)

So, what’s the big deal? Under FCRA, Fannie and Freddie would add $23.5 billion in revenue to Uncle Sam’s coffers for 2019...


July 6, 2018 - IMFnews

CFPB Set to Implement HMDA Relief Later This Summer

The relief comes from the Dodd-Frank reform act, which was signed into law in May...


July 6, 2018 - IMFnews

DBRS Tops in Rating Non-Agency MBS

Kroll Bond Rating Service moved up from fourth place in 2017 to start this year in second…


July 6, 2018 - IMFnews

LenderLive Pondering a Sale? Or Something Else?

In July 2017, the vendor named Rob Clements chairman and CEO and John Surface president and chief operating officer. Both came over from EverBank Financial…


July 5, 2018 - IMFnews

Short Takes: Megabank Bidding on VA IRRRLs / HUD Didn’t Fix the Mess / Blame the Dodd-Frank Reform Act / Applies to REMICs Only / JPM Remains the FHLB Advance King

Needless to say, the VA IRRRL issue is complicated...


July 5, 2018 - IMFnews

MBA: Mortgage Applications Post a Slight Decline

Brace yourself, new mortgage employment figures will be released Friday morning…


July 5, 2018 - IMFnews

Amid Talk of Industry Layoffs, United Wholesale is Hiring

According to figures compiled by Inside Mortgage Finance, UWM ranks ninth overall among all lenders, and is poised to move up in the rankings...


July 5, 2018 - IMFnews

Trump Plan Calls for Moving USDA Housing Programs to HUD

Rep. Kenneth Lucas, R-KY, worried that rural communities face challenges that are far different than those faced by typical FHA or VA homebuyers…


July 5, 2018 - IMFnews

Despite Higher Rates, ARMs Slow to Catch On

The top six ARM lenders are all commercial banks, led by Bank of America…


July 5, 2018 - IMFnews

Street Firms Inch Their Way Back into the Nonprime (Non-QM) Market

A handful of Street firms are now actively making repo lines in the sector…


July 3, 2018 - IMFnews

Short Takes: An MSR-Only Sale for Ditech? / Layoffs at The Money Source / Fannie and Freddie Trim Subprime Holdings / A Capital Raise for Redwood / New Rez Closes on Shellpoint Deal

TMS called it a “realignment,” explaining the cuts are part of a plan to “fuel fintech growth.”


July 3, 2018 - IMFnews

Despite Favorable Court Rulings, Questions Remain on Marketing Services Agreements

The RESPA statute and existing regulations still clearly prohibit payments for referrals…


July 3, 2018 - IMFnews

A Big Decline for Interest-Only Originations

Among all IO originators, First Republic Bank ranked first with $1.54 billion…


July 2, 2018 - IMFnews

Short Takes: Lending Tree Comes Back Down to Earth / If Mortgage Rates Hit 5 Percent… / WMIH and Nationstar Shareholders Approve / NJ Mortgage CEO and Founder Resigns / Executive Bolts Stewart for WFG

LendingTree founder and CEO Douglas Lebda took home total compensation of $59.6 million last year...


July 2, 2018 - IMFnews

Mortgage Insurers Waiting on FHFA and PMIERs 2.0

Keefe Bruyette & Woods believes new PMIER rules could see the light of day shortly…


July 2, 2018 - IMFnews

Rising Rates Take a Bite out of FHA Lending

Fairway Independent Mortgage ranked first among all FHA purchase lenders with $880.8 million in 1Q18...


July 2, 2018 - IMFnews

I’ve Just Seen the Future of Mortgage Banking and its Name is Amazon

Two years ago, loanDepot scuttled a much talked about initial public offering of stock...


July 2, 2018 - IMFnews

A Deal-Hungry Stearns to Acquire an Equity Stake in Certainty Home Loans

According to sources familiar with the matter, Stearns is looking at other acquisitions as well...


July 2, 2018 - IMFnews

Ten Years After the Housing Crisis, Wells Still No. 1 in Mortgages. However…

But the most telling sign of how the banking industry has lost its grip on home lending rests in the number of depositories that rank among the top 20…


June 29, 2018 - Inside FHA/VA Lending

MBA Backs Legislative Efforts to Reform False Claims Act, FIRREA

The mortgage banking industry is backing a legislative proposal that would limit the government’s use of the False Claims Act to pursue hefty damages against FHA lenders. In a recent letter to the bill’s co-sponsors, the Mortgage Bankers Association expressed its strong support for H.R. 5993, the Fixing Housing Access Act of 2018. The MBA noted that originating FHA-insured loans has become very risky in recent years largely due to the civil actions brought by the Department of Justice under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Fifty-four FCA and FIRREA cases against financial institutions have settled for billions of dollars between July 2011 and January 2018, according to data compiled by the Buckley Sandler law firm. Four cases are pending and one civil penalty award was reversed on appeal. Those lenders who were on the ...


Poll

With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

vote to see results