Mortgage Originators

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

December 18, 2017 - IMFnews

Short Takes: What’s Up with Walter? / loanDepot and Going Public? / Capping the MID at $750K / Victor Ciardelli, Still in Charge at Guaranteed Rate / PrimeLending Promotes Thompson

Eventually, loanDepot's investors will want to cash out...


December 18, 2017 - IMFnews

Ginnie’s Effort to Rein In Rapid Refis on VA Loans: More to Come, for Sure

Ginnie’s Dec. 7 memo to issuers outlines the new pooling changes, along with additional measures…


December 18, 2017 - IMFnews

Fannie and Freddie Ramp Up ‘Duty to Serve’ Programs; Renovation Mortgage Products to Come

The statute requires the GSEs to serve three specific underserved markets: manufactured housing, affordable housing preservation, and rural housing by increasing secondary market liquidity...


December 15, 2017 - Inside The GSEs

FTHB Participation Grows in GSE Low-Downpayment Programs

The GSEs’ low downpayment programs are gaining some traction among first-time homebuyers. According to an analysis by Inside The GSEs, 97 percent loan-to-value mortgages now represent close to 15 percent of first-time homebuyer mortgages sold to the GSEs. The high LTV programs have grown gradually, but steadily, since they were introduced. But they were slow to catch on. By the end of 2015, the high LTV programs represented 5 percent of the FTHB market, which grew to nearly 10 percent at the end of last year. They represented approximately 14 percent of first-timer mortgages in the third quarter of 2017. The top three banks originating these low downpayment loans are...


December 15, 2017 - Inside The GSEs

FHFA Keeps Close Eye on Prepayment Speed Divergence

As the Federal Housing Finance Agency works to prepare the industry for the single security and common securitization platform, officials are keeping a close eye on consistency in prepayment speeds between Fannie Mae and Freddie Mac. The single security and CSP are on target for implementation in 2019, according to a new FHFA progress update released in December. In that report, the FHFA described in more detail the processes it has in place to minimize variance in prepayment speeds between Fannie and Freddie mortgage-backed securities that have the same coupon, maturity and issuance cohort.


December 15, 2017 - Inside The GSEs

Freddie Staked Bigger Claim To GSE Business in November

Freddie Mac continued to expand its share of the GSE single-family business in November, following a strong showing the previous month, according to a new Inside The GSEs analysis of mortgage-backed securities data. The two GSEs guaranteed $79.09 billion in new single-family MBS last month, an unexpected 4.5 percent increase from October’s production. Freddie posted the biggest increase, 7.4 percent for the month, while Fannie issuance in November was up a more modest 2.0 percent. That pushed Freddie’s share of the GSE single-family MBS business to 47.0 percent, up from 45.7 percent in October, matching the company’s biggest market share since July 2015. Through the first nine months of 2017, Freddie managed to garner...


December 15, 2017 - Inside Mortgage Trends

Industry Groups Lobby on Capital Gains Exclusion

A coalition of industry groups has urged the Senate Committee on Finance to retain the current capital gain exclusion on the sale of a principal residence, warning that such a provision in the Republican tax reform plan would adversely affect young families and those relocating to new jobs. Specifically, the proposal in the House and Senate versions of the tax bill would retain the $500,000 capital gain exclusion ($250,000 for unmarried taxpayers) but lengthen ownership and use requirements ...


December 15, 2017 - Inside Mortgage Trends

Analysts Predict Flat Mortgage Originations in 2018

Mortgage origination volumes are expected to stay flat year-over-year in 2018 at $1.65 trillion, as modestly rising purchase-mortgage volume is partially offset by declining refinances. The one bright spot is the mortgage insurance sector, according to analysts’ outlook in 2018. Sluggish mortgage activity suggests modest revenue growth in the sector with one exception – mortgage insurance, according to a Keefe, Bruyette & Woods analysis. KBW expects its “outperform” ratings for ...


December 15, 2017 - Inside Mortgage Trends

Price-to-Income Ratio Seen as Good Risk Gauge

Mortgages with high home price-to-income ratios tend to perform worse than mortgages with lower PTI ratios, according to economists at the Federal Reserve. The analysts suggest that PTI ratios are a helpful tool for gauging mortgage risk by tracking housing affordability. “Banks that have greater exposure of mortgages to high PTI regions have higher mortgage delinquency and charge-off rates and significantly higher probabilities of failure, even after controlling for ...


December 15, 2017 - Inside Mortgage Trends

‘Gig Economy’ Challenges Homeownership Rate

Drivers for ride-sharing companies and other participants in the so-called gig economy largely work the jobs to earn extra money. But even with the supplemental earnings, many in the gig economy don’t expect to purchase a home any time soon, according to a survey by Fannie Mae. The lack of demand for mortgages from workers in the gig economy is significant because 16 percent of adults in the U.S. work in the sector, including ride sharing, food delivery, handyman services ...


December 15, 2017 - IMFnews

PE Firm Thomas H. Lee Buys a Stake in Guaranteed Rate, but Ciardelli Still in Control

The spokesperson noted that Guaranteed Rate founder and CEO Victor Ciardelli “is still in control.”


December 15, 2017 - IMFnews

What We’re Hearing: Bitcoin Comes to the Rescue of Homebuyers / Not There Yet / Would the White House Dare Fire Mel Watt? / Probably Not? / Shrinking the GSE Role / Judging the Profitability of MBS Guarantees

Of course, the Trump administration has a history of shooting first and asking questions later…


December 15, 2017 - IMFnews

Impac Hires loanDepot Executive Furey to Head Retail Direct

Of late, Impac’s share price has been trading at $11.00 a unit, just a tick above its 52-week low.


December 15, 2017 - IMFnews

Did the GSEs Play a Role in Slowing Non-Agency SFR Deals?

Moody’s said GSE participation will continue to erode the sector’s reliance on commercial MBS as a source of financing…


December 15, 2017 - IMFnews

Continued Growth for Agency MBS in 3Q17

The fastest-growing segment is the Ginnie Mae market…


December 14, 2017 - IMFnews

MBA Chief Dave Stevens: The GSE Capital Buffer is a Distraction

The CHLA repeated its plea that FHFA Director Mel Watt withhold GSE dividend payments to Treasury and allow Fannie and Freddie to build capital…


December 14, 2017 - Inside Mortgage Finance

Lenders Face Uncertainty on Whether Underwriters are Eligible for Overtime Pay After SCOTUS Ducks the Issue

The Supreme Court of the United States recently refused to take up a case that would have ad-dressed a split in the lower courts regarding mortgage underwriters and overtime. With conflicting cir-cuit court opinions on the matter, lenders face regulatory uncertainty about whether underwriters are entitled to overtime.


December 14, 2017 - Inside Mortgage Finance

Home-Equity Lending Declined Slightly in 3Q17, Credit Unions Still Gung-Ho About the Market

The amount of home-equity debt outstanding continued its years-long slide during the third quar-ter, and many top lenders reported slowing production of new loans, according to a new ranking and analysis by Inside Mortgage Finance.


December 14, 2017 - IMFnews

REITs Buying Home Lenders – A Trend in the Making?

The acquisition, once consummated, will put New Residential in the business of originating loans directly to consumers. It also could have CFPB implications…


December 14, 2017 - IMFnews

Short Takes: Keeping Tabs on GSE Dividends / The GOP Tax Plan and DTAs / Good News for ‘Conforming’ Jumbos? / LendingTree Getting Frothy? / First Republic Bank Stands Out in Second Liens

The share price of online loan broker LendingTree is looking a bit pricey these days at $337.80 a unit...


December 14, 2017 - IMFnews

Another Industry Group Calls for Delay in New HMDA Requirements

Certain originators and their vendors have expressed the need for more time to test systems and accurately implement the proposed changes…


December 14, 2017 - IMFnews

Stop the Presses: A GSE Bill Passes the House Financial Services Committee but…

The panel approved the bill on a partisan vote of 33 to 27. It was one of 13 bills advanced by the panel…


December 14, 2017 - IMFnews

Home-Equity Lending Declined in 3Q17 but Not by Much

Banks and thrifts continued to retreat from the home-equity business in 3Q17 while credit unions pressed forward…


December 13, 2017 - IMFnews

Short Takes: GSE Dividend Payments: All Systems Go? / Cutting GSE Shareholders out of the Equation? / Wintrust Buying Mortgage Assets from VA Lender / UWM and MC Strike Deal / Chase Exec Bolts for Hamilton

In a new blog posting, Investors Unite asks the basic question: “Are Fannie’s and Freddie’s foes driving GSE reform?”


December 13, 2017 - IMFnews

Nonprime Lender Citadel Hopes to Hire 150 Over the Coming 12 Months

Citadel CEO Dan Perl: “We’re on a hiring spree.”


December 13, 2017 - IMFnews

Looks Like the MID Cap will be $750K as Conference Committee Wraps up Work on GOP Tax Reform

The way things stand today, the tax bill could be on track for final approval as soon as next week.


December 12, 2017 - IMFnews

Jumbo Delinquency Rate Increased in 3Q17, but in Line with Overall Market

Late-payment rates rose due to a number of factors…


December 12, 2017 - IMFnews

Nonprime Lending Competition Could Heat up in 2018

It appears that Angel Oak, Caliber and Citadel Servicing Corp. might have more company in the nonprime arena come next year…


December 12, 2017 - IMFnews

REITs and Nonprime Lenders Look to Strike ‘Working Relationships’

Mike Fierman, managing partner and co-CEO of the Angel Oak Companies: “I get calls every day” from investment funds.


December 12, 2017 - IMFnews

JPM’s New Non-Agency MBS Chock Full of ‘Agency Eligible’ Loans

The conforming mortgages in the deal were largely originated by correspondent lenders…


December 12, 2017 - IMFnews

Senate Vote on FHA Nominee Could Come Before Yearend

If Montgomery garners final approval, HUD Secretary Ben Carson will begin tackling key issues, including finalizing new condominium rules, dealing with reverse mortgage losses and more…


December 11, 2017 - IMFnews

Short Takes: And Now for a Word About Bitcoin / Can Trump Clear the Air? / Consultant Wonders about Endorsements / MIAC Selling NPLs, RPLs / Farmer Mac CEO Fired with No Severance

One of these days an answer will arrive, but until a mortgage company is sold for Bitcoins, we’ll stay on the sidelines…


December 11, 2017 - IMFnews

The Industry Shows Concern (Once Again) about GSE Technology and Potential Abuses

MBA: Fannie and Freddie should only undertake those activities that support secondary market liquidity…


December 11, 2017 - IMFnews

It’s that Time of the Year: Mortgage Layoffs

Still, large cutbacks have not been the norm, at least not yet…


December 11, 2017 - IMFnews

Surprise: The Subprime Delinquency Rate Jumps in 3Q17

The dollar volume of outstanding subprime mortgages continues to decline…


December 11, 2017 - IMFnews

VA Originations Increased by Almost 12 Percent in 3Q17; A Big Gain for Navy Fed

USAA reported a 17.0 percent sequential drop in VA lending while Navy Federal boosted production by an impressive 51.1 percent.


December 8, 2017 - Inside FHA/VA Lending

Rural Purchase Loans Up, Denial Rates High for Rural Minorities

Rural home purchase lending rose for the fifth straight year in 2016 although volume remains below pre-recession levels, according to new research by the Housing Assistance Council based on Home Mortgage Disclosure Act data. HAC, a nonprofit organization that supports and tracks affordable housing efforts in rural areas, estimated that 55 percent of the 1.05 million rural home loans originated last year were first-lien purchase mortgages. The increase was substantial compared to 2012 and 2013, when two-thirds of rural originations involved refinance, the group noted. The U.S. Department of Agriculture guaranteed 9 to 12 percent of all rural home purchase loans originated in each of the last three years, the study found. Of the 16.3 million HMDA submissions by covered institutions, an estimated 2.0 million involved funding for homes in rural or small-town communities, researchers found. While mortgage activity ...


December 8, 2017 - Inside FHA/VA Lending

USDA Loan Guarantees Down Slightly As of End of October

The U.S. Department of Agriculture has provided guarantees to 10,366 rural mortgage loans under its Section 502 Single Family Housing Guarantee program in 2017. As of the end of October, USDA provided $1.5 billion in rural home loan guarantees, down from $1.6 billion (11,678 loans) at the same time last year. In addition, USDA guaranteed more than $55.1 million of loans made under the Section 502 Direct program, which offers mortgages for low- and very low-income homebuyers in rural areas. Borrowers with very low-income account for 36.2 percent of loans under the program. Furthermore, the USDA guaranteed 66 repair-and-rehabilitation loans totaling $385,836, up from this time last year. No grants were obligated in October. For its multifamily housing program, the USDA obligated 188 rural housing vouchers totaling $762,506 as of the end of October. No vouchers were obligated in the ...


December 8, 2017 - Inside FHA/VA Lending

VA Originations Swing Back Up in 3Q17, Purchase Loans Fuel Surge

VA posted an 11.6 percent increase in originations in the third quarter, reversing a downward slide that began in early 2017. VA lenders ended the period with $45.5 billion in new originations, up from $40.8 billion in the previous quarter. The nine-month VA volume totaled $129.1 billion with purchase mortgages providing a strong boost. Streamlined refinancing, or Interest Rate Reduction Refinance Loans, accounted for 16.8 percent of VA loans originated and securitized during the nine-month period. The top five VA lenders in sequential order – USAA, Veterans United Home Loans, Quicken Loans, Navy Federal Credit Union and Freedom Mortgage – ended the third quarter with a combined $11.05 billion in originations and a 24.7 percent share of the market. Top-ranked USAA reported a 17.0 percent drop in VA lending in the third quarter from the previous quarter. Over the nine-month period, it racked up ... [charts]


December 8, 2017 - Inside FHA/VA Lending

FHA to Cease Insuring Loans on Properties with PACE Assessments

FHA this week announced it will stop insuring new mortgages on properties encumbered with a Property Assessed Clean Energy (PACE) lien as part of a larger effort to protect borrowers and the FHA mortgage insurance fund. “FHA can no longer tolerate putting taxpayers at risk by allowing [PACE] obligations to be placed ahead of the mortgage itself in the event of a default,” said Housing and Urban Development Secretary Ben Carson. Carson said PACE assessments are potentially dangerous for the Mutual Mortgage Insurance Fund and could adversely affect a borrower’s ability to repay or refinance their mortgage or sell their home. FHA also expressed concern about PACE obligations having seniority over pre-existing FHA loans that are already outstanding. The post-endorsement placement of PACE assessments on an FHA-insured mortgage creates a lack of transparency, making it difficult for ...


December 8, 2017 - Inside FHA/VA Lending

Rising Home Values Lead to Higher Loan Limits for Forwards, HECMs

FHA this week announced a 6.8 percent increase in loan limits nationwide for 2018 with 26 counties seeing increases above the national rate. In high-cost areas, the loan-limit ceiling will rise to $679,650 from $636,150 in 2017, while the floor will increase to $294,515 from $275,665. In addition, the national mortgage limit for Home Equity Conversion Mortgages (HECMs) or reverse mortgages will rise to $679,650 from $636,150. FHA regulations do not allow HECM loan limits to vary by metropolitan statistical area or county. Instead, the single limit applies to all mortgages regardless of where the property is located, the agency explained. In between the floor and the ceiling is a broad band of loan limits for single-family forward mortgage loans set at 115 percent of median house prices. The forward limits vary according to MSA and county. The changes in the loan limits are the result of ... [ Chart ]


December 8, 2017 - Inside FHA/VA Lending

Ginnie Mae Expands Seasoning Requirement for VA Refi Loans

Ginnie Mae has issued expanded guidelines to protect veterans and investors from harmful loan churning and rapid prepayments in mortgage-backed securities. The changes, along with additional measures under consideration by a joint Ginnie Mae/VA refinance task force, are aimed at ensuring continued strength and liquidity of the Ginnie Mae MBS program, said Michael Bright, the agency’s acting president. The latest guidelines expand on an initial measure Ginnie implemented requiring six-months of seasoning of VA loans before they can be refinanced and delivered into Ginnie MBS pools. However, some lenders have found ways around the measure and have continued their questionable lending practices, said Bright during recent testimony before a House Financial Services subcommittee. Churning is both illegal and unethical because it preys on unsuspecting borrowers, who are pressured by ...


December 8, 2017 - IMFnews

What We’re Hearing: President Trump: Wells Fargo Will be Fined / President Trump? / Time to Exempt Fannie and Freddie from the GOP Tax Overhaul? / Who Lost the GSEs? / Hensarling’s Change of Heart, Why? / CMLA Names Former Freddie Official Acting Director

Now comes the big question: Why is the president of the United States weighing in on a bank regulatory issue? Then again, it’s Donald Trump. Mortgage ramifications? Stay tuned…


December 8, 2017 - IMFnews

FHA to Halt Insuring Mortgages on Homes with PACE Assessments

The PACE decision follows last month’s release of the annual audit of the Mutual Mortgage Insurance Fund, which showed a decline in economic value…


December 8, 2017 - IMFnews

FHA Unveils New Loan Limits for 2018

FHA regulations currently do not allow HECM loan limits to vary by metropolitan statistical area or county…


December 8, 2017 - Inside MBS & ABS

Hensarling Outlines Keys to Housing-Finance Reform As Momentum Builds, a Bright Future for Ginnie?

It appears that Congressional reform of the housing-finance system – and final resolution of Fan-nie Mae and Freddie Mac – is back on track with a key piece of good news for MBS investors: an ex-plicit federal guarantee on conventional product looks likely.


December 8, 2017 - IMFnews

Hensarling is Ready to Deal on GSE Reform, but Will it Happen?

Rep. Hensarling: “This means the government needs to be in the last-loss position, with multiple layers of private capital, as diversified as possible, stacked up before it.”


December 8, 2017 - IMFnews

Guaranteed Rate Sues Former Executive Over ‘Talent Raid’

But former Guaranteed Rate executive Joseph Caltabiano denies the allegations…


December 8, 2017 - IMFnews

Agency MBS Issuance Up Slightly in November. Another Big Month for Freddie

It was Freddie Mac’s second-largest month of the year...


December 7, 2017 - Inside Mortgage Finance

Guaranteed Rate Initiates Lawsuit Against Former Mortgage Lending SVP for Talent Raid

Guaranteed Rate is accusing a former top executive of raiding talent at the Chicago-based firm by planning a mass exodus of key employees for a newly launched competitor across town. But Joseph Caltabiano, the company’s former senior vice president of mortgage lending, denies the allegations.


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.

33%

No. It’s still difficult compliance/regulatory-wise.

20%

Maybe. It’s under consideration.

33%

Not now. But things could change as 2018 progresses.

13%