Trends & Profitability

Browse articles from all of our Newsletters related to Trends & Profitability.

August 23, 2017 - IMFnews

Wells Fargo Wins the Bid for Seneca Mortgage

Other bidders on the $53.6 billion MSR portfolio include JPMorgan Chase and New Residential…


August 23, 2017 - IMFnews

The Final Tally for 2Q17: FHA Lending Up, VA Production Down

Nonbank home originators continued to dominate the top five FHA rankings...


August 23, 2017 - IMFnews

Despite Coming Ban, Starwood REIT to Buy Non-QMs with FHLBank Help

Starwood didn’t disclose the volume of non-QMs it has acquired at this point.


August 22, 2017 - IMFnews

Morgan Stanley Declares 5.2 Percent Stake in PHH Corp.

PHH is in the throes of transforming from a business predicated on private-label originating and servicing to being mostly a subservicing vendor.


August 22, 2017 - IMFnews

Jumbo Lending Increased in 2Q17, but Volume Lagging Last Year’s Pace

Wells Fargo regained the title of the top non-agency jumbo lender in the second quarter, besting Chase…


August 21, 2017 - IMFnews

Millennials Have Major Homebuying Anxiety

Having enough money to make a downpayment was a concern of 63 percent of millennial respondents…


August 21, 2017 - IMFnews

Deephaven Mortgage Managing Director Brett Hively Departs; Former Quicken Executive His Replacement

Hively’s resume includes stints at Goldman Sachs (where Nichols also worked), New Century Mortgage Co., and Option One Mortgage.


August 21, 2017 - IMFnews

A New Tally: Nonconforming Originations Hit $7 Billion in 2Q17

Our ranking of the nonconforming sector is divided among lenders that specialize in the products and those where it accounts for a small slice of production.


August 18, 2017 - Inside FHA/VA Lending

No Ginnie Mae Summit in 2017, Event Moved to January 2018

Ginnie Mae will not have an annual summit this year but has rescheduled it for January 2018, according to Ginnie Mae’s new spokesperson. Michael Huff, senior advisor, congressional and stakeholder relations, said a new administration and staff departures have caused organizers to reconsider having the annual Ginnie Mae Summit this year, usually held in October. The Trump administration has yet to announce a nominee for the top job at Ginnie Mae since former president Ted Tozer left in January. David Kittle is reportedly a leading contender, but there has been no official announcement or confirmation. So far, Kittle has declined to comment. Kittle is a mortgage industry veteran who began as a loan officer and now heads his own company. He also was a top executive with the Mortgage Bankers Association and managed, among other things, the group’s political action committee. In addition, Kittle co-founded the ...


August 18, 2017 - Inside FHA/VA Lending

Private MI Trade Group Urges CFPB To Establish Single QM Rule for All

The private mortgage insurance industry has called for harmonized qualified-mortgage standards to discourage potential arbitrage that might adversely affect consumers. In a comment letter, the U.S. Mortgage Insurers urged the Consumer Financial Protection Bureau to assess whether the various QM standards established under the Dodd-Frank Act have created arbitrage opportunities to the detriment of consumers. The CFPB is about to begin a reevaluation of its ability-to-repay rule/QM rule. QM standards are different for Fannie Mae, Freddie Mac and the Federal Home Loan Banks than for FHA, VA and the U.S. Department of Agriculture. The USMI said analysis should focus on the different treatment of points and fees and maximum borrower debt-to-income ratio among the various QM standards. The CFPB can address the calculation of points and fees under its ATR/QM rule by ...


August 18, 2017 - Inside FHA/VA Lending

NYDFS Accuses Veterans United of Overcharging Vets on VA Loans

The Mortgage Research Center, which does business as Veterans United Home Loans and/or VA Mortgage Center, has agreed to pay $1.1 million to New York regulators to resolve allegations of overcharging veterans on loans guaranteed by the Department of Veterans Affairs. Veterans United was the second largest VA lender in the country in the second quarter, with a 5.4 percent share of the VA market, according to the Inside FHA/VA Lending database. The settlement agreement is part of a consent order entered into recently by Veterans United with the New York Department of Financial Services (NYDFS). The settlement stemmed from an investigation which found that the Columbia, MO-based company did not refund “surplus lender credits” on 322 VA loans originated from Jan. 1, 2011, to June 30, 2014. According to the consent order, borrowers obtained a credit from ...


August 18, 2017 - Inside FHA/VA Lending

Wells Fargo, PHH Reach Separate Settlements to Resolve FCA Suits

Wells Fargo and PHH Mortgage have reached separate settlements with the Department of Justice and three other federal agencies to resolve alleged violations of the False Claims Act. The DOJ, Department of Housing and Urban Development, Department of Veterans Affairs and the Federal Housing Finance Agency will rake in $182 million from the settlement of lawsuits involving FHA and VA loans, as well as loans sold to Fannie Mae and Freddie Mac. Wells Fargo denied the allegations in the whistleblower lawsuit but agreed to pay $108 million to resolve the claims. It admitted to no fault or liability. Filed in 2006 and unsealed in 2011, the lawsuit alleged that the bank overcharged veteran borrowers by masking ineligible fees in order to obtain VA guarantees on certain Interest Rate Reduction Refinancing Loans, or streamlined refi mortgages. At the same time, Wells allegedly falsely certified to the VA that it ...


August 18, 2017 - Inside FHA/VA Lending

Clarity Sought on HUD Preemption Of State Statutes of Limitation

Reverse mortgage lenders are asking FHA to clarify the applicability of state statutes of limitations on collections and foreclosures involving Home Equity Conversion Mortgage loans. In a comment letter to the Department of Housing and Urban Development, the National Reverse Mortgage Lenders Association sought clarification to avoid any potential risk to the department and reverse mortgage lenders. Since federal agencies are not subject to state statutes of limitations, the NRMLA asked the FHA to confirm that HECM loans assigned to HUD are not covered by state statutes of limitations on collections and foreclosure. The trade group also requested FHA to clarify whether HECM regulations and program guidelines preempt any such state law. “Requiring mortgagees to assign loans to HUD and make certifications that such loans are and will be ...


August 18, 2017 - Inside FHA/VA Lending

Industry Experts Favor Unified GSE, FHA/VA Servicing Policies

Simplifying and aligning the default servicing policies of the conventional conforming and the government-backed mortgage markets would better serve the mortgage industry and homeowners, according to industry experts. In a recent discussion on how regulatory burden and high servicing costs might impede lending, members of the Mortgage Servicing Collaborative agreed on the need for streamlined and harmonized federal, state and agency policies and rules on servicing. Increased regulatory requirements have caused mortgage-servicing costs to skyrocket in recent years, experts said. Even though the quality of servicing has improved, the new regulations are complex and costly, they noted. Multiple pressures placed upon servicers have suppressed mortgage lending, making it harder for borrowers with tainted credit to obtain a mortgage, according to the ...


August 18, 2017 - IMFnews

Industry Reps Use Congressional Recess to Gear Up for Fall Legislative Push

Meanwhile, the leaders of the Senate Banking, Housing and Urban Affairs Committee have introduced S. 1751, a six-year extension bill with relatively minor reforms, as far as the Realtors are concerned.


August 18, 2017 - IMFnews

Those Incredibly Shrinking GSE MBS Portfolios – a 5.3 Percent Decline in 2Q17

Today, Fannie and Freddie hold $13.50 billion of subprime and Alt A MBS. At the end of 2005, they had a staggering $258.67 billion in such assets.


August 17, 2017 - IMFnews

Lenders Starting to Use Webcams to Close Loans

The company is also working with Stewart Title...


August 17, 2017 - IMFnews

Walter’s Stock Crushed Yet Again on New Disclosure; Nonbank Plans to Remedy NYSE Delisting

Walter has a market capitalization (stock price multiplied by number of shares) of just $11.8 million…


August 17, 2017 - IMFnews

Citadel Offering One-Month Bank Statement Program with Minimum Credit Score of 700

In its new bank-statement program, Citadel will make mortgages of up to $3 million…


August 17, 2017 - IMFnews

Government-Insured Mortgages the Biggest Gainer in 2Q17

Roughly 71.0 percent of second-quarter primary-market originations of first-lien mortgages were purchase loans, the highest reading in years…


August 16, 2017 - IMFnews

For Sale by MountainView: $94 Million of NPLs/RPLs and More

Over the past three years MountainView has sold $3.8 billion of whole loans as measured by unpaid principal balance…


August 16, 2017 - IMFnews

Fannie, Freddie Earnings Could Hit $10 Billion in 3Q17 Thanks to RBS Settlement

If the $10.4 billion figure proves accurate it will result in another hefty dividend payment by Fannie and Freddie to the holder of its senior preferred stock: the U.S. Treasury.


August 16, 2017 - IMFnews

Mortgage Hiring Spree Tapering Off?

Another digital lender that’s hiring is NewFi Lending of Emeryville, CA…


August 16, 2017 - IMFnews

Federal Appeals Court Rules Mortgage Underwriters are Entitled to OT Pay

Under this test, an employer must show that the employee is paid at least $455 per week…


August 15, 2017 - IMFnews

As Financial Crisis Fades, are Mortgage Servicers Poised for a New Era?

Servicing costs have risen dramatically this decade, but maybe there’s light at the end of the tunnel…


August 15, 2017 - IMFnews

2Q17 a Rocky Road for (Certain) Publicly Traded Nonbanks

Most of the companies are in decent shape, but the group is weighed down by two big albatrosses – Ocwen Financial and Walter Investment…


August 15, 2017 - IMFnews

RE Crisis Post-Mortem: Home-Price Depreciation a Bigger Driver of Defaults than Unemployment

S&P focused on mortgages originated between the second half of 2005 and the first half of 2008.


August 14, 2017 - IMFnews

California Bank Cuts Mortgage Staff as Refis Decline

Provident noted that overcapacity is putting pressure on origination margins…


August 11, 2017 - Inside Mortgage Trends

USMI Seeks One QM Rule for All

The private mortgage insurance industry is calling for a level playing field between the government-sponsored enterprises and FHA and VA as the Consumer Financial Protection Bureau begins its assessment of the ability-to-repay rule. In comments to the CFPB, U.S. Mortgage Insurers urged the bureau to determine whether potential arbitrage in QM standards for Fannie Mae and Freddie Mac and those for FHA and VA have had any negative effect on consumers ...


August 11, 2017 - Inside Mortgage Trends

Borrower Satisfaction Key in Servicing Transfers

Companies looking to acquire servicing via bulk transfers need to be mindful of how the transaction will impact borrowers, according to analysts at Strategic Mortgage Finance Group. Officials at Stratmor warned that a poorly executed transfer can significantly reduce servicing value as dissatisfied borrowers are unlikely to refinance with the lender/servicer. Michael Grad, a senior partner at the firm, said a servicing operation that maintains a strong borrower relationship and ...


August 11, 2017 - Inside Mortgage Trends

Bank Lays Off Mortgage Staff as Refis Decline

Provident Savings Bank, headquartered in California, recently laid off staff in its mortgage unit due to a decline in refinance volume. “During the past six months, we’ve reduced capacity to more closely align to the current opportunities in the market, which reflect an uptick in purchase-money activity, but a significant decline in refinance activity,” said Craig Blunden, chairman and CEO of Provident Financial Holdings, the holding company of the bank. He said the lender reduced its ...


August 11, 2017 - Inside Mortgage Trends

Low-Downpayment Lending Continues to Expand

Low-downpayment lending is the highest it’s been in almost seven years as the purchase market keeps growing, according to new data from Black Knight Financial Services. “Over the past 12 months, approximately 1.5 million borrowers have purchased homes using less than 10-percent downpayments,” according to Ben Graboske, executive vice president of Black Knight Data & Analytics. “The increase is primarily a function of the overall growth in purchase lending ...


August 11, 2017 - Inside Mortgage Trends

Mortgage Hiring Spree Tapering Off

The third quarter of any given year is usually among the strongest in terms of residential loan originations, but new employment figures from the Bureau of Labor Statistics suggest that many mortgage lenders are being careful about hiring these days. Loan brokers on the other hand appear to a bit more liberal. But interviews conducted by Inside Mortgage Trends over the past week suggest that plenty of nonbanks are continuing to search for help, especially firms that ...


August 11, 2017 - Inside Mortgage Trends

GSE Lenders Reach for Refi Business in 2Q17

Mortgage lenders that sell loans to Fannie Mae and Freddie Mac opened the credit box slightly for refinance borrowers during the second quarter, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. Some 24.8 percent of refinance loans securitized by the two government-sponsored enterprises during the second quarter had credit scores below 700. That was up from 22.6 percent in the previous period and just ... [Includes two data charts]


August 11, 2017 - Inside Mortgage Trends

2Q17 a Rocky Road for Publicly Traded Nonbanks; Several Firms on the Ropes

The second quarter of 2017 was not easy for publicly held nonbank mortgage lenders and servicers, but the beleaguered sector fared better than it did a year ago. A new Inside Mortgage Trends analysis of second-quarter earnings reports found the eight companies in the roundup managed to generate just $24.37 million in mortgage-banking income. That was down 80.1 percent from the group’s first-quarter earnings. One public nonbank, Stonegate Mortgage ... [Includes one data chart]


August 11, 2017 - IMFnews

Forget the Millennials. Gen Xers Still Make Up Bulk of Borrowers, Says New Report

Gen Xers on average favor making down payments of 20 percent, while Millennials tend to make down payments of 3 percent or less...


August 11, 2017 - IMFnews

Low Downpayment Lending is Expanding, Says BKFS

Over the past 12 months, 1.5 million borrowers have purchased a home using down payments below 10 percent…


August 11, 2017 - IMFnews

Mortgage REITs Boost MBS Investments During 2Q17, Show Healthy Appetite for Risk-Transfer Deals

Annaly Capital Management remained the largest MBS investor in the group, accounting for 32.2 percent of the market…


August 10, 2017 - IMFnews

Short Takes: Walter Exits Reverse Lending, May Sell the Business / Redwood Queues Up Another Jumbo Deal / Dark Money in Cordray Effort? / A Small Gain for Applications / New Hires for Churchill

It’s safe to say that CFPB Director Richard Cordray has been one of the most controversial financial regulators to work in Washington, D.C. for quite some time...


August 10, 2017 - IMFnews

Walter Posts $94 Million Loss for 2Q17, Mentions Chapter 11 Bankruptcy as a Possibility

Walter notes: “We have already achieved cost reductions in a number of areas, but there can be no assurance that we will be able to reduce costs so as to enable the servicing business to return to profitability in the near term or at all.”


August 10, 2017 - IMFnews

Private MI Industry on a Roll: Market Share Surging, Profits Still Climbing

During the second quarter, VA endorsements of streamlined refi loans fell a whopping 52.9 percent…


August 10, 2017 - IMFnews

With Refi Activity Declining, Some Nonbanks Turn to Non-QMs, Including Nationstar

Non-QMs carry more regulatory risk than conventional loans, but an increasing number of shops are willing to take on the product as refis slump…


August 9, 2017 - IMFnews

Mortgage Hiring Flat but Some Firms Continue to Add Heads

Citadel Servicing Corp., Irvine, CA, is also looking for a correspondent sales rep for the East Coast...


August 9, 2017 - IMFnews

Investors Love Mortgage REITs, Nonbanks Not So Much; Another IPO Try for loanDepot?

Industry consultants contend that loanDepot – the nation’s 10th largest overall originator – still hopes to go public one of these days…


August 9, 2017 - IMFnews

In 2Q17, Correspondent Channel Held Up in a Shifting FHA/VA Market

Brokers saw the biggest increase in FHA business, with volume up 14.5 percent…


August 9, 2017 - IMFnews

Impac Shifts Production Away from GSE Mortgages to Non-QMs and Government-Insured Loans

In trading Wednesday, Impac’s share price was down almost 6 percent…


August 9, 2017 - IMFnews

The Red Ink Keeps Piling Up at PHH; Revenue Plunges 43 Percent in 2Q

At June 30, PHH had commitments to sell $52.3 billion of mortgage servicing rights.


August 8, 2017 - IMFnews

Movement Mortgage CEO Rebrands His New Bank as, You Guessed It, Movement Bank

According to Casey Crawford the recapitalized depository will focus on “loving and serving people.”


August 8, 2017 - IMFnews

PHH Enters Into Settlements with DOJ, FHFA to Settle Underwriting Issues Tied to Legacy Loans

PHH said it settled the cases without admitting liability “to avoid the distraction and expense of potential litigation.”


August 7, 2017 - IMFnews

Trader Joe’s a Beacon for Homebuyers?

Homes located near a Trader Joe’s location had an average 5-year appreciation of 67 percent…


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