Trends & Profitability

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

September 20, 2017 - IMFnews

United Wholesale Keeps Funding Startup Grants for Brokers, but Would Like Some Company

UWM CEO Mat Ishbia noted that his company does not have a say on which applicants ultimately get picked by NAMB, though the lender does have one representative on the review panel.


September 20, 2017 - IMFnews

Liquidity in the MBS and ABS Markets: As Strong as It’s Ever Been…

“Liquidity is strong across the spectrum and probably the best we’ve ever seen for structured products,” said Scott Levy, a senior managing director at Guggenheim Securities…


September 20, 2017 - IMFnews

Walter Gets $300 Million Increase in Financing from Barclays; Stock Spikes

News of the expanded repo line sent Walter's share price soaring...


September 20, 2017 - IMFnews

Depositories Continue to Place First Liens in Portfolio

Trends in portfolio management were somewhat mixed among the top 10 holders of first-lien mortgages…


September 19, 2017 - IMFnews

Caliber Ramps Up Non-QM Lending Big Time

Caliber plans to originate at least $1 billion of non-QM residential loans this year…


September 19, 2017 - IMFnews

Mortgage M&A Chatter Continues. Medium-Sized Shops Are Targets

Rick Roque, who runs Menlo, an M&A advisory firm, said he knows several owners who are contemplating a sale…


September 18, 2017 - IMFnews

Nonbank Lenda Gets Backing of $5.25 Million

Lenda originally began as a refinance provider in 2013…


September 15, 2017 - Inside FHA/VA Lending

FHA Announces Changes to HECM Counseling Certificates

The FHA will provide lenders that originate Home Equity Conversion Mortgage loans the option to view and print unsigned HECM counseling certificates in FHA Connection starting Sept. 18, 2017. While the lender may still take the initial loan application, the lender can only begin to process it once the counseling is complete, as evidenced by a completed HECM counseling certificate that contains signatures of both the counselor and borrower. Lenders that chose to use this option will be required to establish procedures to obtain and document authorization from the HECM borrower to access the counseling certificate in FHA Connection. In addition, lenders must certify that a borrower authorization to view the counseling certificate was obtained. Lenders must follow the guidance on processing HECM loans contained in the HUD Handbook, the FHA said. To access HECM counseling certificates, lenders will ...


September 15, 2017 - Inside FHA/VA Lending

Legal Experts Suggest Five ‘Fixes’ To Avoid Unfounded FCA Claims

Compliance attorneys are calling for legislative changes to prevent possible misuse of the False Claims Act that could result in settlements that could be financially devastating to mortgage lenders. Concerns about possible government misuse of FCA provisions are evident in the statutory qualifiers that are already embedded in the existing statute, according to a recent analysis by Krista Cooley and Laurence Platt, attorneys and partners in the Washington, DC, office of Mayer Brown. The qualifiers are in the main provision of the FCA that the Department of Justice has used against mortgage lenders and servicers, the attorneys said. The provision imposes liability on any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or ...


September 15, 2017 - Inside FHA/VA Lending

VA Finalizes Rule for Establishing Fees, Charges for Vendee Financing

The Department of Veterans Affairs has announced a final rule that will allow it to establish reasonable fees to cover the costs of originating and servicing a VA-backed vendee loan. A vendee loan enables a borrower to purchase a VA real estate-owned property. Vendee financing is not a veteran benefit but is available to any purchaser, including veterans and servicemembers. In addition, vendee financing is available for non-owner and owner-occupied residential properties. An owner-occupied purchase can be financed with as little as zero percent downpayment while a non-owner-occupied purchase requires a minimum 5 percent downpayment. In addition, for non-owner-occupied purchases, investors may use 75 percent of anticipated rent, based on an appraiser’s estimate, to offset the subject property monthly payment. Furthermore, investors must have experience in ...


September 15, 2017 - Inside FHA/VA Lending

MBA Offers Measures to Deal With VA Appraisal Issues, Delays

The Mortgage Bankers Association has recommended steps to address the VA appraiser shortage and increased appraisal turn times. The industry group made its recommendations in a recent letter to Jeffrey London, executive director of the Department of Veterans Affairs’ Loan Guaranty Service, based on a roundtable discussion between MBA and other industry stakeholders in March. Stakeholders expressed their concern for the lack of VA appraisers and longer waiting periods for appraisal reports. Appraiser shortage is an ongoing problem for the VA, and has resulted in delayed loan closings, particularly in highly rural areas. Some states, like Oregon, have very few appraisers, the MBA pointed out. “This delay may force veterans to choose other loan programs to meet certain deadlines or face other adverse outcomes,” the MBA letter warned. On the other hand, the ...


September 15, 2017 - Inside FHA/VA Lending

Ginnie Mae to Take Action Against Illicit Refinancing of VA Mortgages

Rapid, aggressive refinancing of VA loans has made a comeback with some issuers using strategies to mask the practice and avoid possible penalties, including expulsion from the Ginnie Mae program, according to a top agency official. Responding to concerns raised by Sen. Elizabeth Warren, D-MA, Michael Bright, acting Ginnie Mae president and chief operations officer, said a joint Ginnie Mae/VA lender-abuse task force is analyzing monthly data and developing additional policy measures to deal with the problem. Bright confirmed the resurgence of inappropriate streamline refinancing in Ginnie securitization pools in recent weeks and has promised to crack down on the questionable practice. The problem surfaced last year when Ginnie Mae noticed unusually fast prepayment speeds in its mortgage-backed securities, particularly MBS backed by VA loans. Ginnie found that certain lenders and ...


September 15, 2017 - IMFnews

Interest in Mortgage Tech Heats Up

Blend announced a stunner – it had raised $100 million in “Series D” funding…


September 14, 2017 - IMFnews

Another Bank May Enter the Jumbo MBS Market, Signaling a Potential Shift from Portfolio Retention

“We’ve gotten wind that we could see at least one other large money center bank enter the securitization markets,” said Christopher Abate of Redwood Trust…


September 14, 2017 - IMFnews

Redwood Sourcing ‘Expanded Prime’ Jumbos from Hundreds of Correspondents

Redwood Trust has approved 185 originators to sell Choice loans directly…


September 13, 2017 - IMFnews

Short Takes: At SoFi, CEO Cagney is Out. As for the IPO… / Stock Options as an Enticement / Patenaude Nomination Could Get a Vote / Flawless TRID Implementation? / Arbolida to Manage LA Branch for Finance of America

It’s possible that the nomination of Pam Patenaude to be the number-two at HUD could get a floor vote this week...


September 13, 2017 - IMFnews

When Loan Demand is Strong, Consumers Get Bad Pricing?

The researchers tracked lender rate sheets from 2008 through 2014…


September 12, 2017 - IMFnews

No Experience Required: Guaranteed Rate’s Program Will Train 100 Workers in CA

Liftoff promises that participants will get instruction on sales itinerary and be prepared for a loan licensing exam.


September 12, 2017 - IMFnews

KBW on PHH: More Value if the Servicer Liquidates ‘Relatively Quickly’

KBW noted: “We think there likely will be more value if the company is able to liquidate relatively quickly…”


September 11, 2017 - IMFnews

CMG Financial Expects to Fund $13 Billion This Year

George is presently the vice chairman of the Mortgage Bankers Association for the 2017 membership year.


September 11, 2017 - IMFnews

Large Banks Still Backing Away From Mortgage Servicing

On a combined basis, the three largest bank servicers reported a $45.06 billion reduction in their servicing for others.


September 8, 2017 - Inside Mortgage Trends

Production Income Up, Servicing Down in 2Q17

Publicly traded companies generally reported improved earnings on the production side of their mortgage banking activities during the second quarter of 2017 but slumping income from servicing. A group of 12 lenders that includes most of the top players in the industry reported a combined $1.16 billion in production-related income during the second quarter, up 6.9 percent from the first three months of the year. Combined origination volume was up ... [Includes one data chart]


September 8, 2017 - Inside Mortgage Trends

Demographics Promise Growth for Private MIs

Changing demographics will be the private mortgage insurance industry’s most powerful growth engine over the next 20 years, predicts an industry report published by the Urban Institute’s Housing Finance Policy Center. The new report cited U.S. census data showing a 10 percent increase in the share of minority households in U.S. homeownership over the last two decades. It forecasts the share will increase to 38 percent by 2030. Demographic shifts, growth of minority households ...


September 8, 2017 - Inside Mortgage Trends

Lenders Focus on Improving Borrower Experience

The latest mortgage lender sentiment survey from Fannie Mae finds that industry leaders are paying increasing attention to enhancing the borrower experience, thanks to competitive market pressures. To what degree they can actually pull that off remains to be seen. Doug Duncan, senior vice president and chief economist for the government-sponsored enterprise, noted in an online post that the company’s previous survey found that senior mortgage executives were worried ...


September 8, 2017 - Inside Mortgage Trends

CHLA Underscores Importance of Nonbanks

Independent mortgage bankers are leading all other lenders in providing mortgage loans to first-time homebuyers, minorities, lower-income borrowers and rural areas, and yet they are more regulated than banks, according to a new industry report. The report from the Community Home Lenders Association underscores the fact that IMBs are small businesses that don’t have access to federally insured deposits. It claims that IMBs have done a better job of servicing home loans ...


September 8, 2017 - Inside Mortgage Trends

Interest in Mortgage Tech Heats Up

Over the past few weeks, two $100 million-plus transactions involving mortgage technology companies have been announced, signaling that more activity may be ahead in the space as residential finance moves toward the digital age. “This is an interesting time,” said consultant Jeff Lebowitz, a former Fannie Mae executive who has been tracking tech changes for two-plus decades. “There’s a paradigm shift going on. Outside guys are coming in, thinking there’s big changes ahead for ...


September 8, 2017 - Inside Mortgage Trends

Lender Pricing Depends on Consumer Demand

Interest rates offered for mortgages generally track with pricing for the loans in the secondary market. However, new research published by the National Bureau of Economic Research suggests that lenders offer worse pricing to borrowers when demand for loans is relatively strong. The findings were detailed in a working paper authored by Andreas Fuster, Stephanie Lo and Paul Willen. Fuster and Willen are in research departments at Fed banks, while Lo is currently a ...


September 8, 2017 - Inside Mortgage Trends

Mortgage Bankers Rebound in Second Quarter

Mortgage-banking profits improved dramatically during the second quarter as production volume surged and servicing held its own, according to data reported by the Mortgage Bankers Association. Participants in the group’s quarterly mortgage-banking performance study reported average pretax income of $2.12 million for the second quarter. That was up handsomely from the average $886,000 companies earned in the first three months of the year. Profits weren’t as strong as they were ...


September 8, 2017 - Inside Mortgage Trends

Large Banks Still Backing Away From Mortgage Servicing, Valuations Steady

A handful of large banks continued to retreat from the business of servicing home loans for other investors during the second quarter of 2017, according to a new Inside Mortgage Trends analysis of call reports. Commercial banks and savings institutions reported that they serviced $3.627 trillion of residential mortgages for other investors, typically mortgage-backed securities trusts, as of the end of June. That was down just 0.4 percent from the previous period ... [Includes one data chart]


September 8, 2017 - IMFnews

First-Time Homebuyers Begin to Shape the Housing Market, Prices

It appears that 2017 is shaping up to be one of the biggest years for the first-time homebuyer market…


September 8, 2017 - IMFnews

ATTOM: Co-Borrowing on the Rise

Homebuyers are increasingly relying on co-borrowers to help with home purchases...


September 7, 2017 - IMFnews

Wells Fargo’s Acquisition of Seneca Mortgage – a Fluke or Something Else?

In late August, a notice appeared on the website of the Federal Trade Commission under the banner of the agency’s “pre-merger notification program,” identifying Wells as the winning bidder…


September 7, 2017 - IMFnews

Delinquencies Inch Up in 2Q17. A Trend or a Blip?

The increase in delinquencies was driven by loans going late in 30-60 day category…


September 7, 2017 - IMFnews

Purchase-Mortgage Blowout: 2Q17 Highest Volume Since 3Q06

Purchase loans accounted for 67.5 percent of the estimated $455.0 billion in first-lien mortgage originations during the April-June cycle...


September 5, 2017 - IMFnews

Jet Direct Takes Off Into Wholesale

The company hired industry veteran Joseph Boiano to oversee the new division…


September 5, 2017 - IMFnews

The Yield on the 10-Year Treasury Hits a 10-Month Low. More Refis?

Lower rates could translate into more refinancings, but could cause hedging problems for Fannie Mae and Freddie Mac…


September 5, 2017 - IMFnews

During Labor Day Speech, CFPB Director Corday Sounds a Little Like a Candidate

Sounding like a candidate, the CFPB Director noted: “If we do not push back on the forces that press people down, we are allowing America’s promises to go unfulfilled.”


September 1, 2017 - Inside FHA/VA Lending

Agencies Issue Special Assistance Guidance for Lenders, MBS Issuers

As Hurricane Harvey’s floodwaters recede, federal agencies that provide guarantees on mortgages are faced with the daunting task of identifying and assisting borrowers with government-backed mortgages in disaster-stricken areas of Texas. FHA, VA, the U.S. Department of Agriculture’s Rural Housing Service and Ginnie Mae have issued special relief guidance for approved lenders following Hurricane Harvey. The FHA has issued guidance to remind lenders and servicers that FHA-insured mortgages secured by properties in a presidentially-declared major disaster area are subject to a 90-day moratorium on foreclosures following a natural disaster. FHA also provides lenders an automatic 90-day extension upon expiration of the moratorium to begin or re-start foreclosure action or evaluate the borrower’s need for loss mitigation. In addition, FHA urged servicers to brush up on the 203(h) and the ...


September 1, 2017 - Inside FHA/VA Lending

FHA Extends Indefinitely Interim Rules for Condo Project Approval

The FHA this week extended temporary rules for approving condominium projects for FHA financing indefinitely. The extension will remain in place until the condominium rulemaking process is completed, the agency said in a mortgagee letter. Temporary approval requirements were first issued in 2012 and later modified in 2015. The current temporary provisions expired on Aug. 31, 2017. Under a proposed rule issued for comment on Sept. 27, 2016, elderly condominium owners would find it easier to obtain a Home Equity Conversion Mortgage. FHA proposes to reinstate “spot condo” approvals whereby individual units are approved by FHA rather than the entire condominium project as required under current rules. Spot-condo approvals would require property recertification every three years rather than the current two-year requirements. Processing recertifications would be streamlined under the ...


September 1, 2017 - Inside FHA/VA Lending

FHA, VA Reach Lowest Delinquency Levels in 2Q17, MBA Survey Finds

The FHA and VA reached a milestone of sorts in the second quarter of 2017 when both agencies hit their lowest delinquency levels in as many years, according to the Mortgage Bankers Association’s quarterly survey of mortgage delinquencies nationwide. The FHA delinquency rate fell to 7.94 percent from 8.09 percent in the first quarter on a seasonally adjusted basis, reaching its lowest level since 1996. Also on a seasonally adjusted basis, the VA delinquency rate declined to 3.72 percent from 3.90 percent in the previous quarter, the lowest it has been since 1979. Mortgage delinquencies also decreased for conventional loans on a seasonally adjusted basis. It dropped to 3.47 percent from 4.04 percent in the first quarter on a seasonally adjusted basis. Overall, the delinquency rate for mortgage loans on single-family residential homes fell to a seasonally adjusted rate of 4.24 percent of all ...


September 1, 2017 - Inside FHA/VA Lending

Borrowers Warned on Use of HECMs to Delay SS Benefits

Working past age 62 is usually a less costly way to increase a senior’s Social Security benefit than borrowing a reverse mortgage, according to the Consumer Financial Protection Bureau. In a report published last week, the CFPB warned that a strategy touted by financial consultants to seniors – borrowing a reverse mortgage loan to get more SS benefits later – could result in significant costs that may erase gains from delaying SS benefits. The strategy would require older homeowners to borrow a reverse mortgage at age 62, the minimum age a person can begin collecting SS benefits, in order to delay claiming such benefits. This means retirees would use the proceeds from a reverse mortgage to replace the money they would otherwise receive from SS in the years between 62 up to their full benefit age of 66 (for those born before 1960) and 67 (for those born after 1960), or their maximum ...


September 1, 2017 - Inside FHA/VA Lending

Fewer HECM Borrowers Expected As Program Changes Take Effect

The Department of Housing and Urban Development this week announced changes to the FHA-insured reverse mortgage program, including a 200 basis point adjustment in the upfront mortgage insurance premium that may shut out some potential borrowers. HUD officials acknowledged during a press call that changes in both the upfront MIP and the HECM principal limit factors could reduce the number of borrowers initially by as much as 20 percent. Officials estimated that there are approximately 24 million seniors with untapped equity in their homes. “Overall, it is still a very large potential market,” said one official who spoke on background. “In the last few years, we did about 45,000 to 50,000 reverse mortgages annually. The net effect of all these changes is a better and safe HECM program for seniors. We’ll just have to wait and see how it plays out.” The revisions would help stabilize the ...


September 1, 2017 - IMFnews

Mortgage Employment Begins to Lag, Brokers Cut Jobs

Brian Benjamin, who runs Two River Mortgage & Investment in Red Bank, NJ, noted that if brokerage shops are laying off, “it’s support staff.”


September 1, 2017 - IMFnews

Mortgage Reinsurance Market Shows Great Promise, but Risks Abound

Reinsurers coming late to the feast might find slimmer pickings as pricing continues to tighten in the sector…


September 1, 2017 - IMFnews

Freddie Mac: Originations of Purchase Mortgages Constrained by Cash Sales

Before the financial crisis, about 10 percent of home sales were all-cash transactions…


August 30, 2017 - IMFnews

Mortgage Applications Take a Late Summer Vacation

The refi share of new applications continues to rise…


August 30, 2017 - IMFnews

HUD Quadruples the Upfront Reverse Mortgage Premium. NRMLA Not Happy

NRMLA said the changes "diminish the benefit (amount of loan proceeds) available and increase the costs (increased upfront mortgage insurance premium) to most borrowers.”


August 30, 2017 - IMFnews

Eli Global Wants to be a Player in Mortgages, but Who Are These Guys?

Another source added: “Eli’s interest in the industry is legit. They want to buy and hold companies.”


August 30, 2017 - IMFnews

MBA: Production Profits Soared in 2Q17 – Thanks to a Reduction in Expenses

Meanwhile, net servicing income fell to $27 per loan in 2Q17 from $225…


August 29, 2017 - IMFnews

A One-Year Moratorium on Mortgage Payments in Hurricane-Ravaged Counties?

Cowen & Co. predicts that storm damage caused by the hurricane could “encourage” lender consolidation…


Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

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