Trends & Profitability

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

October 20, 2017 - Inside Mortgage Trends

Private MI Gaining Market Share from FHA

Private mortgage insurers are winning purchase-mortgage business away from the FHA, and VA lending is also gaining ground, according to an analysis of agency mortgage-backed securities data by Inside Mortgage Trends. Lenders delivered $50.25 billion of purchase loans with private MI coverage into agency MBS during the third quarter of 2017. That represented 40.2 percent of total insured purchase loans securitized by the agencies, up from 39.3 percent ... [Includes one data chart]

October 20, 2017 - Inside Mortgage Trends

Quicken Loans Enters Digital Mortgage Phase

Quicken Loans is a step closer to completing a process that would take it away from aging legacy systems into the world of digital mortgages. The Detroit-based lender has announced a partnership with eOriginal, Inc. that would enable it to complete the final steps towards digitally creating an electronic mortgage note. The process would also allow Quicken to store the e-note securely as an “authoritative copy” and transmit it to a custodian and the secondary market almost instantaneously ...

October 20, 2017 - Inside Mortgage Trends

Wells Developing ‘Next Gen’ Mortgage Application

Wells Fargo is working on an online mortgage application process that’s even more advanced than Quicken Loans’ Rocket Mortgage, according to officials at the bank. “I would describe what we’re doing as kind of the next generation, because it’s not just about giving a fast answer,” Timothy Sloan, president and CEO of Wells Fargo, said last week during the bank’s earnings call. He was asked to compare the application Wells is developing with Rocket Mortgage, which allows for a ...

October 20, 2017 - Inside Mortgage Trends

Older Homeowners Holding More Mortgage Debt

A higher share of Baby Boomers are carrying mortgage debt in retirement than previous generations, prompting concerns about potential foreclosures and other financial issues, according to an analysis by Fannie Mae. “Even with the post-recession acceleration in free-and-clear homeownership, Boomers appear unlikely to attain mortgage-free retirements at the same rate as the predecessor generation,” Patrick Simmons, a director of strategic planning in Fannie’s economic ...

October 20, 2017 - Inside Mortgage Trends

Mortgage Process is Speeding Up, Thanks to Digital

Shopping timelines for purchase mortgages are continuing to shrink, according to a new study by LendingTree, an online loan marketplace based in Charlotte, NC, confirming a broader downward trend identified as well by Ellie Mae, a cloud-based platform provider in Pleasanton, CA. Much of the progress was attributed to the digitalization of the mortgage process. LendingTree analyzed data from a sampling of more than 5,000 closed loans from March 2016 through May 2017 ...

October 20, 2017 - Inside Mortgage Trends

Nonbanks Mostly on Sidelines of HEL Market

A little over two years ago, nonbank mortgage giant loanDepot unveiled a second-lien lending program, paving the way for some of its peers to enter the space. But so far, few have stuck their toe in the water. Moreover, it doesn’t seem as though loanDepot is exactly lighting the world on fire with the product, but that could change in the quarters ahead, especially if rates rise and consumers opt to tap equity by taking out a second. loanDepot declined to talk about its program and ...

October 20, 2017 - Inside Mortgage Trends

Agency Servicing Transfers Heated Up in 3Q17, Reshaping MSR Market

The secondary market in transfers of agency mortgage servicing rights continued to gain momentum during the third quarter of 2017 as long-time players in the mortgage industry executed plans to shift strategy. A new Inside Mortgage Trends analysis of agency mortgage-backed securities disclosures shows an estimated $150.80 billion of Fannie Mae, Freddie Mac and Ginnie Mae servicing changed hands during the third quarter. Much of the activity reflected ... [Includes three data charts]

October 20, 2017 - IMFnews

Brokers Wanted to Send a Message to Wholesalers, Starting a ‘BRAWL’

BRAWL chief Tony Casa said if loan brokers want to send a message to firms that operate in both wholesale and retail, brokers should take their business elsewhere.

October 19, 2017 - Inside Mortgage Finance

Housing Industry Groups No Longer United in Stance on Value of Mortgage Interest Deduction

The mortgage interest deduction, or MID, used to rank with apple pie and motherhood for real estate agents, mortgage lenders and homebuilders. But against the backdrop of an intense effort by Republicans to overhaul the tax code, some groups are showing more flexibility on the issue. Complicating matters is that neither the Trump administration nor key players on Capitol Hill have been explicit or consistent in what they want. The Mortgage Bankers Association wrote to the ...

October 19, 2017 - Inside Mortgage Finance

Ocwen’s Departure from the Wholesale Channel Sparks Speculation About a Total Exit from Lending

Ocwen Financial, which continues to work through an array of regulatory settlements, is shuttering its wholesale-broker division, a move that’s sparking speculation about its future as an originator. The strategy shift is curious on several fronts: the disclosure was buried at the bottom of a recent regulatory filing on state settlements; broker-wholesale production accounts for roughly half of the company’s originations; and management not too long ago expressed a desire to ...

October 19, 2017 - Inside Mortgage Finance

Brokers Voice Frustrations about ‘Whole-Tail’ Lenders: Wholesale Lenders that also have Retail Operations

Long-running tension between mortgage brokers and retail lenders with wholesale operations ratcheted up recently as a new group urged brokers to stop working with “whole-tail” lenders. Brokers Rallying Against Whole-tail Lending said it coined the term “whole-tail” lender as “a swipe at lenders that offer both wholesale and retail services on paper, when in reality, their primary business objective is to feed stolen prospect information directly to their affiliate companies.” “It is important that ...

October 19, 2017 - Inside Mortgage Finance

Big Banks Report Decent Production Figures for Third Quarter of 2017

It’s still early in the reporting cycle for third-quarter results, but major banks so far have reported solid origination gains from the previous period, but nothing to set the world on fire. In terms of percentage gains, JPMorgan Chase reported a 12.5 percent increase from the second to the third quarter. U.S. Bancorp was up 11.0 percent, Wells Fargo had a 5.0 percent gain and Citigroup reported a 3.2 percent increase. Bank of America mortgage originations were down slightly. The five ...

October 19, 2017 - IMFnews

Stearns Reorganizes a Bit, Cuts 159 Jobs in California, but Plans to Rehire in Texas; Seeks LOs

“We continue to be bullish on the business,” said Stearns CEO David Schneider.

October 19, 2017 - IMFnews

Mortgage Due Diligence Firms Open to Working Together to Standardize Reporting

Each due diligence firm applies its own interpretation of compliance...

October 18, 2017 - IMFnews

Short Takes: The Little Guy Gets a G-Fee Break / A Coming Spike in G-Fees? / More Financial Maneuvers by Radian / A Hot Streak for Non-Agency Prime MBS / A Stock Market Crash Warning from Treasury Secretary Mnuchin

Might this suggest that g-fees charges could spike next year when zero hour comes?

October 18, 2017 - IMFnews

U.S. Bancorp Grows Residential Production by Almost 10 Percent

Compared to the same period a year ago, residential loan production declined by 19.6 percent...

October 18, 2017 - IMFnews

Radian Discloses More Pain from Services Unit (Clayton); Tennyson is Out as President

The MI also terminated Jeff Tennyson as president of the unit. No replacement will be named, a spokeswoman told IMFnews.

October 18, 2017 - IMFnews

Institutional Investors Reduce Positions in PHH. Meaning?

The disclosures aren’t entirely surprising given that PHH recently wrapped up a generous buyback offer…

October 18, 2017 - IMFnews

Redwood Aims for Jumbos Outside of Banks’ Focus

Redwood’s Choice loan program allows for debt-to-income ratios of up to 49.9 percent while the limit for Select is 43.0 percent…

October 17, 2017 - IMFnews

Ranked No. 442 as an Originator, Fintech Firm Corrals $457 Million in Financial Commitments

Formed in 2014, LH originated $598 million in 2016, ranking 442nd overall, according to Home Mortgage Disclosure Act figures compiled by Inside Mortgage Finance.

October 16, 2017 - IMFnews

Short Takes: Large Nonbank Ready to Enter Second-Lien Market / Mortgage Layoffs in California? / The 30th Anniversary of ‘Black Monday.’ Beware? / UWM Rolls out ‘Client Loyalty’ Tool for Brokers / Annaly CEO will Become Chairman, Eventually

A large nonbank is about to enter the second-lien market...

October 13, 2017 - Inside FHA/VA Lending

HUD Dumps Lender Insight for New Loan Review Summary Report

The Department of Housing and Urban Development is discontinuing its quarterly newsletter, Lender Insight, with the implementation of FHA’s Loan Review System. The change is aimed at improving both FHA’s and lenders’ quality-control and risk-management operations. HUD will be publishing a quarterly Loan Review Summary Report to provide a snapshot of the results of FHA’s quality-control review of mortgage originations over the preceding 12 months. According to HUD, the report will include only underwritten loans that were subject to a post-endorsement technical review. It does not include the results of lenders’ self-reports or any other loans that were reviewed as part of a lender examination, the agency said. The report will show the initial rating of all loans, the updated rating six months from the end of the review period, and a final rating. The “final” rating is subject to change as long as ...

October 13, 2017 - Inside FHA/VA Lending

FHA Eases Occupancy Rule for Properties with H4P Financing

The FHA has updated its guidelines for Home Equity Conversion Mortgage for Purchase (H4P) loans to allow lenders to accept loan applications from borrowers without requiring a certificate of occupancy, as well as prior to completion of HECM counseling. The change follows the Sept. 19 effective date of the HECM final rule, which the Department of Housing and Urban Development released earlier this year. The final rule codifies the many policies that are now in place for originating and servicing reverse mortgages, including H4P requirements. According to the revised guideline, an FHA lender may take an initial HECM loan application either prior to or after the completion of HECM counseling. Also, previously, H4P properties were eligible for FHA insurance only when construction was completed and when the local jurisdiction issued a certificate of occupancy or its equivalent, confirming the ...

October 13, 2017 - Inside FHA/VA Lending

Ginnie Reveals Nearly 10 Percent Exposure in Disaster Areas

An estimated 9.8 percent of Ginnie Mae’s business may be potentially at risk due to hurricanes Harvey, Irma and Maria, according to data released recently by the agency. The data represent the number of Ginnie loans and their unpaid principal balance amounts in presidentially declared disaster areas in Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. A total of 1.07 million mortgage loans with an unpaid principal balance of $184.5 billion have been affected. Ginnie Mae’s current mortgage-backed securities portfolio totals $1.9 trillion. The data only refer to the geographic locations of all affected properties underlying loans in Ginnie MBS pools and do not indicate the percentage of those that may have sustained damage during a storm. Hurricane Irma had the highest share of affected loans, 6 percent, while Harvey and Maria accounted for 3 percent and 1 percent, respectively. Irma caused the ...

October 13, 2017 - Inside FHA/VA Lending

Ginnie Mae, VA Announce Joint Task Force to Stop Improper Refis

Ginnie Mae and the VA this week officially announced a joint-agency task force to deal with the loan-churning problem that is triggering faster prepayments in Ginnie mortgage-backed securities pools. Specifically, the task force will scrutinize aggressive and misleading refinancing offers and address loan churning and repeated refinancings. It will also examine critical issues, data and lender behaviors related to refinancing loans, as well as determine the kind of policy and program changes agencies should make to ensure VA refi loans do not pose an undue risk or burden to vets and taxpayers. Both the VA and Ginnie Mae programs work best when market participants use them to provide a benefit to VA borrowers and, ultimately, lower vet’s costs, officials said. The task force has begun examining data and information to ensure refi loans provide net tangible benefits to veteran-borrowers. In addition, the ...

October 13, 2017 - Inside FHA/VA Lending

Carson Open to Excising HECM From Mortgage Insurance Fund

Department of Housing and Urban Development Secretary Ben Carson indicated he is open to the idea of moving the Home Equity Conversion Mortgage program out of the FHA Mutual Mortgage Insurance Fund to stem future losses. Testifying before the House Financial Services Committee this week, Carson said the changes the department has made recently, as well as those currently under consideration, will eliminate most of the program’s problems although residual issues may still linger. Carson acknowledged that the HECM program’s default rate has been a drain on the MMI Fund even though it is much smaller than the FHA’s forward loan portfolio. The recently revised HECM rules issued on Sept. 19 have “stopped the bleeding” in terms of new reverse mortgages, he added. However, separating the HECM portfolio from the FHA insurance fund and making it a stand-alone program is ...

October 13, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rolled To Year’s High Mark in 3Q17

Ginnie Mae issuers rode a wave of purchase-mortgage lending to deliver $120.46 billion of forward mortgages during the third quarter of 2017, the highest three-month volume for the year, according to a new analysis and ranking by Inside FHA/VA Lending. Third-quarter volume was up 9.6 percent from the April-June cycle. The data excluded FHA reverse mortgages and loan amounts are truncated in Ginnie’s mortgage-backed securities disclosures. Without those limitations, total Ginnie MBS issuance rose 9.5 percent to $123.37 billion in the third quarter. Purchase mortgages were the engine behind the growth. Ginnie issuers securitized $85.35 billion of purchase loans in the third quarter, falling just short of the record $85.41 billion set in the third quarter of last year. Although most Ginnie purchase loans (58.7 percent) were FHA loans, the biggest increase was in such loans guaranteed by the ... [Charts]

October 13, 2017 - IMFnews

A Modest Uptick in Home Lending for Wells Fargo in 3Q17; Meanwhile, a $1 Billion Legal Charge for Mortgage Investigations

Gain-on-sale profits came to 124 basis points, flat from the prior period, and the weakest reading of the past five quarters...

October 13, 2017 - IMFnews

A (Slight) Drop in Originations at BofA for 3Q17

Home equity lending fell even more at BofA: down 12.7 percent from the prior period...

October 13, 2017 - Inside MBS & ABS

Annaly Registers 65 Million Shares of Common as The ‘mREIT’ Sector Remains Generally Healthy

Annaly Capital Management, the nation’s largest real estate investment trust focused on the MBS market, hopes to raise upwards of $780 million through the sale of additional shares of common stock – money that it will invest in MBS and related assets. According to a press statement made by the New York-based firm, it also plans to further diversify its investments, putting the new money to work in commercial and “corporate credit assets.” In total, Annaly registered 65 million shares of ...

October 12, 2017 - Inside Mortgage Finance

Stearns Lending Reveals it Has a Mortgage Joint Venture with SoFi

Social Finance, the high-flying marketplace lender, has an active mortgage-lending joint venture with Stearns Lending, according to David Schneider, CEO of Stearns. In a recent interview with Inside Mortgage Finance, Schneider said his company “covers a lot of [SoFi’s] business” and buys any loan the joint venture produces. “They do some, and we do some,” Schneider said. He added that Stearns doesn’t service any loans for SoFi. At the recent ABS East conference in Miami, Ashish Jain ...

October 12, 2017 - Inside Mortgage Finance

As PHH Exits Private-Label Sector, Big Jumbo Client Up for Grabs, Investors Take Stock Buyback Offer

Over the past week or so, at least two institutional investors have filed notice with the Securities and Exchange Commission that they no longer own large positions in PHH Corp., the publicly traded nonbank that’s trying to reinvent itself as a subservicing specialist. The two filers are investment banking powerhouse Morgan Stanley – which at one time owned 5.2 percent of PHH – and Hotchkis and Wiley Capital Management, whose stake totaled 8.8 percent. Today, Morgan’s position ...

October 12, 2017 - IMFnews

Short Takes: Residential Production Plunges at Citi / MSR Holdings Down Too / But a Nice Profit for 3Q17 / JPMorgan Readies New Non-Agency MBS / Ocwen Exiting Wholesale Channel / Fannie Announces New NPL Auctions

Citi’s third-party servicing portfolio is down to $49.1 billion from $147.6 billion at Sept. 30, 2016...

October 12, 2017 - IMFnews

KBW: Don’t Expect Much Improvement from Gain-on-Sale

“We estimate that gain-on-sale margins will be roughly flat quarter to quarter,” writes KBW analyst Bose George…

October 12, 2017 - IMFnews

JPM Grows Residential Lending by Almost 13 Percent in 3Q17, Keeps Adding to Whole-Loan Portfolio

Total mortgage banking revenue for the period came in at $1.56 billion compared to $1.43 billion in 2Q17...

October 12, 2017 - IMFnews

Private MI Business Kept Growing in 3Q17, FHA Activity Lagged

Fannie and Freddie saw a 26.7 percent jump in insured first-timer loans…

October 11, 2017 - IMFnews

Credit Report Gripes Filed with the CFPB Go Sky High

Gripes to the bureau leapt by 53.4 percent on a sequential basis…

October 11, 2017 - IMFnews

The GSEs Should Report Robust Earnings for 3Q17. Here’s Why…

A previously announced legal settlement with Royal Bank of Scotland will soon hit the books...

October 10, 2017 - IMFnews

A ‘BRAWL’ Forms, Broker Group Accuses Certain Lenders of Stealing Borrowers

For now, BRAWL isn’t naming names, but credited three lenders for being “true partners” because more than 90 percent of their production comes through the wholesale channel...

October 9, 2017 - IMFnews

Mortgage Brokers Added 1,400 Jobs in August, Lenders Not so Much

Steve Abreu, founder and CEO of Newfi, said the privately held nonbank is taking resumes from wholesale representatives and underwriters.

October 6, 2017 - Inside Mortgage Trends

Partnership Promotes Singular, Digital Platform

Industry activity to promote the digitalization of the mortgage process seems to be accelerating of late. This week, ServiceLink, a provider of transaction services to the mortgage industry, and Roostify, a provider of automated lending technology, announced a partnership they said will extend the digital experience for lenders and consumers alike. Chris Azur, CEO of ServiceLink, said the pairing will improve the overall consumer and lender mortgage experience through enhanced ...

October 6, 2017 - Inside Mortgage Trends

Using SaaS as ‘Fast Pass’ to the Digital Mortgage

Accenture, a global professional services company, is re-imagining Software-as-a-Service to give mortgage lenders an advantage in migrating to a digital lending environment. In a new white paper, the firm begins by noting that mortgage lenders are moving as quickly as possible these days toward the digital mortgage. “While each lender defines this product slightly differently, the consumer sees it as an overdue evolution in home finance,” said Accenture. “There are many advantages for ...

October 6, 2017 - Inside Mortgage Trends

Private Money, Fix & Flip Markets Growing

Thanks to a comeback in private-money lending and a boom in the “fix-and-flip” sector, FCI Lender Services has seen its servicing portfolio double the past two years to roughly $7 billion. By 2019, it expects to be servicing upwards of $10 billion. At least that’s the forecast from Gordon Albrecht, senior director in charge of marketing and strategies for the Anaheim, CA-based nonbank. “Business is accelerating across the board,” said Albrecht. The only sector that’s not expected to show ...

October 6, 2017 - Inside Mortgage Trends

Few Lenders Are Satisfied with Lending Systems

There’s room for improvement in loan origination system offerings, according to a survey of 250 lenders by Strategic Mortgage Finance Group. The consulting group recently released details from its 2016 survey on lenders’ LOS. Lead generation/management was by far the lowest rated functionality within various systems. Only 4.0 percent of survey participants said the lead generation/management offered by their LOS was highly effective. “With the market shift to more purchase business, the lack ...

October 6, 2017 - Inside Mortgage Trends

Layoffs at HomeStreet Pinned on Housing Supply

Plenty of potential homebuyers have prequalified with HomeStreet Bank for mortgages this year but the bank has significantly cut its mortgage staff because originations have been below expectations. The bank focuses on markets on the West Coast and officials said purchase-mortgage originations have been constrained by a low supply of homes for sale. “The strong West Coast economies and local markets in which we operate are continuing to produce above-average job and population growth ...

October 6, 2017 - Inside Mortgage Trends

Surging Purchase-Loan Sector in GSE Market Lifts Correspondents in 3Q17

Fannie Mae and Freddie Mac saw a huge jump in deliveries of purchase-money mortgages during the third quarter, although the first-timer share of the market fell slightly. The two government-sponsored enterprises securitized $140.75 billion of purchase mortgages during the third quarter, an increase of 26.4 percent from the previous three-month period. Purchase loans accounted for 62.9 percent of loans sold into GSE mortgage-backed securities during ... [Includes two data charts]

October 6, 2017 - IMFnews

Price of Fannie/Freddie Common Up 35 Percent Since Summer. Credit the RNC?

The RNC document says the GOP “recognizes the sanctity of property rights in America,” which should warm the hearts of GSE common and junior preferred shareholders…

October 6, 2017 - IMFnews

Demand for RPLs Strong; Chimera Issues First Deal, MetLife is Ready

MetLife said a number of new investors have started buying RPLs in recent years. And even with the strong demand, it’s still a market that offers relatively attractive returns…

October 6, 2017 - Inside MBS & ABS

Freddie Could Have Blowout 3Q17 Earnings and Fannie Could be Close Behind; But 4Q17 May be a Watershed

Fannie Mae and Freddie Mac – wards of the federal government for over nine years now – are poised to report stellar earnings for the third quarter, likely blowing past results of the prior two periods, according to an analysis by Inside MBS & ABS. Not only did the two government-sponsored enterprises benefit from a strong origination market in the third quarter, and robust guarantee fee income, but a previously announced legal settlement with Royal Bank of Scotland will soon ...

October 5, 2017 - Inside Mortgage Finance

Some Minority Groups Gained Ground in 2016 Mortgage Market, But Still Face Credit Hurdles

Mortgage originations for black and Hispanic borrowers rose significantly faster in 2016 than among whites, according to a new Inside Mortgage Finance analysis of recently-released Home Mortgage Disclosure Act data. The HMDA report reveals that a total of $1.956 trillion of home loans were originated last year, an 18.5 percent increase over the 2015 total. Most observers believe that HMDA undercounts total mortgage originations by about 5 percent ... [Includes one data chart]


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