Originations of interest-only mortgages declined by 6.6 percent on a sequential basis in the third quarter among a group of lenders surveyed by Inside Nonconforming Markets. Total first-lien mortgage originations declined by 2.2 percent in that span. Fifteen lenders originated $4.74 billion of IOs in the third quarter. Some 33 percent of the lenders managed to increase their IO production on a quarterly basis, with large gains at Citadel Servicing, PNC Mortgage and ... [Includes one data chart]

The Consumer Financial Protection Bureau proposed new policies this week regarding no-action letters and the establishment of a “product sandbox.” The proposal aims to help financial services companies develop innovative products. Lauren Saunders, associate director of the National Consumer Law Center, was highly critical of the proposal, claiming that it could “wipe out consumer protection laws for entire industries.” She said the proposal is certain to ... [Includes four briefs]

The panel Mozilo spoke on was billed: “Join two titans of the industry as they discuss the past, present and future of the mortgage industry.”

The FHA has announced that protocols in place for second appraisal requirements for certain Home Equity Conversion Mortgage loans are now fully automated.

The home-equity market peaked back in 2007 at $1.133 trillion in outstandings. It has been in an 11-year swoon since then.

Loans from 36 lenders will be included, led by Sprout Mortgage with a 43.3 percent share.

Home-equity lending remains one of the soft spots in the mortgage market, as the supply of loans outstanding continued to shrink and new lending volume remained anemic in the third quarter. [Includes three data charts.]

Negative equity – or even just the perception of it – is the most important determinant of default rates, according to a recent study by Collateral Analytics.

However, retail remains king of the jumbo sector…

Based in Henderson, NV, Sprout is a correspondent lender.