The CFPB has established new reporting requirements on loans for small businesses. Investment-property loans already reported under HMDA are exempt from the new standards.
First Republic’s servicer rating downgraded; Moon Mortgage offering jumbos with qualification based on cryptocurrency holdings; DBRS adds due diligence provider to “acceptable” list; Utah loosens age requirement for proprietary reverse mortgages.
An effort by big banks to prop up First Republic Bank triggered downgrades by rating services and only temporarily paused the decline in the bank’s share price. The bank is considering various strategic options.
Lenders originating ARMs weren’t able to buck the broader trend of declining originations in the fourth quarter of 2022. Still, on an annual basis, the ARM share nearly doubled in 2022 thanks to rising interest rates. (Includes data chart.)
The bank has been addressing fraud in its non-QM program since late 2019. The cleanup has involved fines, settlements, buybacks and the departure of more than 100 officers and employees.
Holdings of first-lien mortgages at banks and thrifts increased by nearly 10% in 2022. First Republic Bank stood out with a nearly 30% increase. (Includes data chart.)
Altisource Asset Management is now originating bridge loans and non-agency mortgages for investment properties. The firm has agreements to sell whole loans to insurance companies and asset managers.
The non-QM share of Impac’s originations increased significantly in 2022. Still, its margins declined due to competition among lenders for non-QMs and weak demand for the loans in the secondary market.