Despite a significant drop in origination volume during the fourth quarter, banks reported a healthy increase in mortgage banking income as 2009 came to a close, according to a new Inside Mortgage Profitability analysis. Bank call report data show that the industry recorded $5.966 billion in net income from mortgage banking activity during... [Includes one chart and one graph]
Read More
A policy change announced recently by the Department of Labor classifying mortgage loan officers as “production workers” and eligible for overtime pay exposes employers to potential class action and monetary damages that could hurt their bottom lines.Issued by the DOL Wage and Hour Division, the March 24 ruling provides that commissioned loan officers do not qualify...
Read More
In an effort to improve its focus on qualified mortgage applicants and boost profitability, GMAC’s ResCap unit recently realigned its pay structure for loan officers to more closely link their compensation to the overall performance of the mortgages they help originate. “ResCap implemented a new structure for our mortgage loan officers beginning this month that more...
Read More
The Obama administration’s latest effort to stabilize the mortgage market – the Home Affordable Foreclosure Alternatives program – formally set sail this week, but observers question whether the program is seaworthy yet. HAFA is designed to reduce losses for borrowers eligible for the Home Affordable Modification Program who aren’t able to complete a successful loan mod. It provides incentives for investors...
Read More
Providence, RI-based Embrace Home Loans, a direct lender for Fannie Mae and Freddie Mac, approved by FHA and VA, and an issuer for Ginnie Mae, is making the most of the tremendous dislocation that has occurred in the mortgage business over the last two years to make some key strategic moves and important personnel acquisitions.The lender, pursuing a target of $3 billion in total originations...
Read More
Department of Justice investigators are trying to determine the extent of the damage caused by faulty paperwork prepared by a subsidiary of a top document provider for banks in foreclosure proceedings. Docx LLC in Alpharetta, GA, is under investigation for processing foreclosure-related documents that reportedly contained patently false and misleading information regarding the ownership...
Read More
The FHA announced this week it will begin accepting electronic signatures on third-party documents originated and signed outside of the lender’s control, such as real estate contracts, helping streamline the process for borrowers and lenders. “This is just the beginning of FHA’s commitment to use more electronic documents in our loan approval process,” said FHA...
Read More
Retreat Capital Management Group, an end-to-end provider of loss mitigation and portfolio management... AppraisalWorld, a valuation services portal and solutions provider, announced this week that Key Point... HOPE LoanPort, a Web-based tool that streamlines loan modification applications on behalf of borrowers...
Read More