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Inside Mortgage Finance

July 28, 2006

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Jostling at the Top as Mortgage Origination Volume Surges in Second Quarter of 2006

Mortgage production levels bounced higher in the second quarter of 2006, sending year-to-date origination volume over last year’s very high levels, according to a new market analysis and ranking by Inside Mortgage Finance. An estimated $800 billion of single-family mortgages were originated during the second quarter, up 13.5 percent from a revised estimate of $705 billion for the first three months of the year. That brought year-to-date originations to $1.505 trillion, up 3.4 percent from… [Three data tables included] Read More

FHA Reform Gains Speed as House Approves FHA Risk-Based Pricing and Other Changes

Congress is moving closer to giving the Department of Housing and Urban Development authority to modernize the FHA mortgage insurance program as the House this week approved a reform bill that provides for risk-based pricing, a zero downpayment option and higher loan limits. The House authorization bill now awaits action by the Senate, which has yet to consider its companion legislation, S. 3535. However, a spokesman for the Mortgage Bankers Association noted that a more… Read More

GSE Risk-Based Capital Rules are Ineffective, Regulator Says in Urging Legislative Overhaul

The current rules that govern the capitalization levels of Fannie Mae and Freddie Mac are fundamentally inadequate, according to the safety and soundness regulator of the two mortgage giants. Speaking at a mortgage industry event in Washington, DC, this week, James Lockhart, the director of the Office of Federal Housing Enterprise Oversight, said his agency’s risk-based capital rules for Fannie and Freddie need to be substantially revised. … Read More

WaMu Sale Should Cement Wells Fargo’s Hold On the Ginnie Mae Servicing Market

Wells Fargo’s stranglehold on the Ginnie Mae servicing market is about to get tighter thanks to the purchase of a massive portfolio from its nearest competitor, Washington Mutual. WaMu said that its decision to sell $140 billion in servicing rights, including all its FHA and VA servicing as well as its Milwaukee servicing platform, reflects a strategic decision to exit the FHA lending business. … [One data table included] Read More

Correspondent Originators Switch Between Channels Depending on Product Niche, New Research Finds

While the traditional correspondent lender in the residential mortgage market was once a small bank or thrift, the majority of correspondents now classify themselves as independent mortgage companies. And in many cases this new breed of correspondent lender has the option of selling mortgages as either a correspondent or a wholesale broker. … Read More

S&P Lowers Minimum Servicing Fees for Loans In Non-Agency MBS; Will Agencies Follow?

Standard & Poor’s this week joined other rating services in lowering minimum mortgage servicing fees required for several categories of loans securitized in the non-agency MBS market. Many mortgage bankers have pressed for an across-the-board reduction in servicing fee requirements that were developed decades ago for Fannie Mae, Freddie Mac and Ginnie Mae programs. Since that time, technology has driven down servicing costs, lenders say, forcing servicers to carry unnecessarily high servicing fees on their… Read More

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