Mortgage origination volume dropped precipitously in the third quarter of 2008, hitting an eight-year low of just $300 billion in new loan production, according to a new Inside Mortgage Finance ranking and analysis. New originations declined 33 percent from the previous quarter. In percentage terms, it was the largest quarterly decline in... [Includes one chart and one graph]
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Wells Fargo was the top originator through the first nine months of 2008 in a market undergoing a massive competitive shakeup and huge declines in new production. Wells originated $186.27 billion in new home loans during the first three quarters of this year, or 15.1 percent of total production in the market. The company’s new lending volume fell... [Includes one chart and one graph]
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“This is the bill that will not die,” Jason Cole, executive director for federal affairs at UBS Americas, said of proposed cramdown provisions being floated in Congress. The industry’s battle against allowing bankruptcy judges to reduce mortgage debt could end as soon as this year, according to lobbyists at the Mortgage Bankers Association’s annual convention last week in San Francisco...
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The tug-of-war over loan modifications is growing more intense as legal and political challenges continue to reveal a complex problem that’s getting more severe as defaults keep climbing. Democrats on the House Financial Services Committee this week jumped all over two hedge funds that had reportedly sent letters to mortgage servicers warning them about participating in a new...
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Industry attorneys are concerned about the “mob mentality” that appears to be driving an enforcement push to punish those whom regulators believe contributed to the financial crisis. Financial institutions’ biggest fear in this tough regulatory climate is increased enforcement litigation risk, particularly at the state level, according to attorneys with the Washington law firm
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The continuing turmoil in the housing and credit markets and the placing of Fannie Mae and Freddie Mac into conservatorship last month has set off alarm bells in the offices of some members of the House of Representatives. The lawmakers are demanding more information and accountability from Fannie’s and Freddie’s regulator, federal law enforcement officials, and former...
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Non-bank creditors and financial institutions have until May 1 next year to comply with the Federal Trade Commission’s new “Red Flags Rule,” which requires companies to develop and implement written identity theft-prevention programs. The rule became effective Jan. 1, 2008, for all federally regulated lenders and compliance becomes mandatory on Nov. 1. While there has been no change in the...
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