The decline in refinance mortgage lending that began in early 2013 continued into the third quarter, with refi originations moving to their lowest level in two years. According to a new Inside Mortgage Finance ranking and analysis, refinance mortgage production fell 12.9 percent from the first quarter of 2013 to the second, with an estimated $332.0 billion in new originations for the period. Refinance production has continued to decline since the end of June. Securitization of refinance loans by Fannie Mae, Freddie Mac and Ginnie Mae declined...[Includes three data charts]
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The rise in interest rates that started in May has yet to have a significant impact on the purchase-mortgage market, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. However, analysts say higher interest rates and rising home prices will constrain housing affordability. The non-cash share of home-purchase financing increased for the sixth consecutive month in August to 72.8 percent, based on the three-month moving average. The trend has been driven by a shift from investor purchases of distressed properties to activity among current homeowners and non-distressed properties. The non-distressed market showed...
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It’s no secret that it’s now a seller’s market for mortgage servicing rights, even for legacy portfolios that are suffering from high delinquency rates. But that isn’t stopping outside cash from plowing into the receivables game. “There continues to be a lot of money out there seeking to invest in the MSR market,” said Mark Garland, president of MountainView Servicing Group, Denver. Over the past two years, upwards of $1 billion has been raised...
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The mortgage and housing sectors know that lower loan limits for Fannie Mae and Freddie Mac are coming – but they would like to forestall the day of reckoning for as long as possible, especially in light of looming implementation deadlines tied to a slew of new rules from the Consumer Financial Protection Bureau. Industry lobbyists close to the issue said the Federal Housing Finance Agency was expected to make an announcement by the month’s end on what exactly those loan limits might be. However, some sources said the FHFA was weighing heavily the fact that mortgage lenders are already crunching on technology and compliance upgrades tied to CFPB rules, in particular, the ability-to-repay measure. One official said...
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Late last week, the Consumer Financial Protection Bureau finalized revisions to some of its 2013 mortgage rules slated to take effect in January – mostly mortgage servicing and loan originator compensation regulations – whether the industry is ready or not. The amendments and clarifications that the bureau proposed in June – and now finalized via a final rules on Sept. 13 – include a number of changes sought by various industry groups. There were no big surprises between June and September, but some overlooked details, one of which was the CFPB determining that seller-paid points can be excluded from the 3 percent points-and-fees test for qualified mortgages under its ability-to-repay rule. “Seller’s points...are excluded...
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Although Fannie Mae’s and Freddie Mac’s regulator has previously telegraphed additional increases in the government-sponsored enterprises’ guaranty fees sometime this year, it remains to be seen when or whether the Federal Housing Finance Agency will follow through on its 12-month-old proposal to charge higher g-fees on loans in states with slow foreclosure processes. One year ago this week, the FHFA solicited public comments on a proposal to adjust the single-family g-fee that the GSEs charge in five states with unusually slow foreclosure times. The five states – Connecticut, Florida, Illinois, New Jersey and New York – would be subject to an additional upfront fee of between 15 and 30 basis points charged to lenders. The FHFA has said...
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Mortgage lenders reported originating $2.01 trillion in home-purchase and refinance mortgages during 2012, a 43.7 percent increase from the prior year, according to a new Inside Mortgage Finance analysis of Home Mortgage Disclosure Act data released this week. Because HMDA data typically capture a relatively small share of home-equity originations and some small lenders don’t report at all, the total originations number for last year was somewhat higher. Interestingly, the origination volume grew...[Includes one data chart]
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The Consumer Financial Protection Bureau’s amended final rule on ability to repay and qualified mortgages may have justifiable reasons but it is very complicated and difficult to implement, and likely to have unintended consequences, according to industry attorneys. Notwithstanding recent amendments to address concerns raised by the mortgage industry, the rule continues to pose challenges to lenders and attorneys in various areas. There are problems in the rule’s content and requirements as well as in developing policies and procedures to support it and the software to implement it, attorneys said. “We’re talking...
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