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Inside Mortgage Finance

September 8, 2016

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Surge in Purchase-Mortgage Lending Fueled 2Q16 Production Boom, But Refi Market Also Strengthened

Originations of purchase-money mortgages jumped 44.3 percent from the first to the second quarter of 2016, without any sign of significant easing in underwriting standards. Mortgage lenders produced an estimated $267.0 billion of purchase loans during the second quarter, lifting year-to-date purchase originations to $452.0 billion, an 8.1 percent increase from the first half of last year. The refinance market still had...[Includes three data tables] Read More

Warehouse Commitments Inched Up in 2Q16 But Major Gains Were Had in Lines Drawn

Mortgage warehouse providers ended the second quarter with $55.0 billion of commitments on their books, a 10.0 percent sequential improvement in a red-hot origination market, according to survey figures compiled by Inside Mortgage Finance. Compared to the same period a year earlier, commitment volumes were up 12.2 percent. But the real story was in lines drawn and “average outstandings,” which rose substantially. At Southwest Bank, for example, its commitment level increased...[Includes one data table] Read More

Mortgage Servicing Sales Begin to Accelerate but a Tough Year Overall. Still, 4Q16 Could Mark a Turnaround

After a difficult year so far, sales of mortgage servicing rights are beginning to pick up a head of steam this fall with the hope that the fourth quarter could turn out be a barn-burner. According to interviews conducted by Inside Mortgage Finance this week, servicing advisors for the most part are feeling mildly optimistic about the final three months of the year, although they all admit the obvious: an unexpected drop in rates could spoil the party. But that may not... Read More

Lenders Urged to Loosen Underwriting as Performance Of Post-Crisis Originations Remains Exceptional

The near-zero default rate seen on mortgages originated in recent years combined with lenders’ extensive underwriting processes provide “clear evidence” that lenders should loosen underwriting standards, according to Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center. Wells Fargo originated more than 2.10 million conventional conforming mortgages between 2011 and the end of the first quarter of 2016. Only 4,082 of them became 60+ days past due in the first 24 months after origination, according to Moody’s Investors Service. Goodman said... Read More

Title Agents Bash TRID Clarification Proposal, Real Estate Agents Love Getting Access to Docs

Hundreds of industry participants have written to the Consumer Financial Protection Bureau to express their opposition to or support of the bureau’s attempt to resolve some of the ambiguity associated with its Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure Rule. Title insurers say the CFPB missed a chance to fix a major problem: confusion about title premium charges. Real estate agents say the bureau is making things better for consumers by allowing lenders to share disclosures. One title insurance professional noted... Read More

U.S. Court Applies Landmark SCOTUS Decision in Latest Ruling on FHAct’s Disparate-Impact Provision

A federal court in Texas has dismissed a disparate-impact lawsuit against the Texas Department of Housing and Community Affairs, finding, after years of litigation, that the plaintiff had failed to show sufficient reason for a charge of unlawful discrimination under the Fair Housing Act. The recent decision in The Inclusive Communities Project, Inc. v. The Texas Department of Housing and Community Affairs, et al., is the latest in a series of decisions applying the landmark U.S. Supreme Court decision that found disparate impact is a cognizable claim under the FHAct. The court’s Aug. 26 decision basically reaffirms... Read More

Home Prices Continue Rising, But Views Differ On Whether the Market Is Getting Too Bubbly

Home prices in the U.S. are continuing to rebound – in some cases, nearing their peak before the housing market’s collapse, and in other cases, exceeding their peak. The trending data are stoking anxiety among some market observers that the American housing and mortgage markets are either already in, or dangerously close to, bubble territory. For example, the latest Home Price Index from Black Knight Financial Services now stands at an average of $256,000, up 32.6 percent from the market’s bottom and just 1.1 percent away from a new national peak, based on June 2016 residential real estate transactions. That figure is up 5.3 percent from year-ago levels. Further, home prices in six of the nation’s 20 largest states in mortgage activity reached... Read More

Fair Housing Groups Accuse BofA of Continuing to Neglect Foreclosed Properties in Certain Communities

Fair housing groups continue to press allegations that Bank of America has neglected foreclosed homes and created eyesores in African-American and Latino communities in more than 200 cities. The National Fair Housing Alliance, along with nine local fair housing organizations, filed an amended federal complaint against BofA last week. In the complaint they added a number of neighborhoods in six additional cities where investigations revealed foreclosed homes that have not been properly maintained. This brings... Read More

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