Foreclosures | Mortgages | Financing
Confirming reports that began to emerge last week, JPMorgan Chase officially reached a settlement with the Department of Justice over allegations that the bank’s brokers charged higher interest rates to minority borrowers than white borrowers in the run-up and during the financial crisis. Initial reports pegged the settlement amount at $55 million, but the actual settlement amount is slightly lower, checking in at $53 million. …read more
From:: Real Estate Wire
Silicon Motion Technology Corp. shares fell in the extended session Monday after the flash memory component maker forecast revenue below Wall Street views. Silicon Motion shares declined 7.5% to $40.10 after hours. The company forecast revenue of $121 million to $128 million for the first quarter. Analysts surveyed by FactSet had estimated $135.2 million for the first quarter. For the fourth quarter, the company reported adjusted earnings of 95 cents a share on revenue of $144.2 million. Analysts had expected 90 cents a share on revenue of $141.9 million.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News
With the wound from its massive account scandal last year still fresh, four former Wells Fargo employees in the Los Angeles region say the account scandal was not the only way the bank deceived borrowers. The other area the bank misled borrowers: Improperly charging borrowers to extend their promised interest rate when their mortgage paperwork was delayed. …read more
From:: Real Estate Wire
The embattled Consumer Financial Protection Bureau, which top Congressional Democrats recently pledged to defend against potential attacks from the Trump administration, has more defenders in its corner now, as more than a dozen state attorneys general are joining the fight to protect the CFPB. …read more
From:: Real Estate Wire
HomeStreet Inc.’s residential servicing portfolio and mortgage staffing expanded. But quarterly home lending activity slipped and is likely to fall further.
HomeStreet earned $3 million before taxes during the final-three months of last year, plummeting from $43 million in the previous three-month period.
The Seattle-based organization revealed the numbers, in addition to other operational and financial metrics, in its fourth-quarter 2016 earnings report.
From:: Financing
New American Funding brought on a new divisional vice president to lead its expansion efforts in the Southeast. With over 16 years of experience, Kelly Allison brings a team of 91 mortgage professionals with her to her new role. …read more
From:: Real Estate Wire
Hewlett Packard Enterprise Co. has agreed to acquire Cloud Cruiser, the second startup HPE has agreed to purchase in less than a week. Cloud Cruiser — which was founded in 2010 and had raised roughly $20 million in venture financing, according to Crunchbase — helps companies track and control the use of public and private cloud computing. Last week, HPE announced the $650 million acquisition of SimpliVity, which focuses on hyperconverged infrastructure and rivals Nutanix Inc. The dual acquisitions show HPE’s focus on hybrid IT models that leverage on-premises and cloud computing power. “Cloud Cruiser’s consumption analytics offerings enable enterprises such as Accenture, KPN, and TD Bank to measure, analyze, optimize and control their usage and spend in private, public and hybrid cloud environments,” HPE executive Scott Weller wrote in a blog post announcing the acquisition. HPE did not disclose the price it paid for Cloud Cruiser nor provide a target date for closing the deal, though it said Cloud Cruiser co-founder and CEO David Zabrowski, a former HP executive, will remain with the company and report to Weller.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News
Shares of Mercury Systems Inc. jumped 7% late Monday after the aerospace and defense company beat revenue and earnings expectations for the fiscal second quarter. Mercury said it earned $5.2 million, or 13 cents a share, in the quarter, up from $5 million, or 15 cents a share, in the same quarter last year. Sales reached $98 million, compared with $60 million in the same quarter a year ago. Analysts polled by FactSet had expected Mercury to report earnings of 10 cents a share on sales of $93.2 million. The stock had ended the regular trading day up 1%, which compares with gains of 0.3% for the S&P 500 index.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News
The recent reduction in annual mortgage insurance premiums for Federal Housing Administration (FHA)-backed mortgages has been “suspended indefinitely,” the U.S. Department of Housing and Urban Development (HUD) announced in a mortgagee letter on Friday. The cut would have lowered premiums to 0.60 percent, saving FHA-insured borrowers with a closing date on or after Jan. 27, 2017 an average $500 this year.
“More analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts,” the HUD letter read.
HUD Secretary nominee Ben Carson suggested the Trump Administration would address the reduction during his confirmation hearing earlier this month, telling a Senate committee the Obama Administration did not consult the Trump Administration about the cut until just prior to its announcement.
“Certainly, if confirmed, I am going to work with the FHA administrator and other financial experts to really examine that policy,” Carson said at the hearing.
The suspension—one of the first acts by the Trump Administration—is a setback for the housing industry, which welcomed the reduction as an opportunity to extend homeownership to 1 million conventionally uncreditworthy homebuyers.
“According to our estimates, roughly 750,000 to 850,000 homebuyers will face higher costs and 30,000 to 40,000 new homebuyers will be left on the sidelines in 2017 without the cut,” says National Association of REALTORS® President William E. Brown. “We’re disappointed in the decision but will continue making the case to reinstate the cut in the months ahead.”
“We hope HUD and the Trump Administration will make it a priority to quickly review the reduction in the FHA mortgage insurance premium,” says Geoff McIntosh, president of the California Association of REALTORS®. “FHA’s single-family home portfolio is financially sound as it has ever been, and we hope that once the new administration has thoroughly reviewed the merits of the premium reduction, the suspension will immediately be lifted.”
“We recognize the Administration’s need to examine the overall health of the insurance program and weigh that against the benefits of lowering mortgage insurance premiums,” says David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA). “Given that lenders have already started preparing for the MIP decrease, it is important that any new policy be implemented in a way that minimizes disruption for borrowers and lenders. MBA looks forward to working with the new administration to ensure the long-term stability of the FHA program, creating an environment that provides clarity in regulations for lenders while at the same time promoting access to credit and protecting consumers.”
Suzanne De Vita is RISMedia’s online news editor. Contact her with your real estate news ideas at sdevita@rismedia.com.
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From:: Finance and Economy
Shares of Yahoo Inc. rose nearly 2% late Monday after the internet company reported fourth-quarter adjusted earnings and sales above expectations. Yahoo also said the sale of its core business to Verizon is now expected to close in the second quarter instead of in the first quarter “given work required to meet closing conditions,” it said in a statement. Yahoo said it earned $162 million in the quarter, or 17 cents a share, versus a loss of $4.43 billion, or $4.70 a share, in the year-ago quarter. Adjusted for one-time items, Yahoo earned 25 cents a share in the quarter, up from 13 cents a share a year ago. Revenue reached $1.47 billion, up from $1.27 billion a year ago. Analysts polled by FactSet had expected the company to report adjusted earnings of 21 cents a share on sales of $907 million in the quarter. Shares ended the regular trading day up 0.8%, which compares with a loss of 0.3% for the S&P 500 index.
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From:: Stock Market News