Firms Report Record Mortgage Originations

Several home-lending businesses recently disclosed residential loan production data, and all-time records were reached by some of the organizations.

Last year, state-licensed mortgage loan originators generated approximately $1.060 trillion is residential loan production. Volume climbed by a fifth from 2015.

The 2016 total included around $520 billion in purchase financing production. Originators boosted purchase-money lending by 15 percent from the prior year.


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From:: Financing

Purchase Financing Leads Mortgage Biz Lower

New mortgage activity was depressed over the past week, and it was purchase-money business that was out front of the decline. Adjustable-rate activity, though, ascended.

As of the week ended March 31, the Mortgage Daily U.S. Mortgage Market Index was 148. The index is a measure of average per-user rate locks by clients of OpenClose.

Compared to the previous week, the index, an indication of upcoming originations, tumbled 12 percent. There are no adjustments made to the MMI for seasonal variations.


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From:: Financing

Banc of California Completes Sale of Mortgage Unit

The planned sale of the residential lending unit owned by Banc of California Inc. has been signed, sealed and delivered.

Earlier this month, the Irvine, California-based company disclosed in a Securities and Exchange filing a deal to sell the unit.

The agreement called for Banc of California to receive $27.7 million in cash plus $5 million based on loan officer retention.


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From:: Financing

CMBS Delinquency Up 3 Consecutive Months

For the third month in a row, the performance of securitized commercial real estate loans has deteriorated, with office loans leading the way.

The 30-day delinquency rate on loans that are included in commercial mortgage-backed securities concluded February 2017 at 3.04 percent.

That was 3 basis points worse than at the end of the previous month. Compared to the same point last year, the rate has risen 28 BPS.


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From:: Financing

Fannie Biz Sinks, New Post-Crisis Low for Lates

Secondary activity at the Federal National Mortgage Association plunged to the lowest level in a year. Delinquency, meanwhile, reached another post-crisis low.

The Washington-based organization reported in its monthly summary for last month a total book of business of $3.1522 trillion as of Feb. 28, 2017.

An increase was recorded from one month earlier, when the total was $3.1502 trillion, and from one year earlier, when the book stood at $3.0980 trillion.


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From:: Financing

Mortgage Rates Sink, Might Hold

A nice improvement was recorded for weekly mortgage rates, and not much movement is likely for rates over the next seven days.

On conventional loans up to $424,100 used to finance a home purchase, 30-year fixed rates averaged 4.41 percent in February.

The report, from the Federal Housing Finance Agency, said long-term conforming rates rose 4 basis points from the prior month.


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From:: Financing

Huge Management Shakeup at PHH, CEO Leaving

The departure of PHH Corp.’s chief executive officer of five years is among several management changes disclosed as the company cuts costs.

Glen Messina was promoted in 2012 from chief operating officer to president and CEO of the Mount Laurel, New Jersey-based organization.

Messina had been with the company since July 2011 and has overseen PHH’s transformation from a multi-business organization to a mortgage-only business.


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From:: Financing

Banks’ Non-QM Share Drops as 3rd Party Share Up

Loans that didn’t meet Qualified Mortgage requirements accounted for a much smaller share of bank originations last year. But third-party and first-time homebuyer share widened.

Banks originated 81 percent of their residential loan production through the retail channel during 2016. Retail share was more narrow than 83 percent the prior year.

Wholesale-correspondent lending share widened to 11 percent last year from just 7 percent in 2015. The Internet origination channel share slipped to 6 percent from 7 percent.


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From:: Financing

Midwest Leads Surge in Pending Home Sales

Last month, the volume of homes under contract soared to the second-highest level in more than a decade, and the Midwest was out front.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, was a seasonally adjusted 112.3 in February.

That was the highest index since April 2016, when it was 113.6, and the second-highest level since February 2006, when it was 117.4.


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From:: Financing

FHA Originations Rise, Could Climb Further

Monthly endorsements increased at the Federal Housing Administration and are poised for a further rise. Delinquency, meanwhile, moved lower.

In January, FHA endorsed 119,126 residential loans for $24.412 billion, according to an analysis of Department of Housing and Urban Development data.

The total included $22.992 billion in single-family loans, $1.415 billion in home-equity conversion mortgages and $0.005 billion in Title I loans.


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From:: Financing