Tag: finance

The Supreme Court has denied a request by speculative investors in the government-sponsored enterprises to reconsider a case against the government. The decision could open the door to an initial public offering.

At issue are Senior Preferred Stock Purchase Agreements put in place with the Department of the Treasury when Fannie Mae and Freddie Mac were thrust into conservatorship in 2008.

An August 2012 amendment made to the PSPAs required that Fannie and Freddie pay a variable dividend to the Treasury based on the amount that their net worth exceeded the required capital buffer.

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From:: Financing

Increased utilization of alternative real estate valuations could have a negative impact on the quality of residential mortgage-backed securities. But there are some positives to the shift.

In an effort to cut operational costs, increase efficiencies and address the declining number of real estate appraisers, home lenders are expected to use more appraisal alternatives.

The alternatives include hybrid appraisals, broker price opinions and automation valuation models. Each method presents different strengths and challenges.

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From:: Financing

First mortgage serious delinquency moved higher last month. Recently rising interest rates on residential loans have not yet impaired consumers’ ability to qualify for new mortgages.

Ninety-day delinquency on consumer credit was 0.95 percent as of Jan. 31, according to the Composite Consumer Credit Default Index. The rate deteriorated 4 basis points from one month previous.

Serious delinquency has ascended 3 BPS from the same date last year based on the index, a reflection of the performance on car loans, bank cards and first and second mortgages.

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From:: Financing

The former chairman of President Donald J. Trump’s presidential campaign has been accused of mortgage fraud.

Allegations of mortgage fraud have been made by Special Counsel Robert Mueller in response to a request for Manafort to post bail using a Virginia property as collateral.

Manafort provided the bank on the loan with fraudulent profit-and-loss statements and overstated income by millions of dollars, Mueller said.

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From:: Financing

Employees of USA Mortgage have become the owners of the company, though the current owner will stay on as chief executive officer.

The St. Louis-based company, which is a division of DAS Acquisition Company LLC, issued a statement about the transfer of ownership.

USA’s ownership was transferred through an Employee Stock Ownership Plan following the the completion of an independent valuation late last year.

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From:: Financing

Several dozen employees are being laid off at Movement Mortgage LLC. The staffing reduction comes even as the lender plans further hirings.

Around 75 positions at its main office in Indian Land, South Carolina, and other locations across the country are being eliminated.

The job cuts involve people in operations and are tied to how it handles loans processed for people who have not yet selected a property.

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From:: Financing

Several dozen employees are being laid off at Movement Mortgage LLC. The staffing reduction comes even as the lender plans further hirings.

Around 75 positions at its main office in Indian Land, South Carolina, and other locations across the country are being eliminated.

The job cuts involve people in operations and are tied to how it handles loans processed for people who have not yet selected a property.

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…read more

From:: Financing

Guilty pleas have been given by two of three former top executives of defunct mortgage banking firm who are accused of defrauding warehouse lenders on nearly $9 million in draws.

In August 2017, former Vanguard Funding LLC executives Matthew T. Voss, Edward J. Sypher Jr., and Edward E. Bohm were arrested and arraigned.

Voss, 42, was chief operating officer of the Long Island, New York-based firm from August 2016 through March 2017. He was also a majority owner of the company.

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From:: Financing

Home lending volume turned lower in the final quarter of last year at Hilltop Holdings Inc., and a more sharp decline is likely ahead. Overall earnings increased, but mortgage income fell.

In its fourth-quarter 2017 earnings report, the Dallas-based bank-holding company revealed that it earned $65 million before income taxes during the three months ended Dec. 31, 2017.

Income improved from $53 million during the same three months of 2016. Earnings also increased form the third-quarter 2017, when the total was $48 million.

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From:: Financing

The expected volume of residential loan originations has been cut by $56 billion for this year and next year. Last year’s refinance estimate, meanwhile, has been boosted.

From Jan. 1, 2018, through the end of March, $369 billion in mortgages, including loans to finance a home purchase and refinances, are expected to be closed.

Business is projected to climb to $467 billion in the second quarter before falling to $447 billion during the following three-month period.

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From:: Financing