Foreclosures | Mortgages | Financing
An alarming number of loans with high debt-to-income ratios have Mortgage Guaranty Insurance Corp. tightening its DTI and credit requirements.
The Milwaukee-based organization has revealed that it has seen an increase in residential loans which have DTI ratios that exceed 45 percent.
The recent phenomenon has the mortgage insurance company concerned — especially in cases where the higher ratios are combined with weaker credit profiles.
From:: Financing
Several orders issued six years ago over servicing and foreclosure abuses have been terminated, while new civil penalties have been issued.
On Friday, the Federal Reserve Board announced the termination of mortgage servicing enforcement actions against 10 banking organizations.
The actions were taken in 2011 and 2012 as a result of deficiencies in their handling of residential loan servicing and foreclosure processing.
From:: Financing
Following months of waiting, mortgage brokers can now add PennyMac Financial Services Inc. to their roster of wholesalers. With its entry, the fast-growing lender is poised to become a big player in the wholesale channel.
Back in August 2017, the Westlake Village, California-based company revealed plans to launch a broker channel in the fourth quarter of last year.
PennyMac explained that broker margins are higher than margins in the correspondent channel — which accounted for 91 percent of its total 2016 mortgage originations.
From:: Financing
Mortgage income was down at JPMorgan Chase & Co., which doesn’t expect much impact from the new tax law. Home lending and servicing declined.
Prior to income tax expense, the New York-based organization earned $8.3 billion during the three months ended Dec. 31, not as much as $8.7 billion the same quarter in 2016.
Those details, as well as other financial and operational metrics, were covered in Chase’s fourth-quarter 2017 earnings report released on Friday.
From:: Financing
Despite a surge in refinance share, quarterly and annual mortgage originations at Wells Fargo & Co. were lower, and a further decline is likely. Earnings also deteriorated.
In its fourth-quarter earnings report Friday, the San Francisco-based financial institution disclosed $4.6 billion in income before income tax expense.
Earnings were reduced from $6.8 billion in the preceding quarter and were also worse than $7.6 billion in the final quarter of the preceding year.
From:: Financing
Weekly rates on single-family loans moved higher, and it was a similar story for monthly rates. Forecasts call for further ascension in the upcoming week and year.
On conforming fixed-rate loans to finance a home purchase, LendingTree said its network of lenders offered annual percentage rates that averaged 4.42 percent in December 2017.
In addition to increasing 12 basis points from the preceding month, average 30-year fixed-rate APRs climbed to the highest level since July 2016.
From:: Financing
The U.S. mortgage banking subsidiary of The Toronto-Dominion Bank has hired a seasoned executive with nearly three decades in financial services to run the unit.
A news release Wednesday from TD Bank indicated that Rick Bechtel has been appointed executive vice president, head of U.S. mortgage banking.
Bechtel, who joined the Cherry Hill, New Jersey-based organization in October, reportedly has more than 27 years of banking and management experience.
From:: Financing
Alternatives to the current long-term process of paying down a mortgage include one proposed by a pair of economists at the Federal Reserve Board.
Fed economists Wayne Passmore and Alexander H. von Haften discussed their alternative approach in a working paper titled Financing Affordable and Sustainable Homeownership With Fixed-COFI Mortgages.
Their central idea for encouraging more rapid equity growth is to trade off the borrower’s right to refinance when interest rates fall, which imposes a heavy cost on lenders, for larger principal payments.
From:: Financing
The latest rankings of best employers are in, and five mortgage organizations made the cut. Also among firms recognized was a compliance service provider and a trade group.
PrimeLending said it made the 2017 Best Workplaces for Diversity and Best Workplaces for Parents lists from Fortune and Great Place to Work.
Dallas-based PrimeLending, which is a subsidiary of Hilltop Holdings Inc., last reported its headcount at 2,800 employees as of year-end 2015.
From:: Financing
Freddie Mac has agreed to settle with a woman who was deceived by a fraudulent landlord on a real-estate-owned asset owned by the secondary lender.
A man who identified himself as Tim Jacobs of Experience Management falsely claimed that he was the landlord of a Milwaukee property owned by Freddie.
He took $2,000 from Alishia Evans, who quickly moved into the three-bedroom home with her two daughters and her fiancé. She was pregnant with twins.
From:: Financing