Tag Archive: finance

Fed Economists Suggest Rapid Mortgage Paydown Plan

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.


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From:: Financing

5 Mortgage Firms Recognized Among Best Employers

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.


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From:: Financing

Freddie Mac Settles With Evicted REO Tenant

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.


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From:: Financing

Home Equity Business Grows at CA Credit Unions

Despite a tumble in first-mortgage production at California’s credit unions, outstandings grew. Home-equity production and outstandings, however, jumped.

As of Sept. 30, there were 318 credit unions that maintained their headquarters in California. The group served more than 11.4 million members.

Golden State credit unions originated $8.8 billion in first mortgages during the nine months that concluded on Sept. 30.


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From:: Financing

New Years Surge in Mortgage Applications

Prospective borrowers completed more mortgage applications in the week that included New Year’s than in the week that included Christmas. Refinances drove the gain.

A seasonally adjusted 8 percent increase from the previous seven-day period was recorded for the Market Composite Index for the week ended Jan. 5.

The index, which is a measure of retail single-family loan applications, soared 46 percent from the preceding week when seasonal factors are disregarded.


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From:: Financing

Subprime Share Up as Mortgage Originations Fall

Although the volume of mortgages closed has fallen, the share that are considered subprime has inched higher. Home-equity originations have strengthened.

From Jan. 1, 2017, through Aug. 31, U.S. home lenders originated 4.85 million first mortgages that had an aggregate balance of $1.1749 trillion.

Based on the number of loans, originations were down 9.9 percent from the same seven-month period in 2016. The dollar volume of production retreated 10.8 percent.


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From:: Financing

Subprime Share Up as Mortgage Originations Fall

Although the volume of mortgages closed has fallen, the share that are considered subprime has inched higher. Home-equity originations have strengthened.

From Jan. 1, 2017, through Aug. 31, U.S. home lenders originated 4.85 million first mortgages that had an aggregate balance of $1.1749 trillion.

Based on the number of loans, originations were down 9.9 percent from the same seven-month period in 2016. The dollar volume of production retreated 10.8 percent.


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From:: Financing

Mortgage Delinquency Up, Foreclosure Rate Holds

Although overall mortgage delinquency moved higher, early stage delinquency retreated, while serious mortgage delinquency and the foreclosure rate held steady.

Delinquency of at least 30 days on single-family loans, including loans in the foreclosure inventory, represented 5.1 percent of all mortgages as of Oct. 31, 2017.

The non-current rate was elevated versus the preceding month, when it was previously reported at 5.0 percent. But an improvement was recorded from 5.2 percent a year prior.


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From:: Financing

Mortgage Credit Tightens to 5-Month Low

After easing to the loosest levels since the financial crisis, credit conditions in real estate finance contracted to the tightest level in five months. Government programs constricted most.

That was according to the Mortgage Credit Availability Index, a standardized quantitative index focused on mortgage credit, which was 179.2 in December.

Last month’s index level was the lowest since July, when it was previously reported at 179.0. A drop in the MCAI indicates that lending standards are tightening.


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From:: Financing

The Money Source Expanding Staffing, Servicing

A complete makeover planned at The Money Source Inc. will be accompanied by substantial expansion of its staffing and mortgage servicing portfolio.

The Melville, New York-based mortgage banking firm revealed in an announcement Tuesday that it is re-branding as TMS.

A marketing campaign will be launched for its retail, wholesale and correspondent channels that will tap into the emotional aspects of home financing.


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From:: Financing