Foreclosures | Mortgages | Financing
The evolution from a refinance to a purchase market has raised the risk of defects. Government-insured mortgages are more at risk than conventional loans.
In the first quarter of this year, mortgage originations had a critical defect rate of 1.61 percent. The rate reflects loans with at least one defect.
Defects are defined as a defect that would result in a residential loan being ineligible for sale to Fannie Mae.
From:: Financing
As demand has diminished for refinanced single-family loans, credit standards on mortgages — especially government-sponsored enterprise loans — have loosened.
Compared to three months ago, half of senior mortgage executives have experienced increased demand for purchase financing that is eligible for purchase by Fannie Mae or Freddie Mac.
At the same time, 16 percent of executives indicated that demand for GSE programs used to finance a home purchase has diminished over the preceding three months.
From:: Financing
Realtors and home builders who have homebuyers with loans pending at Caliber Home Loans Inc. will now have access to details about their pipelines.
The Coppell, Texas-based mortgage banking firm on Monday issued an announcement indicating that it has launched MyPipelineConnect.
The proprietary web portal reportedly provides real estate agents and home builders with comprehensive details about their customers’ financing process.
From:: Financing
As more data emerges confirming the continued adoption of mobile technology in financial services, home lenders and service providers are capitalizing on the trend.
A survey conducted on behalf of the American Bankers Association indicated that more than a quarter of consumers use their mobile devices most often to conduct their banking business.
For users between 18 and 29 years old, 46 percent use mobile banking the most. The higher usage reflects millennials who have largely grown up constantly using a smartphone.
From:: Financing
Driven by refinance transactions, new mortgage activity retreated this past week. While adjustable-rate business was down the most, the category had the biggest year-over-year gain.
A predictor of upcoming single-family loan originations, the U.S. Mortgage Market Index from Mortgage Daily, was 139 during the seven-day period ended Sept. 22.
The index, which is determined based on average per-user rate-lock volume by clients of OpenClose, declined 3 percent from the previous week. No seasonal adjustments were made.
From:: Financing
The 9th Circuit Court of Appeals has barred claims due to the borrower’s failure to amend include the claims in their bankruptcy schedules.
On Aug. 29, the 9th Circuit provided foreclosing parties some well-needed protection from borrower lawsuits in Meyer v. Northwest Trustee Services. While the Meyer decision is unpublished and involved a foreclosure trustee, the rationale behind the ruling should apply to future litigation against trustees, servicers and investors in the 9th Circuit of the Federal Courts, which includes Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington.
In its decision, the Ninth Circuit declined to review the borrower’s claims but instead determined that the borrowers were barred from bringing the claims against Northwest Trustee Services Inc. under the doctrine of judicial estoppel. The ruling sends the message to borrowers that, as soon as they learn of a potential claim during their bankruptcy, they must amend their schedules or disclosure statements to include the claim as an asset. If they don’t, their subsequent claims could be barred by the doctrine of judicial estoppel.
From:: Financing
Aggressive growth through a string of acquisitions might have been a big factor in the data breach disclosed last month by Equifax Corp.
After former General Electric executive Richard Smith became Equifax’s chief executive officer in 2005, he quickly embarked on a plan to rev up growth.
This included 14 acquisitions that have been completed since 2009 — including that of employment data provider Talx Corp. in 2007.
From:: Financing
Bank of America Corp. has reached a settlement with a California couple in a wrongful foreclosure action for far less than a massive judgment imposed earlier this year.
Back in March, a bankruptcy judge ordered the Charlotte, North Carolina-based organization to pay a $46 million judgment for a wrongful foreclosure.
BofA reportedly told the borrowers in 2009 to default on their mortgage so that they could get a loan modification. But after the borrowers defaulted, the bank foreclosed on the property.
From:: Financing
After nearly two months without an increase, mortgage rates moved higher this past week. Rates on home loans for veterans remain the lowest.
On single-family mortgages that were closed during the month of August, thirty-year note rates averaged 4.27 percent.
The average rose 2 basis points from the preceding month. Compared to the same month a year ago, the average has ascended 50 BPS.
From:: Financing
Finance of America Mortgage revealed a new unit that will target small financial institutions. Included in the offering are correspondent acquisitions.
As part of the Mortgage Daily Mortgage Origination Survey, the lender reported that it closed nearly $8 billion in single-family loans during the first half of this year.
But all of the Horsham, Pennsylvania-based mortgage banking firm’s loan production was generated through the retail and wholesale lending channels.
From:: Financing