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CFPB Approves Redesigned Mortgage Application

A redesigned mortgage application first unveiled last year by the government-sponsored enterprises has received a safe-harbor blessing from the Consumer Financial Protection Bureau.

In August 2016, Fannie Mae and Freddie Mac revealed a redesigned Uniform Residential Loan Application. It was the first time in more than two decades that the form was redesigned.

On Friday, Fannie and Freddie, under the conservatorship of the Federal Housing Finance Agency, issued an update to the application that included an additional question about an applicant’s language preference.


Source: Mortgage Daily

Mortgage Industry Relies on Amicus Briefs

An amicus brief is (generally) an appellate brief filed on behalf of an entity or group that is not a party to the appeal, but whose interest will be significantly affected by the court’s decision.

Amicus efforts on behalf of the mortgage industry are an absolute necessity to abate or avoid the potential impact of a negative decision in the mortgage lending or servicing space.

Although it is certainly true that the named servicer or lender has the strongest incentive to aggressively address the potentially troublesome issues in the appeal, having the support of an amicus brief can provide the named party (and the entire mortgage industry) with several often crucial benefits, among which are the following:


Source: Mortgage Daily

Low Credit Scores Cost Borrowers 59 BPS

Home buyers who financed the purchase of their house and had high credit scores saw rates that were 59 basis points better than their poor-credit counterparts. Loan amounts fell with credit scores.

Borrowers on loans used to purchase single-family properties who have a credit score of at least 760 had an average annual percentage rate of 4.18 percent during October.

But for borrowers whose scores ranged between 620 and 639, the average APR was 4.77 percent. In the midrange — scores between 680 and 719 — APRs averaged 4.44 percent.


Source: Mortgage Daily

2018 Mortgage Origination Forecast Increased

The forecast for mortgage originations for next year has been modestly raised. Meanwhile, this year’s refinance outlook grew at the expense of projected home purchase financing.

From Oct. 1 through year-end, American mortgage firms are expected to originate $428 billion in loans. Business it then expected to sink to $330 billion in the first-three months of next year.

But a strong recovery is expected for the second quarter of 2018, when residential loan production is projected to shoot up to $490 billion.


Source: Mortgage Daily

Who Are Best Mortgage Employers?

Within the real estate finance industry, some companies have earned the distinction of being the best employers among other similarly sized firms in their cities based on worker surveys. Others were recognized on a national basis.

Among the surveys was one conducted by the Chicago Tribune, which ranked Guaranteed Rate among the 10 top large employer workplaces in the Chicago area, a Nov. 10 statement said. It was the lender’s second year in a row on the top-10 ranking and seventh time on the list.

Guaranteed Rate, which maintains its headquarters in Chicago, reportedly provides a nurse practitioner and an in-house cafe on site for its 3,400 employees. It also provides a fitness center with yoga classes and complimentary massages.


Source: Mortgage Daily

Purchases Pull Down Weekly Mortgage Business

Home purchase financing activity tumbled during the week that included Veterans Day, dragging down overall business. But cashout refinance activity was the strongest it’s been in over four years.

The U.S. Mortgage Market Index from Mortgage Daily, a reflection of average per-user rate-lock volume at OpenClose, was 150 in the week ended Nov. 17.

Compared to the prior seven-day period, the index, an indication of upcoming originations that is not adjusted for seasonal factors, moved down nearly 8 percent.


Source: Mortgage Daily

Permits, Completed Construction Up on Multifamily

A month-over-month rise in permit activity and a burst in completed construction was driven by increased apartment activity. Home builders broke ground on more homes.

U.S. housing units authorized by permit-issuing places came to 112,100 units in October, bringing year-to-date volume to 1,067,200 through the end of last month.

The Census Bureau and the Department of Housing and Urban Development jointly released the new construction report Friday.


Source: Mortgage Daily

Consumer Chief Fired by Wells Fargo

Wells Fargo & Co. has fired its head of consumer lending over communication he had with a former employee. The interaction didn’t involve recent scandals at the bank.

Franklin Codel was named head of Wells Fargo Home Lending in August 2015. A little more than a year later, he took over all of consumer lending as senior executive vice president.

Codel first came on board at Wells Fargo in 2004. In addition, he previously spent eight years at predecessor Norwest Mortgage.


Source: Mortgage Daily

Mortgage Delinquency Soars, Hurricanes Blamed

The quarterly non-current mortgage rate surged 58 basis points, with government-insured performance taking the biggest beating. Much of the blame was ascribed to the effects from the recent hurricanes.

Single-family loans that were at least 30 days late or in the foreclosure inventory accounted for 6.11 percent of all outstanding mortgages as of Sept. 30.

That was worse than as of mid-2017, when the non-current rate was 5.53 percent. The rate also deteriorated from the same date last year, when it landed at 6.07 percent.


Source: Mortgage Daily

Mortgage Rates Worsen, Further Rise Forecasted

While interest rates on residential loans improved last month, more recently they have ascended to the highest level in four months. The forecast is for further escalation.

Thirty-year note rates on single-family loans closed during October averaged 4.20 percent. The average improved a basis point from the previous month.

But there has been substantial deterioration in long-term mortgage rates compared to a year prior, when the average was 3.76 percent.


Source: Mortgage Daily

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