|
|
|
|
|
|
Complete list of specialty news sections
Get the full and complete versions of these stories at MortgageDaily.com
Reach mortgage executives, loan originators and other people tied to mortgage
industry.
Free mortgage news for prospective borrowers.
Free e-mail newsletter with the latest headlines from MortgageDaily.com.
Condensed MortgageDaily.com stories free on your Web site or for your
RSS reader.
Archive of MortgageChronicle.com stories by month.
Data and statistics for real estate finance.
Directories of lenders, branch operators and mortgage service providers.
Directories of lenders, branch operators and mortgage service providers. |
|
|
|
|
|
|
Mortgage Broker Stories from
MortgageDaily.com |
|
|
Mortgage Industry News Headlines
|
Last Updated Thursday, May 17, 2012
05:49 PM CST
|
|
Record Mortgage Rates Poised for Another New Low
The good news is that fixed mortgage rates fell to the lowest levels on record and are already on their way to setting another new low -- with a sub-3 percent rate in site for the 15-year mortgage. The bad news is that the stock market is on its way to the lowest point this year. There were no records set, however, for adjustable-rate products.
At 3.79 percent, the fixed-rate 30-year mortgage averaged less than at any other time since Freddie Mac started tracking rates in 1971.
The 30 year was 3.83 percent in Freddie's Primary Mortgage Market Survey for the week ended May 10 and 4.61 percent a year earlier.
Record Low for 10-Year Treasury Yield
Thanks to the sovereign debt crisis in Europe, the yield on the benchmark 10-year Treasury note fell to the lowest level on record.
The 10-year yield closed at 1.70 percent Thursday, according to data from the Department of the Treasury. The yield sank 6 basis points from Wednesday.
It was the lowest level on record based ever recorded based on historical data from the Federal Reserve Board back to 1962.
Opposing Views on Principal Reduction
The various programs and proposals to reduce the principal loan balance on mortgages to deeply underwater borrowers would improve the equity position of some homeowners while leaving other seemingly similar borrowers with negative equity.
On the one hand, some argue, borrowers who haven't made their payments on time would benefit with a lower loan balance, while consumers who have struggled to maintain their mortgage payments would be left out in the cold. Such a moral hazard would incentivize homeowners to default on their loans in order to qualify for principal reduction.
On the other hand, advocates for writing down loan balances claim that it would help heal the housing market and boost the economy.
Program Promises Lowest Wholesale Rates in Industry
A growing wholesale mortgage lender has launched a new program for mortgage brokers that, it claims, has the lowest conventional pricing in the industry. But the offering is limited to larger loans and high-quality borrowers.
In order to quality for the low-rate program, borrowers need a minimum FICO score of 760.
In addition, the maximum loan-to-value ratio is capped out at 70 percent.
Origination Outlook Improved Considerably from Last Year
The forecast for 2012 residential loan originations by all U.S. lenders has been raised each month since October, and this month was no exception. This year's mortgage outlook now stands nearly $350 billion higher than it did seven months ago, and if the trend continues -- annual activity could exceed last year's production.
Second-quarter originations are projected to come in at $361 billion, off from $384 billion during the first-three months of 2012. Last month's outlook had fundings falling to $349 billion from the first quarter's $375 billion.
The improvement was primarily with refinances, which are expected to total $227 billion this quarter versus first-quarter refinance volume of $291 billion. The previous forecast was for refinance production to fall to $214 billion from $286 billion.
Foreclosures Fall to Lowest Level in Over 4 Years
The number of new foreclosure filings fell below 200,000 for only the second time in more than four years. California was responsible for more than half of the latest improvement. Meanwhile, Boston saw a major increase in new filings.
Residential loan servicers filed foreclosure notices on 188,780 properties during April. Filings include default notices, scheduled auctions and repossessions.
The last time foreclosures were this low was in July 2007, when 179,599 U.S. properties were hit with a filing.
BofA Goes National With Short Sale Payouts
After testing a program that pays delinquent borrowers to help unload their properties through a short sale, Bank of America Corp. is now expanding the program.
The pilot program tested last year by BofA in Florida offered borrowers up to $20,000 to sell their home in a short sale. Nearly 11,000 borrowers took the bank up on its offer, and several hundred have closed so far.
Now BofA is taking the program national, though sand states are expected to see the most participation. Maximum payouts have been increased.
Subprime Foreclosures Improve Despite Rise in Overall Rate
Past-due payments on home loans have fallen for three consecutive quarters, though performance on mortgages to veterans deteriorated. But the rate of foreclosures was higher despite an improvement in subprime foreclosures.
Residential delinquency of at least 30 days was 11.79 percent as of the first quarter.
The rate fell from 11.96 percent in the fourth quarter. Delinquency has been lower each quarter since the second-quarter 2011, when the rate was 12.87 percent.
Residential Issuance Drives Up Ginnie Activity
Thanks to strong residential activity, securitizations at the Government National Mortgage Association soared last month. Even multifamily issuance was stronger. But reverse mortgage volume was lower.
Mortgage-backed securities guaranteed by Ginnie Mae during April leapt 25 percent from March, according to monthly data.
Securitizations were 38 percent stronger than in April 2011 at the Washington, D.C.-based company.
Small Wholesaler Seeing Big Results from HARP 2.0
New business at a small Texas-based wholesale lender that operates in more than two dozen states has exploded since it began accepting applications for mortgages processed under the Home Affordable Refinance Program. Originations are so strong that the company is recruiting more employees to help it keep up with demand.
The program was originally launched in March 2009, though participation was far lower than originally projected. So HARP guidelines were eased in October 2011 with the elimination of requirements for loan-to-value limits, mandatory appraisals and representations and warranties.
But nearly half of banks surveyed by the Federal Reserve for the April 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices indicated very little participation in HARP 2.0. Among the obstacles to utilizing the program are repurchase risk, difficulty in transferring private mortgage insurance coverage and the reconciliation of junior liens. |
|
This mortgage news summary reprinted with permission of
|
 |
|
For the entire text of any of these stories please visit
|
|
Copyright © 2012 MortgageDaily.com
|
|
|
Program Promises Lowest Wholesale Rates in Industry
May 17, 2012
A growing wholesale mortgage lender has launched a new program for mortgage brokers that, it claims, has the lowest conventional pricing in the industry. But the offering is limited to larger loans and high-quality borrowers.
In order to quality for the low-rate program, borrowers need a minimum FICO score of 760.
In addition, the maximum loan-to-value ratio is capped out at 70 percent.
<MortgageDaily.com subscribers read full story>
|
Option ARM Judgment Against Mortgage Broker
May 11, 2012
A Maryland borrower who lost his house to foreclosure sued his mortgage broker over allegations he wasn't aware of the terms of his payment-option adjustable-rate mortgage. A jury has awarded the borrower more than $300,000.
Dennis Hollidayoke claims that he was lured into refinancing two times by Brian Lynn Blonder of JBL Mortgage Network through a program that would invest his home equity and make his payments. But he allegedly wasn't told about the negative-amortization feature of the loan.
Hollidayoke's attorney claims that the closing documents didn't make the option-ARM terms clear.
<MortgageDaily.com subscribers read full story>
|
CFPB Considering Huge Change to L.O. Commissions
May 10, 2012
The traditional calculation for commissions earned by loan originators will disappear if the Consumer Financial Protection Bureau has its way. Also on the table are discount points.
Originators have typically been paid based on a percentage of the loan amount. But the regulator sees no difference in the amount of work required to close loans based only on loan size.
So the CFPB is considering a requirement that originators charge a flat fee regardless of the loan amount.
<MortgageDaily.com subscribers read full story>
|
Brokers Call for Support on QRM Legislation
April 23, 2012
The head of the trade group that represents mortgage brokers is calling on the sector to support legislation that would leave more income available for loan originators.
The call to action came from John Hudson, who is chair of government affairs at NAMB, The Association of Mortgage Professionals.
At issue is H.R. 4323, the Consumer Mortgage Choice Act, which would impact the definition of a qualified residential mortgage under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
<MortgageDaily.com subscribers read full story>
|
Cordray Addresses Mortgage Brokers
Apr. 9, 2012
The man in charge at the federal regulator that oversees consumer financial transactions, including mortgages, participated in a webinar with mortgage brokers. He talked about the loan originator rule, integrated disclosures and licensing disparities between mortgage brokers and mortgage bankers. A rule that covers some of the concerns discussed, including appraisal issues, is expected to be finalized early next year.
Richard Cordray, director of the Consumer Financial Protection Bureau, participated in a webinar hosted by NAMB, the Association of Mortgage Professionals.
Cordray sees a resurgence in mortgage brokering.
<MortgageDaily.com subscribers read full story>
|
|
|
|
|
