National Mortgage News - June/July/August 2022

The Great Reshuffling

Cuts on one side of the business are creating a ready-made, knowledgeable pool of workers for servicers as demands on the latter's operations are increasing.

Direct-to-consumer may not fare as well going forward if a purchase market prevails, and some cross-pollination between depositories and nonbanks could occur.

While compliance specialists will be in demand, loan producers will see their roles change to encompass responsibilities that include more marketing and client development.

First quarter gain-on-sale at nine originators tracked by Keefe, Bruyette & Woods averaged 149 basis points, much higher than the 5 bps recorded for independent mortgage bankers tracked by the MBA.

Mortgage companies selling loans to the government-sponsored enterprise will be able to use the information for one type of employment check as well as to validate income and assets.

Dynex Capital CEO Byron Boston sees the slow process of unwinding the Fed’s balance sheet, which officially began Wednesday, as an opportunity for his company.

New changes do more to pave the way for electronic modifications and will open the government bond insurer’s program up to new applicants.

The National Flood Insurance Program has been without a long-term reauthorization for five years, and it seems poised to stay that way after its first congressional hearing since 2019. 

Investors could gravitate to a company willing to invest in itself in a challenging market , but share repurchases have downsides.

Non-depositories historically haven't been big originators of home equity lines of credit, but fintechs that offer the easily automated countercyclical products are reporting growth.

Companies are working to offer what they say are faster, more integrated digital products that can quickly stand up compliant workflows as forbearance is phased out and loss mitigation activity resumes.

In a 5-4 Supreme Court decision two years ago, the bureau’s rulemakings survived intact. But a pair of pending cases that challenge the agency's funding through the Federal Reserve are again seeking to invalidate every action the CFPB has taken since 2010.

At the Mortgage Bankers Association Secondary Conference this week, issuers noted their concern about rising delinquency levels, accusations of racial bias in lending, and whether regulators in Albany and Washington are preparing a new campaign against “abuses” in mortgage servicing, the chairman of Whalen Global Advisors writes.