Mortgage company stocks should react positively to a rate cut by the Federal Reserve, but it will be short-lived because rising credit costs and a "tougher origination environment" will be drag on earnings, according to a Friedman Billings Ramsey report."It will be tough going for mortgage banking companies for the next 12 to 24 months," FBR analyst Paul Miller Jr. says in the Sept. 14 report. And it will be a particularly tough adjustment for companies that generated most of their earnings from gain-on-sale income or hold a large percentage of nonagency products in their portfolios. But banks and thrifts that took a cautious approach to credit risk should benefit from the current environment, according to the FBR analyst. "Additionally, a Fed rate cut should help improve margins as funding costs move lower," Mr. Miller said. The Federal Open Market Committee meets Sept. 18 to consider a cut in the Fed Funds rate.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
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