Meanwhile, Washington Mutual chairman and chief executive Kerry Killinger says the federal guidance on nontraditional mortgages will have a "limited" effect on its payment-option ARM lending program, but he wants to see a level playing field with regard to federal- and state-regulated entities."For the guidance to be truly effective in safeguarding consumers, we do believe all mortgage lenders should be held to the same standards," the CEO told investors and analysts during a conference call on the company's third-quarter results [see previous item]. State regulators are expected to issue similar guidance in a couple of weeks. "We continue to evaluate the guidance," Mr. Killinger said. "However, based on preliminary analysis and initial discussions with our regulator, the Office of Thrift Supervision, while we expect some changes, the impact on the origination of the option ARM products in our Home Loans group appears limited." The giant thrift originated $37.2 billion of home loans in the third quarter, and 30% were option adjustable-rate mortgages. The average credit score is 707, and the loan-to-value ratio of the portfolio is 57%, Mr. Killinger said, adding that demand for hybrid ARMs has increased.
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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.
2h ago -
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.
2h ago -
While home lenders are seeing a decrease in issues coming through mobile channels, phone fraud spiked last year, accounting for 28% of losses, a new report found.
4h ago -
The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
April 24 -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24