Origination

PHH Corp., the parent company of the nation’s largest nonbank mortgage lender, lost $57 million in the second quarter and signaled its intention to reduce its presence in the correspondent lending channel where it ranks seventh nationwide.

Refinancings of Fannie Mae and Freddie Mac loans with LTV ratios above 125% surged in June as lenders were able to securitize and sell these severely underwater loans for the first time.

Controversy about what method leads to higher real estate valuation accuracy and realistic pricing is keeping up competition between vendors striving to custom fit their tools to the changing needs of their lender and servicer clients.

MetLife, the insurer seeking an exit from banking to limit U.S. regulation, was penalized $3.2 million by the Federal Reserve for lapses tied to the servicing of loans and handling of foreclosures.

The CoreLogic house price index rose for the fourth consecutive month in June and the vendor’s chief executive expects prices will remain positive during the second-half of this year.

Based on his public comments, DeMarco is not unsympathetic to the plight of underwater (but current) borrowers but there is no doubt in his mind that the adoption of a principal reduction program would spur a massive wave of strategic defaults by GSE mortgagors.

SunTrust Bank, one of the largest mortgage lenders in the U.S., is looking for a new executive to manage retail production after the departure of Martha Simmons Scott.

These hirings are a precursor to a move into third party origination channels, company executives said.

The second quarter report shows nearly 38,400 Freddie loans ($8.1 billion) with LTVs above 125% were refinanced during the first-half thanks to the HARP 2.0 changes.

But rest assured, the CFPB will get around to auditing just about every nonbank lender of any decent size.