Origination

New home sales fell 1% in January after rising four straight months, according to new government figures released Friday morning.

Ah, the morning after a bitter split. Late yesterday Brian Moynihan of Bank of America walked into Fannie Mae's bedroom and told that secondary market hussy that the marriage was over. "No more loans for you," Moynihan shouted as he left the boudoir, suitcase in hand and a one-way ticket to Virginia where his new best friend, Freddie, awaited. (Okay, I made that part up but you get the drift.)

A new sales coaching student of mine asked an interesting question during our first session. "Steve, would you have difficulty selling a $5 bill for $4?" Without hesitation I replied, "No, however I'm sure to encounter several obstacles. With the proper preparation, when given the opportunity, I'm certain to succeed."

Launched a few months back, the correspondent lending division of American Home Mortgage Servicing is approaching a monthly run-rate of $500 million and could wind up buying upwards of $6 billion in product by the time its fiscal year ends in September.

How anxious are residential lenders and servicers about the new levels of regulation and compliance they are being subjected to? The answer is: plenty nervous.

The Department of Housing and Urban Development this week reissued a proposed rule that would reduce by half the maximum allowable seller concessions in an FHA loan transaction to 3%.

Bank of America Thursday afternoon confirmed that it will no longer sell any new purchase money mortgages to Fannie Mae -- though it will remain a HARP lender.

The text of commitment letters is extremely important and must contain the exact terms and conditions of a loan commitment. It will contain all essential specifics. In order for one to generate an effective commitment letter, one must have a clear understanding of all the terms. To get there, it is often desirable to start with a term sheet.

Home prices rose in 27 states during the fourth quarter as home values increased on GSE-related transactions during the final two months of 2011.

The average rate for a 30-year fixed rate mortgage rose eight basis points to 3.95% for the week ending Feb. 23, reflecting both an improving economy and housing market, according to new figures compiled by Freddie Mac.