Origination

Large originators and servicers have long relied on the efficiencies and cost savings of outsourcing, some going as far as building their own offshore facilities, known as “captives” among business process outsourcers. But now, outsource vendors are offering custom fulfillment services, combined with loan origination technology, to small and midsize lenders.

A differentiation needs to be made between marketing and inducement. Can they really be confused when they seem to serve such different functions? Sometimes rather easily as it turns out.

Loan brokers and correspondents that live in fear of mortgage buy back requests from secondary market investors may have a new nemesis to worry about: the Federal Deposit Insurance Corp.

Second quarter mortgage banking revenue at U.S. Bancorp, Minneapolis, was $239 million, up 20% from the first quarter's $199 million but down nearly 2% from the second quarter 2010's $243 million.

The sales pace of existing homes remained unchanged in June amid reports of cancelled contracts and tighter credit standards for mortgage applicants.

Hudson City Bancorp Inc. is looking for opportunities to increase its residential mortgage originations operations to take advantage of the upcoming drop in the conforming loan limits, its top executive said. The company reported net income of $96 million for the second quarter, down from $143 million one year prior.

Zillow completed its initial public offering, listing its common stock on the NASDAQ exchange at $20 a share.

The amount of equity America's senior citizens have in their homes continues to decline, although it is still well above what they had 11 years ago.

The top executive at a senior housing/healthcare lender says borrowers for these types of properties should be able to rely on relatively low interest rates for the foreseeable future, but the long-term outlook is less certain. It all depends on how policy makers balance concerns about inflation, indebtedness and sustainable growth scenarios.

When the Consumer Financial Protection Bureau officially opens its doors Thursday, the new agency will be ready to field complaints about credit cards – but not mortgages or servicing performance.