Risk management

Future reductions in loan application defect risk are likely because of mortgage lenders' fintech investments, even as the purchase origination share grows, said First American Financial.

Moody's Investors Service downgraded JPMorgan Chase's prime jumbo mortgage originator assessment to its second-highest rating, citing the bank's growing reliance on correspondents with delegated underwriting authority and shortcomings in its technology infrastructure.

Signals are flashing red in the structured credit market, according to Bank of America.

Wells Fargo estimates that in 400 instances, borrowers later went through foreclosure who were improperly denied or not offered a mortgage modification.

Freddie Mac produced modest second-quarter results, reflecting a stabilizing business that CEO Donald Layton compared to a utility company.

Loan defect risk rose in only three states and a handful of metropolitan regions in June thanks to the continuing spread of digital mortgage initiatives that improve data quality.

CoreLogic has updated its Risk Quantification and Engineering tool amid California wildfires to include U.S. Wildfire and U.S. Severe Convective Storm models to support the mortgage and insurance industries in better assessing natural disaster risk.

Wells Fargo has named Senior Vice President Jeff Smith to succeed Perry Hilzendeger as head of home loan servicing following Hilzendeger's earlier appointment to head of retail home lending.

The fees that Fannie Mae and Freddie Mac charge for low down payment mortgages disproportionately reflect their risk exposure and make homeownership more difficult for underserved borrowers.

The high cost of preparing for both CFPB and state exams has a disproportionate impact on small independent mortgage banks that don't have the compliance economies of scale of larger lenders.