Originations

In case you haven't been paying close attention and reading the National Mortgage News website (and our paper weekly) the past year, there's a gargantuan shift underway in the mortgage industry. We correctly predicted that the servicing side of the business is 'deconsolidating.'

Collateral Intelligence has signed on with FICO to provide valuation and support for the credit risk provider’s analytic solution that predicts borrowers who are at risk of strategically defaulting on their mortgages.

There has been a lot of talk about how good mortgage credit quality has been post-downturn, but to get a better sense of how good, investors may want to consider some of the steps being taken to mitigate loan performance risk.

The rate-indicative 10-year Treasury yield as of Friday just before noon had continued its upward movement to a point notably higher than the range it had been in previously, but hedged players in the industry so far appear to be weathering the move relatively well.

Despite the government's promise to crack down on violators of the new LO comp rules, nearly one year after they went into effect regulators have failed to deliver on their stern warnings and promises. Not surprisingly, some companies have elected to largely ignore the law, instituting compensation policies that are an obvious and blatant effort at circumventing the new compensation rules.

The Dodd-Frank legislation set new boundaries on the appraisal industry, especially in the areas of valuator independence and fees paid to those who perform work through appraisal management companies.

Farmer Mac earned $13.3 million for the fourth quarter and $13.8 million for the full year 2011, as the company saw increased net interest income and it was able to release funds from its allowances for loan losses.

It's known as the 'Oops' loan market - where Fannie Mae/Freddie Mac lenders get jammed on a buyback request not because the loan is delinquent, but because one of the GSEs finds an underwriting flaw and demands a repurchase or damages. The seller/servicer then takes that loan and resells it to another buyer.

Just wanted to give you a few more observations from Barry Habib from his presentation at the Regional Conference of Mortgage Bankers Associations in Atlantic City.

Regulators likely will increase enforcement of the Real Estate Settlement Procedures Act, with an idea toward sham 'affiliated business arrangements,' according to former FHA commissioner Brian Montgomery.

Mortgage bankers funded roughly $41 billion of jumbo loans in the fourth quarter, a 28% increase from the same period a year earlier, according to exclusive survey figures compiled by National Mortgage News and the Quarterly Data Report.

First Mariner Bancorp Inc. in Baltimore is looking to grow its mortgage business even as it continues to deal with elevated levels of loan losses and a shrinking balance sheet.

It's undeniable that small business is the growth engine of the economy that also helps stimulate the housing market recovery. Many of the third-party service providers, such as special servicers and foreclosure counseling agencies are small size business companies.

Management at Ally Financial Corp. is considering throwing part of its mortgage division into bankruptcy and then executing a sale of most of its "good" assets, investment banking sources said late Thursday.

The Mortgage Bankers Association is willing to back a GSE-related refinancing bill introduced by Sen. Al Franken, D., Minn., but wants assurances that the industry will no longer be hit with buyback requests on loans that are several years old.

For the second time in less than a year, Colony Financial Inc., Los Angeles, has raised fresh capital through a stock offering.

It is better to address the future of the GSEs now rather than wait for stability in the market because if it is done at that time, it would reintroduce instability, Fannie Mae chief economist Doug Duncan told the Regional Conference of the Mortgage Bankers Associations in Atlantic City.

What's the most common complaint I hear these days from mortgage executives? Answer: too much regulation. I'm not going to sit here and tell you to "get used to it" but we all know that given the continued housing recession/depression that there will be no easing up on the regulatory climate any time soon.

Mortgage originators have a moment now that could be their defining moment in dealing with consumers, declared Barry Habib, one of the industry's top trainers. I had the opportunity to once again listen to Barry give his views on the mortgage market, this time at the Regional Conference of Mortgage Bankers Associations in Atlantic City.

The apartment market is recovering nicely and Fannie Mae and Freddie Mac are enjoying the ride.