Underwriting

The more aggressive nonbank lenders are attracting top producers by essentially allowing loan officers to set their own rate of pay. While so-called "pick-a-pay" compensation plans are not illegal, critics say they can encourage loan officers to steer consumers into more expensive loans in order to increase their own pay.

As the mortgage industry begins the New Year, National Mortgage News takes a look at the biggest trends and topics that will shape 2016.

After defeating an expert in Japanese chess, this computer program's next task is to figure out if you can make the payments on a new mortgage.

Mortgage lenders on both the residential and commercial sides of the business will have to deal with a different lending environment in 2016. These include enforcement of TILA-RESPA Integrated Disclosure violations plus rising interest rates and the impact on origination volumes. Here are 10 observations that originators need to mull over while crafting their business plans for the coming year.

Home values rose in 2015 — though at a declining pace — with overall rent payments also trending upwards, according to Zillow.

Radian Guaranty Inc. is in compliance with the government-sponsored enterprises capital standards after receiving $325 million in cash and securities from parent company Radian Group Inc.

For commercial real estate investors, the good times may be over.

Mortgage application defects reached a record low in November, according to First American Financial Corp.

Mid America Mortgage Inc. has created a scratch-and-dent purchase program to buy loans with TILA-RESPA integrated disclosure rule defects.

The rising number of Chinese buying U.S. homes could be a boon for investors with a stake in residential mortgages.

Arch Mortgage Insurance introduced a new pricing program to better aligns a policy's risk with the amount of the premium. But analysts have expressed concerns about pricing competition.

The recovery in the housing market will slow dramatically over the next 10 months, according to Weiss Analytics.

American Mortgage Consultants has bought JCIII & Associates, in a combination of providers of mortgage due diligence and consulting.

The Connecticut Housing Finance Authority issued more than $400 million of bonds in 2015 to finance mortgages at below-market interest rates for low- to moderate-income first-time homebuyers, according to authority officials.

Lenders continued to ease loan standards across all types of mortgage products in the fourth quarter and they expect the trend to continue, according to Fannie Mae.

KeyCorp will keep and expand First Niagara Financial Group's Buffalo, N.Y.-based mortgage operations to spur along its return to being a player in residential lending.

There could be more willingness among lenders to roll back self-imposed requirements for agency loans in 2016, but secondary-market conditions will be mixed for mortgage sellers while rates and costs are poised to rise.

Real estate finance services provider Chronos Solutions in Frisco, Texas, has acquired San Diego-based mortgage technology company Cogent Road.

Credit scores on closed loans have declined for six consecutive months, according to the latest Ellie Mae Origination Insight report.

Default rates on various types of consumer loans improved in November, according to Standard & Poor's and Experian.