Underwriting

Accurate data is critical in the mortgage business. Yet, we often forget exactly how much data goes into every loan file, and that the amount of data continues to grow every year.

Embrace Home Loans, a direct mortgage lender in Newport, R.I., has partnered with Rockland Trust, to process, underwrite and close loans for the Rockland, Mass.-based bank.

While many of the lenders and investment firms seeking to profit from higher-risk mortgages are working to revive the business of bundling such loans into bonds, Citadel, one of the biggest players, is in no rush to see that happen.

The widespread return of the subprime mortgage business will be the big event for the mortgage industry in 2015.

Fannie Mae provided $28.9 billion in financing to the multifamily market last year that supported 446,000 housing units.

Borrowers with lower credit scores accounted for a greater share of loan volume in December 2014 than they did in December 2012, according to a sample of mortgages processed by the Ellie Mae loan origination system.

Fannie Mae recently released its Collateral Underwriter automated risk assessment tool, which evaluates the risk associated with appraisals. It does not accept or reject appraisals, nor does it provide lenders with an estimate of a property's value.

The government has added further protections to reverse mortgage borrowers' spouses who are not named in the loan agreement, but placed conditions under which they are ineligible for older protections.

A majority of small bank executives are concerned about the impact of new regulations on their mortgage lending business, according to an industry trade group.

The Supreme Court gave borrowers the path to file a rescission notice without going to court, but experts expect more banks to initiate legal proceedings to stop rescissions they see as frivolous.

The traditional method of measuring mortgage denials is fundamentally flawed. But by evaluating not just the quantity, but also the quality of mortgage applicants, the denial rate picture becomes more clear.

This isn't the kind of non-qualified mortgage securitization that investors have been clamoring for.

Julian Castro, secretary of housing and urban development, said 2015 will be a year of "housing opportunity" as the economy continues its rebound.

Standard & Poor’s agreed to a one-year suspension from rating certain commercial mortgage bonds and $80 million in fines to settle charges with the Securities and Exchange Commission and the New York and Massachusetts Attorneys Generals offices.

The Obama Administration's decision to cut the FHA annual premium by 50 basis points will do little to boost a lagging housing market where banks are looking for near-zero lending risk.

Mortgage-focused real estate investment trusts, including those affiliated with Western Asset Management and Pine River Capital Management, are backing loans to Americans who don't meet banks' requirements.

Commercial mortgage-backed security performance could come under further strain this year, as the underwriting on the underlying commercial mortgages continues to loosen. Here are eight indicators to consider in sizing up the CMBS market this year.

Ares Management LP won a $700 million commitment to invest in U.S. commercial real estate for a life insurance client.

While put-backs and litigation risk are widely recognized as factors that have contributed to tight credit conditions, another factor — high servicing costs for nonperforming loans — is being overlooked.

As banks look to cuts costs and improve efficiency, many are actively trying to reduce the number of times they "touch" a loan file. The goal: get the application right the first time so it doesn't have to be sent back to the underwriter for time-consuming and costly fixes.