Mortgage Banking

Founded in 1939, Mortgage Banking Magazine is a professional trade magazine published by Mortgage Bankers Association of America. Its headquarters are located in Washington, D.C. The magazine is published monthly and serves the banking, real estate and financial markets. Janet Hewitt is the editor-in-chief.

Articles from Vol. 71, No. 1, October

50 States by Appreciation Rate
(June 2010 Data, Ranked Worst to Best in Percent Decline from Peak--Includes District of Columbia) Rank State Peak Month % Decline Since 12-Month Peak HPI Change ...
A 'Boots on the Ground' View
It is difficult to pinpoint the month, or even year, that the mortgage crisis officially began. In 2005, the real estate industry felt its first hints of a housing-sales slowdown. By 2006, foreclosures were on the rise nationally. In 2007, reports...
A Framework for Housing Finance Reform
With the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the government must now turn its attention to the cornerstone of any housing policy-the creation of a reliable and sustainable system of mortgage financing. As acknowledged...
A Lot on His Plate
Michael D. Berman, CMB, will inherit some difficult issues when he becomes chairman of the Mortgage Bankers Association. The whole mortgage finance system is being debated on his watch, and it looks like he's ready for the challenge.MICHAEL BERMAN is...
A Lot on His Plate: Michael D. Berman, CMB, Will Inherit Some Difficult Issues When He Becomes Chairman of the Mortgage Bankers Association. the Whole Mortgage Finance System Is Being Debated on His Watch, and It Looks like He's Ready for the Challenge
MICHAEL BERMAN is a card-carrying member of the Red Sox Nation. Raised in Provincetown, Massachusetts, on the tip of Cape Cod, he counts himself among the hardcore followers of the Boston Red Sox. One of the shared traits of these insanely loyal fans...
Altisource Portfolio Solutions Announces New Short-Sale Services
Altisource Portfolio Solutions, Albany, New York, a provider of knowledge process services related to real estate mortgage portfolio management, asset recovery management and customer relationship management, has added short-sale and deed-in-lieu services...
Altisource Portfolio Solutions Announces New Short-Sale Services
Altisource Portfolio Solutions, Albany, New York, a provider of knowledge process services related to real estate mortgage portfolio management, asset recovery management and customer relationship management, has added short-sale and deed-in-lieu services...
Anti-Predatory-Lending Provisions Most Far-Reaching of Dodd-Frank Act
The sweeping new legislation passed by Congress and signed into law by President Obama in July dramatically bolsters the government's anti-predatory-lending powers, according to an analysis by Washington, D.C.--based law firm Sonnenschein Nath &...
Apartment, Office Forecasts Hinge on Job Growth
As apartment vacancy rates drop, office vacancies will increase and put downward pressure on rents going into next year, according to Marcus & Millichap Research Services, Encino, California. The forecast said apartment vacancies will slip to 7.4...
A Problem of Policy
The prevailing narrative regarding the cause of the financial crisis holds what is seen as a greed-driven private sector responsible. A secondary narrative points to a greed-driven Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs),...
A Sweeping CRACKDOWN
Operation Stolen Dreams has been the largest government crackdown on mortgage fraud in our nation's history. Directed by the Federal Bureau of Investigation, in just three months - from March to June it netted 485 arrests and 336 individual convictions,...
A Sweeping Crackdown: Operation Stolen Dreams Has Been the Largest Government Crackdown on Mortgage Fraud in Our Nation's History. Directed by the Federal Bureau of Investigation, in Just Three Months-From March to June-It Netted 485 Arrests and 336 Individual Convictions, and Recovered More Than $147 Million
In the daytime hours of June 16 this year, newswire stories began to trickle in reporting the arrests, indictments and guilty pleas of individuals and institutions across the country for charges of mortgage fraud. On June 17, the U.S. Justice Department...
Axios Valuation Solutions Integrates with a la Mode's Mercury Network
Fort Worth, Texas-based Axios Valuation Solutions has fully integrated its appraisal management operations with a Oklahoma City-based a la mode Inc.'s Mercury Network Vendor Management Platform (VMP). Mercury Network, a la mode's online appraisal...
Axios Valuation Solutions Integrates with a la Mode's Mercury Network
Fort Worth, Texas-based Axios Valuation Solutions has fully integrated its appraisal management operations with a Oklahoma City-based a Ia mode Inc. 's Mercury Network Vendor Management Platform (VMP).Mercury Network, a Ia mode's online appraisal Vendor...
Basel Committee Outlines Capital Reserve Requirements
The Basel Committee on Banking Supervision hammered out reforms on Basel III in September that could increase minimum bank capital reserve requirements. Under the agreements, the highest form of loss-absorbing capital--the minimum common equity...
Behind Home-Price Indexes: What You Should Know
Indexes of home-price appreciation have become the valuation tool of choice for many investors. The idea is a simple one: You take the last known sales price of a property, multiply it by the index for the ZIP code in which the property is located,...
Beige Book: Economic Uncertainty Stalls CRE Growth
Several Federal Reserve districts reported tighter lending, particularly for commercial real estate (CRE) Joans, as economic uncertainty remained a theme in the Fed's September Beige Book. New York district bankers said delinquency rates increased...
CoreLogic: Home Prices Flat in July
New data from CoreLogic Inc., Santa Ana, California, found that home prices in the United States remained flat in July as transaction volumes continued to decline. CoreLogic's Home Price Index (HPI) noted that July marked the first time in five...
CoreLogic Launches Short-Sale Monitoring Solution
Santa Ana, California-based CoreLogic, a provider of consumer, financial and property information and business services, has launched Short Sale Monitoring Solution [TM]--a short-sale fraud-prevention and pricing solution. The new service allows lenders...
CoreLogic Launches Short-Sale Monitoring Solution
Santa Ana, California-based CoreLogic, a provider of consumer, financial and property information and business services, has launched Short Sale Monitoring Solution(TM) - a short-sale fraud-prevention and pricing solution. The new service allows lenders...
CoreLogic Teams with Blueberry Systems to Reduce Mortgage Fraud
Santa Ana, California-based CoreLogic has announced the integration of its LoanSafe Fraud Manager Suite with Greenwood Village, Colorado-based Blueberry Systems LLC's RELAY [TM] loan production platform. LoanSafe Fraud Manager, CoreLogic's advanced...
CoreLogic Teams with Blueberry Systems to Reduce Mortgage Fraud
Santa Ana, California-based CoreLogic has announced the integration of its LoanSafe Fraud Manager Suite with Greenwood Village, Colorado-based Blueberry Systems LLC's RELAY(TM) loan production platform. LoanSafe Fraud Manager, CoreLogic's advanced mortgage...
Deal Roster
The market for private-label mortgage-backed securities (MBS) mostly collapsed in August 2007 when investors abandoned the market entirely for alternative-? and subprime. After that, private-label issuance - mostly jumbos and resecuritizations - kept...
Experian Offerings Help Clients Comply with New Risk-Based Pricing Regulations
Experian, Costa Mesa, California, a global information services company, has announced a comprehensive offering of products and services to help clients comply with consumer-notification requirements related to the new risk-based pricing rule. Beginning...
Experian Offerings Help Clients Comply with New Risk-Based Pricing Regulations
Experian, Costa Mesa, California, a global information services company, has announced a comprehensive offering of products and services to help clients comply with consumer-notification requirements related to the new riskbased pricing rule. Beginning...
Exploring Mortgage Frontiers
Loan officers who read Freddie Mac's August 2010 Economic Outlook were greeted by the ominous-sounding headline: "Where Have All the Originations Gone?" Already originators were bracing for the impact of tougher proposed Federal Housing Administration...
FANNIE MAE'S Loan Quality Initiative
The Loan Quality Initiative that Fannie Mae launched this year is designed to mitigate repurchase risk. It's also giving lenders some compliance heartburn.The mortgage meltdown continues to negatively impact every element of the industry, as well as...
Fannie Mae's Loan Quality Initiative: The Loan Quality Initiative That Fannie Mae Launched This Year Is Designed to Mitigate Repurchase Risk. It's Also Giving Lenders Some Compliance Heartburn
The mortgage meltdown continues to negatively impact every element of the industry, as well as the economy. It's no surprise that some of the bad apples who caused this mess have long since left the mortgage industry or are under indictment, while...
FHA's Costly Experience Seller-Funded with Down Payments: The Saga of Seller-Funded Down-Payment-Assistance Loans Is a Troubling One. This New Study of FHA Claims on These Loans Shows $5 Billion Has Been Paid out Already-With Much More to Come
The Federal Housing Administration (FHA) was established by Congress in 1934 through the enactment of the National Housing Act. FHA's mission is to insure mortgages. This means FHA agrees to protect mortgage lenders against the risk of loss caused...
FHA's Costly Experience with Seller-Funded Down Payments
The saga of seller-funded down-payment-assistance loans is a troubling one. This new study of FHA claims on these loans shows $5 billion has been paid out already-with much more to come.The Federal Housing Administration (FHA) was established by Congress...
Field Asset Services Launches Collateral Command Solution
Austin, Texas-based Field Asset Services (FAS), a provider of field services to the real estate-owned (REO) industry, has launched Collateral Command [TM], an integrated solution for property management services and support. Collateral Command offers...
Field Asset Services Launches Collateral Command Solution
Austin, Texas-based Field Asset Services (FAS), a provider of field services to the real estate-owned (REO) industry, has launched Collateral Command(TM), an integrated solution for property management services and support. Collateral Command offers...
GSE Reform: Avoid 'Sledgehammer' Solutions
If you are trying to swat a fly, you don't use a sledgehammer. But some in the industry are suggesting the government do just that with Fannie Mae and Freddie Mac. In the midst of the Great Recession, they have declared these government-sponsored enterprises...
Holliday Fenoglio Fowler Arranges $114 Million for Industrial Portfolio
Holliday Fenoglio Fowler LP (HFF) arranged more than $340.4 million in debt financing, including $114 million for a portfolio of six industrial properties. Lloyd Minten, senior managing director at HFF's Portland, Oregon, office, secured $114 million...
Housing Activity
Residential Structures (Thousands of Units, SAAR) BY TYPE OF UNIT HOUSING STARTS Total Single-Family Multi-Family AUG-09 585 489 96 SEP-09 586 516 70 OCT-09...
HUD, NCST Launch National First Look Program
Selected state and local government agencies and nonprofit organizations will have the right of first refusal or "first look" to purchase foreclosed homes before those properties are made available to private investors, under the terms of a new collaborative...
Innkeepers Portfolio Pushes CMBS Delinquencies Up in August
Hotel properties pushed up the U.S. commercial mortgage-backed securities (CMBS) delinquency rates in August, rating agencies reported. Fitch Ratings, New York, reported a 20.8 percent delinquency rate in August for hotels, up from 18.64 percent...
J.D. Power: Servicer Customer Satisfaction Slips during Loan Mods
Mortgage servicers more often fail to deliver on best practices during the loan-modification process compared with during the loan origination process, according to a study by J.D. Power and Associates, Westlake Village, California. J.D. Power's...
Key Economic Indicators and Interest Rates
CONSUMER PRICES, YEAR-OVER-YEAR CHANGE (%) CHANGE IN UNEMPLOYMENT ALL ITEMS ALL ITEMS LESS PAYROLL RATE % FOOD AND ENERGY ...
Loss Mitigation-Understanding the Fundamentals
In 2009, the mortgage industry and local, state and federal governments heightened their focus on home retention and on inviting new buyers into the market in the midst of rising unemployment. As we approach the close of 2010, we continue to focus...
MBA Economic Commentary: Slow Growth Ahead
Data from August leave no doubt that economic growth has slowed to a snail's pace. Second-quarter gross domestic product (GDP) growth was revised down to a 1.6 percent annual rate. Orders for durable goods other than transportation equipment fell sharply...
MBA: Foreclosures, Delinquencies Decrease in Q2
The share of homeowners in the foreclosure process and the share of homeowners paying their mortgages late each decreased during the second quarter of 2010, according to the Mortgage Bankers Association (MBA). MBA's quarterly National Delinquency...
MBA Letter Asks FHFA to Clarify GSE Proposal
The Federal Housing Finance Agency's (FHFA's) proposed regulations to establish a framework for the conservatorship and receivership of the government-sponsored enterprises (GSEs) under the agency's watch are "overly theoretical" and lack specificity...
MELTDOWN PUSHES More Fiduciary Duties ON BROKERS
Whether mortgage brokers have a fiduciary duty to borrowers was already a heated topic before the mortgage crisis hit. In the wake of the meltdown, many new laws and court cases have made the answer to that question even more complex.Attempts to pinpoint...
Meltdown Pushes More Fiduciary Duties on Brokers: Whether Mortgage Brokers Have a Fiduciary Duty to Borrowers Was Already a Heated Topic before the Mortgage Crisis Hit. in the Wake of the Meltdown, Many New Laws and Court Cases Have Made the Answer to That Question Even More Complex
Attempts to pinpoint the causes of the housing crisis and prevent a recurrence have focused on mortgage brokers and home loan origination practices. Legislators have taken steps to impose fiduciary duties on residential mortgage brokers, and courts...
Mortgage Applications Indexes
Mortgage Bankers Association (MBA) MARKET COMPOSITES (Unadjusted) Market Index Purchase Index Refinance FRM ARM Index Index Index AUG-09 551.9 ...
Mortgage Cadence Teams with Investment Partner
Denver-based Mortgage Cadence LLC, a provider of Enterprise Lending Solutions (ELS), loss-mitigation technology and document services for the financial services industry, announced that Cambridge, Massachusetts-based Monitor Clipper Partners has invested...
Mortgage Cadence Teams with Investment Partner
Denver-based Mortgage Cadence LLC, a provider of Enterprise Lending Solutions (ELS), loss-mitigation technology and document services for the financial services industry, announced that Cambridge, Massachusetts-based Monitor Clipper Partners has invested...
NAIC Takes Closer Look at CMBS Risk
The National Association of Insurance Commissioners (NAIC), Washington, D.C., announced it has selected BlackRock Solutions, New York, to assist state regulators as they determine risk-based capital (RBC) requirements for commercial mortgage-backed...
New California Law Requires Mortgage Document Translations
Mortgage originators in California are now subject to a new state law mandating mortgage loan documents be written/printed in the same language in which verbal negotiations were conducted. The law, AB 1160, which became effective July 1, requires...
PCLender Adds 18 New Customers in Second Quarter
Hockessin, Delaware-based PCLender.com Inc. announced it added 18 new customers in the second quarter, showcasing the company's growth in 2010. Glen-view State Bank, Glenview, Illinois; General Electric Federal Credit Union, Milford, Connecticut; Mutual...
PCLender Adds 18 New Customers in Second Quarter
Hockessin, Delaware-based PCLender.com Inc. announced it added 18 new customers in the second quarter, showcasing the company's growth in 2010. Glenview State Bank, Glenview, Illinois; General Electric Federal Credit Union, Milford, Connecticut; Mutual...
People
Hugh F. Frater has been appointed chief executive officer of Berkadia Commercial Mortgage LLC in Horsham, Pennsylvania. John Madrid has been appointed chief executive officer of xplair Technology LLC in San Diego. Subha V. Barry has been named chief...
Rebooting the PRIVATE MBS MARKET
A significant revival of the private-label residential mortgage-backed securities (RMBS) market may be at least two years away. While there are many barriers and detours along the way, there may also be an occasional fast lane that could lead to new...
Rebooting the Private MBS Market: A Significant Revival of the Private-Label Residential Mortgage-Backed Securities (RMBS) Market May Be at Least Two Years Away. While There Are Many Barriers and Detours along the Way, There May Also Be an Occasional Fast Lane That Could Lead to New RMBS Issues
At a June conference on the future of mortgage finance sponsored by Moody's Investors Service at its corporate headquarters in New York, the audience was polled with this question: When do you see the private-label residential mortgage-backed securities...
ServiceLink Producing Faster Short-Sale Turnaround
Pittsburgh-based ServiceLink, Fidelity National Financial's National Lender Platform and a provider of origination, loss-mitigation and default services, has reported its short-sale business model is resulting in dramatically reduced short-sale approval...
ServiceLink Producing Faster Short-Sale Turnaround
Pittsburgh-based ServiceLink, Fidelity National Financial's National Lender Platform and a provider of origination, loss-mitigation and default services, has reported its short-sale business model is resulting in dramatically reduced short-sale approval...
SettlementOne Releases CreditConx Compliance Solution
SettlementOne Credit Corporation, San Diego, announced it has responded to Fannie Mae's newest prefunding requirements with the launch of its CreditConx [TM] compliance solution for wholesale lenders. According to SettlementOne, Fannie Mae's Announcement...
SettlementOne Releases CreditConx Compliance Solution
SettlementOne Credit Corporation, San Diego, announced it has responded to Fannie Mae's newest prefunding requirements with the launch of its CreditConx(TM) compliance solution for wholesale lenders.According to SettlementOne, Fannie Mae's Announcement...
Short-Sale Fraud Costs Lenders $310 Million Annually
Fraud in short-sale transactions is costing mortgage lenders hundreds of millions of dollars annually, according to a study by Santa Ana, California--based Core-Logic Inc. The study--The Cost of Short Sales 2010--noted that while the definition...
Stigma of BP Oil Spill Impacts Housing Markets beyond Gulf
The uncertainty and "social stigma" generated by last summer's BP Deepwater Horizon oil spill has reached beyond the Gulf Coast as the environmental disaster has thrown the entire region into economic upheaval, according to a survey by Truckee, California--based...
Taking a Stand
Originators have potentially formidable defenses to combat the surge in repurchase demands.For several years and culminating at the height of the U.S. housing market, regional banks and mortgage companies produced an enormous volume of both first- and...
Taking a Stand: Originators Have Potentially Formidable Defenses to Combat the Surge in Repurchase Demands
For several years and culminating at the height of the U.S. housing market, regional banks and mortgage companies produced an enormous volume of both first- and second-lien residential mortgage loans. Soon after origination, the mortgage loans were...
The Future of Housing Finance
Here are 10 recommendations for rebuilding a sturdier, more rational housing finance system.American housing finance is living in the wake of the great housing bubble of 2000-2006 and its collapse into the panic of 2007-2009. With house prices having...
The Future of Housing Finance: Here Are 10 Recommendations for Rebuilding a Sturdier, More Rational Housing Finance System
American finance is living in the wake of the great housing bubble of 2000-2006 and its collapse into the panic of 2007-2009. With house prices having fallen more than 30 percent from peak to trough--something previously considered impossible--they...
The Great Recession
The press release arrived on Sept. 20, and it officially declared: "Longest Post-War Recession Ended in June 2009." That was the call from the National Bureau of Economic Research--the "decider" on these types of things. But if it's been over for more...
The New Age for AMCs
The era of appraisal management company proliferation may be over, but don't count AMCs out. There are plenty of reasons for AMCs to live on. But they will have to solve the fee question.When we look back to 2009, 1 believe we will mark that point in...
The New Age for AMCs: The Era of Appraisal Management Company Proliferation May Be over, but Don't Count AMCs out. There Are Plenty of Reasons for AMCs to Live on. but They Will Have to Solve the Fee Question
When we look back to 2009, I believe we will mark that point in time as the beginning of the age of appraisal management companies (AMCs). That's not to say AMCs did not exist before 2009; they have been around for three decades. [ILLUSTRATION OMITTED]...
The New IMARC
A California company that used to help chase down guilty parties in mortgage fraud cases has changed its focus. IMARC LLC is now helping mortgage insurers and others audit loan files to chase down origination problems that led to default.Back in 2001,...
The New IMARC: A California Company That Used to Help Chase Down Guilty Parties in Mortgage Fraud Cases Has Changed Its Focus. IMARC LLC Is Now Helping Mortgage Insurers and Others Audit Loan Files to Chase Down Origination Problems That Led to Default
Back in 2001, a Mortgage Banking magazine article made note of a specialized firm set up to battle mortgage fraud, and the author of the article, in colorful prose, wrote, " ... IMARC is tracking down the bad guys and nailing them in court." [ILLUSTRATION...
The Rationale for Customer-Service Training
Most of my columns are directed at people who approve budgets and staffing for training. This one suggests actual training content that I have found successful for engaging an audience, and kicking off a customer-service training event. Conceptually,...
The Real Problem in the Housing Crisis
Both servicers and borrowers a little before the standoff over problem loans can be resolved. Ri now, it's a question of who will blink first.An old-fashioned standoff is keeping a lid on loan-modification activity and is threatening to prolong the housing...
The Real Problem in the Housing Crisis: Both Servicers and Borrowers Need to Give a Little before the Standoff over Problem Loans Can Be Resolved. Right Now, It's a Question of Who Will Blink First
An old-fashioned standoff is keeping a lid on loan-modification activity and is threatening to prolong the housing crisis. With $7 trillion of homeowner equity having evaporated over the past three years and the federal government having committed...
The Signs Were There. .
Dissecting the evidence of the pending meltdown shows there were plenty of warning signs in 2006. The industry just wasn't convinced its world was teetering on the brink.The year 2006 was a pivotal one for the mortgage lending industry. The industry...
The Signs Were There ... Dissecting the Evidence of the Pending Meltdown Shows There Were Plenty of Warning Signs in 2006. the Industry Just Wasn't Convinced Its World Was Teetering on the Brink
The year 2006 was a pivotal one for the mortgage lending industry. The industry originated approximately $2.6 trillion of mortgage loans--the industry's fifth-best year ever. There were signs of trouble--but we were still making money. Perhaps more...
The Ticker
Company Ticker Price Price 52-Week 52-Week Symbol Close Close High Low 8/31/10 7/30/10 BB&T Corp. BBT 22.12 24.83 35.72 21.72 PulteGroup...
Top 25 Core-Based Statistical Areas-Combined REO + Short Sales
(June 2010 Data, Ranked by REO + Short Sales--Percentage of all Sales) Rank CBSA Total Count New-Home (All Safes) Sales Count 1 DETROIT-LIVONIA-DEARBORN, MI ...
Top Core-Based Statistical Areas (CBSAs) by Percentage of Loans Resetting within Next Year
Single-Family Detached (June 2010 Data) Ranked by Percentage of Outstanding Prime Loans Resetting Within the Next 12 Months* Rank CBSA Percentage of all...
U.S. Investors Increase Global Capital Flow, JLL Report Says
U.S. investors increased global interregional commercial real estate investments by 48 percent during the first half of this year compared with the same time last year, according to Jones Lang LaSalle, Chicago. "The rise in cross-border transaction...