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. 66, No. 7, April

Agile Systems Move Servicing into the Profit Arena
In the mortgage technology world, most of the attention is usually showered on the front end--the putative "money" side of the loan transaction, where prospects are identified and turned into customers. This may seem like a no-brainer, but if you...
Alaska USA FCU Selects Metavante's Online LOS
Milwaukee-based Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation, announced that Anchorage, Alaska-based Alaska USA Federal Credit Union (Alaska USA FCU) has licensed Metavante's Web-based Loan Origination...
A New Year, a New Market
"Bubble, bubble, toil and trouble." The famous line from Shakespeare's Macbeth seems to fit the media's description of the housing market. The acceleration of housing-price appreciation has captured the imagination of many. The press has had a field...
Apartment Market Remains Strong, but Record Sales May Cool
For the 10th straight quarter, senior apartment executives reported improving apartment demand, although the recent record level of sales transactions may be poised to cool a bit in 2006, according to the National Multi Housing Council (NMHC), Washington,...
Average U.S. Home Worth Nearly 13 Percent More in 2005
Average U.S. home prices increased nearly 13 percent for all of 2005, while home-price appreciation for the fourth quarter of 2005 was about 2.9 percent, or an annualized rate of 11.4 percent, according to the Office of Federal Housing Enterprise Oversight...
Boom or Bubble? Many in the Media Have Written about a "Housing Bubble." but Most Housing Economists Quarrel with the Use of That Term. What's Really Going on with House Prices?
Back in the halcyon days of the dot-com era, an offbeat upstart company calling itself funerals.com promised to "put the fun back in funerals." (In poor taste, we agree, but as you recall, rational thinking wasn't driving the business plans back then.)...
Builder Business: A Great Opportunity to 'Make It Easy'
In 2005, about $275 billion in loans were originated to finance newly constructed homes. Two-thirds of this business required permanent take-out loans because the builder carried the financing during construction. About one-third of that involved construction-to-permanent...
Builder Optimism Up for Rental Apartments, Declines for Condos
Multifamily builders do not expect consumer interest in condominiums to remain as intense in 2006 as it had been in the recent past, even as builder confidence in the multifamily rental market surged during the fourth quarter of 2005, according to...
Central Pacific Mortgage Acquires Ivanhoe
Central Pacific Mortgage (CPM), Folsom, California, has acquired retail branch offices, the wholesale production platform and the current operations center of Orlando, Florida-based Ivanhoe Financial Inc. The company is operating as Ivanhoe Mortgage,...
Condos Remain 'Lifestyle Choice' for Small, Solid Minority
Even as the red-hot condominium market cools down, new marketing opportunities abound for developers that can recognize and effectively exploit a growing demographic trend, condo experts told attendees of the annual Real Share commercial real estate...
Court Stays Controversial Maryland County Lending Law
A Maryland circuit court judge issued a 90-day stay, blocking implementation of a Montgomery County anti-abusive-lending ordinance, even as the Treasury Department's Office of Thrift Supervision (OTS) weighed in that the local law infringes on the...
Credit-Score Agencies Collaborate on New Credit Score
The nation's three major consumer credit-repository companies jointly announced in March the introduction of a new credit score designed to simplify and enhance the credit process for both consumers and credit grantors. The new VantageScore[SM]--an...
Downturn Will Hit the Tech Sector
We often discuss production volume in this industry. We cover with exacting detail weekly loan application volume, average new loan interest rates and a whole host of other statistics. All of these indexes help us understand the current industry cycle...
Fannie Mae Releases Rudman Report
A long-awaited report by former Senator Warren Rudman (R-New Hampshire) regarding Fannie Mae's accounting and governance may have bolstered the Bush administration's position that Congress should reduce the mortgage portfolios of Fannie and of fellow...
Forecasters See Steady Economic Growth Following Q1 Rebound
Expect to see relatively steady economic growth during 2006, with a stronger-than-expected first quarter following unexpectedly slower growth in the nation's gross domestic product (GDP) during the fourth quarter of 2005, according to a survey of 53...
Frictionless Compliance: Compliance Risks Can Be Better Managed by Making Use of Automated Tools before a Loan Is Closed
Owning a home is a critical part of the American dream--in fact, for many it is the American dream. In recent years, a growing number of people from what the lawyers and regulators call "protected classes" have been able to live that dream by purchasing...
From Another World-New Competitors and the Need to Adapt
The threat of extinction is with us always. Potential extinction is a constant threat to mortgage originators and their technology vendors. According to oft-quoted and little-understood writings of Charles Darwin, extinction weeds out the less-fit...
Growth Forecast Clear for Next Three Years
Look for unabated economic growth, as well as continued foreign investment in the United States, for the next three years, although the five-year forecast calls for possible dark regulatory skies, according to one real estate expert. The U.S. economy...
Hotel Construction Pipeline Poised for Record Growth
Look for the total number of hotel projects in the construction pipeline to continue rising through the end of the decade, with the record for totals set in 1998 likely to be surpassed perhaps as early as next year, according to Portsmouth, New Hampshire-based...
Housing Activity: Residential Structures (Thousands of Units, SAAR)
BY TYPE OF UNIT HOUSING STARTS BUILDING PERMITS Single- Multi- Single- Multi- Total Family Family Total Family Family FEB-05 2,228 1,860 368 2,093 1,707 ...
Interview: Doug Duncan, Chief Economist, Mortgage Bankers Association
Anyone who has been a member of the Mortgage Bankers Association (MBA) for longer than five minutes knows Douglas G. Duncan, or at least has seen him on the podium somewhere. For those just joining us, MBA's chief economist and senior vice president...
Is the Apartment Market Back? Ironically, Current Conditions in the Housing Market Are Undoing a Bit of the Damage Done to the Apartment Market in Recent Years by Renters Fleeing to Become Homeowners. Now, with House Prices Drastically Up and Interest Rates Starting to Climb, Apartments Have Regained Some of Their Appeal
The nation's multifamily housing market is continuing to gather strength as the home-buying and condo-conversion markets cool in the wake of higher costs and rising interest rates. [??] The consensus is that significant improvement has occurred on...
Katrina Repair in New Orleans to Top $10 Billion
An MBA study has concluded that if mortgage lenders are to invest much-needed private capital into storm-ravaged New Orleans in order to aid in its economic recovery, lenders must have "some reasonable expectation" that the value of the property on...
Key Economic Indicators and Interest Rates
CONSUMER PRICES, YEAR-OVER-YEAR MBA CHANGE (%) MORTGAGE INTEREST CHANGE IN ALL ITEMS RATES (%) ...
Loan Quality vs. Compensation: Should Lenders Consider Offering Originators Financial Incentives for Producing Fully Compliant Loans? Could This Be a Workable Approach for Fostering Compliance with the Patchwork of Predatory Lending Laws?
The increased legislative and regulatory scrutiny of alleged abusive lending practices has prompted renewed recognition by the mortgage industry of the critical role compliance plays, especially in originations. While, for the most part, the industry...
MISMO Continues to Lead in eMortgage Development Efforts
MISMO[R], the technology standards-setting subsidiary of the Mortgage Bankers Association (MBA), is busily engaged in discussion over a turning point in the development of eMortgages. The great news has two parts: the industry is serious about eMortgages...
MISMO, PRIA Formalize Alliance
MISMO[R], the non-profit subsidiary of the Mortgage Bankers Association (MBA) and the Property Records Industry Association (PRIA), Durham, North Carolina, have established an alliance that will enable seamless "plug and play" between MISMO and PRIA...
MISMO Releases First Commercial/multifamily Data Standard
MISMO announced the completion and release of its first data standard for the commercial/multifamily mortgage industry. The release of Commercial Servicing Transfer Standard Version 1.0 marks completion of the first phase of MISMO's broad effort to...
Mortgage Applications Indexes: Mortgage Bankers Association (MBA)
MARKET COMPOSITES (Unadjusted) Market Purchase Refinance FRM ARM Index Index Index Index Index FEB-05 725.1 439.4 2,386.5 524.4 4,924.6 MAR-05 737.2 511.6 2,049.0 515.9 ...
Mortgage Fraud Bill Introduced in the Senate
A bill introduced in the Senate would provide the first federal definition of mortgage fraud, as well as criminalize the fraudulent activities. The bill, S. 2280, the Stopping Transactions which Operate to Promote Fraud, Risk and Underdevelopment...
Mortgage Offshoring to India Goes Mainstream
The global sourcing of information technology (IT) services and business process outsourcing (BPO) is moving from a leading edge to a mainstream activity for U.S. mortgage lenders. TowerGroup estimates that as of December 2004, 2.4 percent of all U.S....
National Residential Lenders-Top 25
Fourth-Quarter 2005 / Sort Order: Total Loan Amount PURCHASE Share Number Share of of Rank Lender...
PRIA: Balance Consumer Privacy with Business Access to Land Records
Before lawmakers--state or federal--enact legislation to mandate the curtailment or redaction of Social Security numbers (SSN) from public land records as an anti-identity-theft measure, they should consider the potential impact that limiting such...
Proliferation
Just when you think you have compliance covered--there's a new set of rules. That must be how lenders are feeling today. On top of that, the list of people making the rules just keeps getting longer. It used to be somewhat simple. There were state...
Regulation AB: It Has Been Two Years in the Implementation, and Now, Finally, Regulation AB Is in Effect. That Makes This a Good Time to Summarize What Regulation AB Does, and How It Has Affected-And Will Affect-Industry Practices
Before the adoption of Regulation AB, public offerings of mortgage- or asset-backed securities (ABS) were governed by an incredible hodgepodge of rulings, no-action letters and other interpretive material about what the securities laws required in...
Technobabble
Technobabble is found in many places. We frequently see it in stories in the trade press as well as in press releases and conference presentations. In this issue of Technobabble we offer examples of both. Readers wrote in offering the following...
The Ameriquest Settlement: The Settlement between Ameriquest and the 49 State Attorneys General Provides a Window into the AGs' Thinking on Mortgage Lending Litigation
During the past several years the state attorneys general have aggressively pursued the mortgage industry, including companies such as Household International, parent company of Household Finance Corporation and Beneficial Finance Corporation ($484...
The Data-Security Issue: Almost Two Dozen States Have Enacted Data-Security Laws. Another 13 Introduced Legistative Proposals This Year. High-Profile Cases of Consumers' Personal Data Being Leaked Have Prompted Many Lawmakers-Both Federal and State-To Push for New Protections
Several prominent security-breach cases have made headlines, prompting privacy and identity-theft prevention to become a top priority for companies that handle consumers' personal information. Several of the most high-profile security breaches in 2005...
The Emergence of Alt-A
Last month I discussed the evolution of the subprime industry and the events that shaped its growth over the last two decades. This month I examine the dramatic growth in the alternative-A mortgage sector. Residential mortgage originations grew...
The Fraud File
Interthinx's Top 10 Hot Spots for possible mortgage fraud (listed above) are derived from an analysis of all loan application data submitted to the Interthinx fraud-detection and fraud-prevention tools in 2005. Of all the loans submitted to Interthinx...
The Growing Threat of Fraud against Lenders
As the Mortgage Bankers Association (MBA) works to educate lawmakers about the damage caused by mortgage fraud against lenders, we face somewhat of an uphill battle. To some, this type of white-collar crime appears to hurt (in their wallets) only those...
The Incredible Growth of Navy Federal Credit Union: With 109 Branches and 2.5 Million Members Spread Far and Wide, Navy Federal Credit Union Needs Solid Technology to Keep Its Operation Humming 24x7
During the Great Depression, as the story goes, seven non-military U.S. Navy employees came together and with $70 started an organization destined to eventually control $24 billion in assets. In 1933, Navy Federal Credit Union, Vienna, Virginia, was...
The New System Is Live-How Come It's Not Better?
Even "successful" technology projects can be failures. They fail to live up to their initial promise and fall short of producing the desired business results. The following account is a compilation of some real-life experiences that have happened...
The Ticker
Price Price Ticker Close Close 52-Week 52-Week Company Symbol 2/28/06 1/31/06 High Low Indymac Bancorp Inc. NDE 38.82 40.86 ...
Top 25 Counties-Residential ARM Markets
Fourth-Quarter 2005, Nationwide / Sort Order: Number of Loans Market Avg. Rank County Count Dollar Amount Share Amount 1 LOS ANGELES, CA 106,910 $32,878,015,006...
Top 25 Counties-Residential FRM Markets
Fourth-Quarter 2005, Nationwide / Sort Order: Number of Loans Market Avg. Rank County Count Dollar Amount Share Amount 1 LOS ANGELES, CA 93,738 $18,134,043,244...
Waking Up the Markets
America's lenders enter the traditional spring home-buying season more likely to announce additional layoffs than expansions. Bloomberg columnist John Wasik sums up the situation when he writes, "The U.S. home market continues to resemble a bear entering...
What Lies Ahead for Bernanke's Fed?
The Fed has entered a period of policy uncertainty as it seeks to strike a balance between concerns over inflation and the economy. The Fed's new chairman will keep a watchful eye on potential rising labor costs, any pass-through of higher energy costs,...
Why Should I Care about Rules Engines? Rules-Engine Technology Has Come into Vogue in the Mortgage Industry. We Consider Four Basic Applications: Automated Underwriting, Product and Pricing Eligibility, Workflow/business-Process Management and General-Purpose Rules Engines
WHAT DO THE FOLLOWING HAVE IN COMMON: The conforming loan limit is $417,000; fees cannot be greater than 5 percent of the loan amount; we do not originate loans with credit scores below 500; and all Texas loans need to route to Wanda for closing? Answer:...
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