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. 2, November

Buying Loans
THE RACE IS ON TO GENERATE MORE WHOLESALE AND CORRESPONDENT BUSINESS. Everybody is chasing market share, and the sense is brokers are really good at drumming up local business even when deals get much harder to come by. As the market scales back, lenders...
Changing Jumbo Market
RECORD NUMBERS OF AMERICANS ARE buying million-dollar homes today, and the mortgage industry has played its role by making qualifying easier. Higher loan-to-value (LTV) ratios and greater underwriting flexibility for jumbo loans mirror conforming loan...
Commercial Real Estate Spikes after Hurricane Katrina
THE DEMAND FOR COMMERCIAL REAL ESTATE space following Hurricane Katrina spiked in the regions surrounding the disaster zone, providing additional stimulus to major commercial market sectors that were already experiencing growth, according to an analysis...
Commercial Real Estate Spikes after Hurricane Katrina
THE DEMAND FOR COMMERCIAL REAL ESTATE space following Hurricane Katrina spiked in the regions surrounding the disaster zone, providing additional stimulus to major commercial market sectors that were already experiencing growth, according to an analysis...
Cong. Black Caucus: Homeownership Key to Minority Wealth
REP. MELVIN WATT (D-NORTH CAROLINA), chairman of the Congressional Black Caucus (CBC), Washington, D.C., lauded mortgage lenders during a recent conference for their commitment to minority homeownership and the industry's efforts toward diversity....
Cong. Black Caucus: Homeownership Key to Minority Wealth
REP. MELVIN WATT (D-NORTH CAROLINA), chairman of the Congressional Black Caucus (CBC), Washington, D.C., lauded mortgage lenders during a recent conference for their commitment to minority homeownership and the industry's efforts toward diversity. But,...
Creativity and the Heartbeat of a Company
EVERY COMPANY HAS A CULTURE--some more pervasive and clearly identifiable than others. Whether by design or otherwise, these attributes often are linked to a company's image, success or even failure. Our company, Silver Hill Financial LLC, Miami,...
Cyclical Madness II
THIS IS THE FIRST TIME I HAVE WRITten a "follow-up" column. Last month's column sparked response that I had identified a problem without suggesting a solution. And that's true. The problem I discussed was the fact that some companies alternate...
Cyrus M. Brinn, Co-President, GHR Systems, Inc
AS CO-PRESIDENT OF GHR SYSTEMS Inc., Wayne, Pennsylvania, Cyrus M. Brinn is responsible for, among other things, GHR's business development, strategic planning, management of day-to-day business operations and overall management of GHR's sales and...
Defending the INDUSTRY
A handful of veteran lawyers say this industry falls victim to plaintiffs' attorneys more often than not because laws and regulations governing it are antiquated. Here's their brief on some thorny issues, including predatory lending laws, RESPA reform...
Defending the Industry: A Handful of Veteran Lawyers Say This Industry Falls Victim to Plaintiffs' Attorneys More Often Than Not Because Laws and Regulations Governing It Are Antiquated. Here's Their Brief on Some Thorny Issues, Including Predatory Lending Laws, RESPA Reform and Appraisal Fraud
THE INNOVATION THAT HAS TRANSFORMED THE mortgage industry in the last decade has far outpaced the dated infrastructure in place to govern it. Will it ever catch up? Probably not anytime soon, say a few who should know. That is the view of a handful...
Experts: Tria Must Address Evolving Private-Sector Threats
EVEN IF THE TERRORISM RISK INSURANCE ACT of 2002 (TRIA) is renewed or extended by Congress in one form or another, implementing an insurance backstop won't be the end of the problem but simply the beginning of the solution, a panel of experts concluded...
Experts: TRIA Must Address Evolving Private-Sector Threats
EVEN IF THE TERRORISM RISK INSURANCE ACT of 2002 (TRIA) is renewed or extended by Congress in one form or another, implementing an insurance backstop won't be the end of the problem but simply the beginning of the solution, a panel of experts concluded...
Favorable Hmda Data Quell Critics Somewhat
MORTGAGE LENDERS SHOULD REMAIN ON guard and ready to grapple with legal, regulatory and public-relations fallout following the release of the 2004 Home Mortgage Disclosure Act (HMDA) data. However, the generally industry-favorable data have helped to...
Favorable HMDA Data Quell Critics Somewhat
MORTGAGE LENDERS SHOULD REMAIN ON guard and ready to grapple with legal, regulatory and public-relations fallout following the release of the 2004 Home Mortgage Disclosure Act (HMDA) data. However, the generally industry-favorable data have helped...
Fbr Examines Alternative-Documentation Subprime Loans
THE HIGHER CREDIT SCORES AND LOWER loan-to-value (LTV) ratios of subprime mortgage loans with limited or no documentation should foster superior credit performance, concluded a report by Friedman, Billings, Ramsey & Co. Inc. (FBR), Arlington, Virginia.The...
FBR Examines Alternative-Documentation Subprime Loans
THE HIGHER CREDIT SCORES AND LOWER loan-to-value (LTV) ratios of subprime mortgage loans with limited or no documentation should foster superior credit performance, concluded a report by Friedman, Billings, Ramsey & Co. Inc. (FBR), Arlington, Virginia....
Fighting Mortgage Fraud
FIRST, THE BAD NEWS: MORTGAGE FRAUD is widespread in our industry today. The statistics tell a clear story. A USA Today article dated Oct. 4, 2005, stated that the Federal Bureau of Investigations (FBI) reported it has 642 cases of mortgage fraud in...
FROM Broker TO Banker
ARE A GROWING NUMBER OF MORTGAGE BROKERS MAKING THE SWITCH to mortgage bankers? * There are a number of reasons why such a move might be appealing. They include the ability to make more money per loan and gain greater control of the loan process. Being...
From Broker to Banker: Some Are Seeing a Pronounced Pickup in the Number of Mortgage Broker Shops Converting to Mortgage Bankers. A Whole Industry of Consultants and Warehouse Lenders Are Scurrying to Serve the Niche of the "Emerging Banker." Is This Just the Flavor of the Month, or a Lasting Trend?
ARE A GROWING NUMBER OF MORTGAGE BROKERS MAKING THE SWITCH to mortgage bankers? [??] There are a number of reasons why such a move might be appealing. They include the ability to make more money per loan and gain greater control of the loan process....
Good Timing
New tools are emerging to better time marketing efforts to catch consumers just as they start to shop for home financing. BY CHET WIERMANSKIFACED WITH AN UNCERTAIN EMPLOYMENT and salary growth picture with the recent hurricanes, plus the inevitable prospect...
Good Timing: New Tools Are Emerging to Better Time Marketing Efforts to Catch Consumers Just as They Start to Shop for Home Financing
FACED WITH AN UNCERTAIN EMPLOYMENT and salary growth picture with the recent hurricanes, plus the inevitable prospect of increasing interest rates through 2006, the outlook for first and refinanced mortgages looks shaky. Since peaking in the third...
Government, MBA, Lenders Continue Hurricane Assistance Efforts
FOLLOWING HURRICANE KATRINA AND ITS smaller cousin, Hurricane Rita, which devastated the Gulf Coast region, the public and private sectors, including MBA, continue to work in concert with the government to provide relief to storm-tossed victims. ...
Greenspan Sharpens Warning about 'Exotic' Mortgages
TAKING HIS RECENT WARNINGS ABOUT THE potential perils of the housing market up a notch, Federal Reserve Chairman Alan Greenspan declared that housing's apparent froth "may have spilled over into the mortgage markets" in the form of "exotic" home financing....
Greenspan Sharpens Warning about 'Exotic' Mortgages
TAKING HIS RECENT WARNINGS ABOUT THE potential perils of the housing market up a notch, Federal Reserve Chairman Alan Greenspan declared that housing's apparent froth "may have spilled over into the mortgage markets" in the form of "exotic" home financing.Addressing...
Housing Activity: Residential Structures (Thousands of Units, SAAR)
BYTYPE OF UNIT HOUSING STARTS BUILDING PERMITS Single- Multi- Single- Multi- Total Family Family Total Family Family SEP-04 1,912 1,586 326 2,039 1,671 368 OCT-04...
Hud Initiates FHA Lender Insurance Program
IN A MOVE LAUDED BY MBA, THE DEPARTment of Housing and Urban Development (HUD) announced another step toward streamlining the process for originating Federal Housing Administration (FHA) mortgages.FHA's new Lender Insurance Program will enable high-performing...
HUD Initiates FHA Lender Insurance Program
IN A MOVE LAUDED BY MBA, THE DEPARTment of Housing and Urban Development (HUD) announced another step toward streamlining the process for originating Federal Housing Administration (FHA) mortgages. FHA's new Lender Insurance Program will enable...
Hurricane Katrina's Impact Will Be Felt Nationally into 2006
THE IMMEDIATE NEAR-TERM ECONOMIC impact of Hurricane Katrina will be felt not just in the South, but nationally through the fourth quarter of 2005 and well into 2006, according to a special report by the Boca Raton, Florida-based Foreclosure Economic...
Hurricane Katrina's Impact Will Be Felt Nationally into 2006
THE IMMEDIATE NEAR-TERM ECONOMIC impact of Hurricane Katrina will be felt not just in the South, but nationally through the fourth quarter of 2005 and well into 2006, according to a special report by the Boca Raton, Florida-based Foreclosure Economic...
Identifying Risk in Many Forms
A FEATURED SPEAKER AT THE NHEMA Nonprime Forum & Trade Show, Dave Matthews, senior vice president, Federal Home Loan Bank, Chicago, discussed regulatory, compliance and technology issues facing the nonprime industry. According to Matthews, now...
Insurance Premiums a Growing Expense for Hotels
GIVEN THE IMPACT OF RECENT NATURAL DISasters as well as the continuing threat of terrorism, the hotel industry is concerned that the cost of insurance will continue to rise faster than other expenses in the future, according to an analysis by Atlanta-based...
Insurance Premiums a Growing Expense for Hotels
GIVEN THE IMPACT OF RECENT NATURAL DISasters as well as the continuing threat of terrorism, the hotel industry is concerned that the cost of insurance will continue to rise faster than other expenses in the future, according to an analysis by Atlanta-based...
Joining Forces
THE REAL ESTATE FINANCE INDUSTRY invests in communities, large and small, throughout the country. Our presence in all 50 states and thousands of cities, however, means we often have to contend with three levels of government regulation: federal, state...
Key Economic Indicators and Interest Rates
CONSUMER PRICES, MBA MORTGAGE YEAR-OVER-YEAR INTEREST RATES CHANGE IN CHANGE (%) (%) PAYROLL ALL ITEMS 30-...
MBA Supports Mortgage Broker Licensing in Ney-Kanjorski Bill
MORTGAGE BROKERS SHOULD BE SUBJECT TO uniform licensing standards as proposed in H.R. 1295, the Responsible Lending Act of 2005, to ensure greater accountability while making compliance easier for multistate brokers, Teresa Bryce, co-chair of MBA's...
MBA Supports Mortgage Broker Licensing in Ney-Kanjorski Bill
MORTGAGE BROKERS SHOULD BE SUBJECT TO uniform licensing standards as proposed in H.R. 1295, the Responsible Lending Act of 2005, to ensure greater accountability while making compliance easier for multistate brokers, Teresa Bryce, cochair of MBA's State...
Mers Suspends Foreclosures in Florida
MORTGAGE ELECTRONIC REGISTRATION Systems (MERS), Vienna, Virginia, has asked its members to temporarily cease foreclosure actions in the name of MERS in the state of Florida pending its appeal of an adverse ruling in the 6th Judicial Circuit Court in...
MERS Suspends Foreclosures in Florida
MORTGAGE ELECTRONIC REGISTRATION SYStems (MERS), Vienna, Virginia, has asked its members to temporarily cease foreclosure actions in the name of MERS in the state of Florida pending its appeal of an adverse ruling in the 6th Judicial Circuit Court...
Metavante to Grow Ghr Systems Following Purchase
LOOK FOR MORE OF THE SAME FROM GHR Systems Inc., Wayne, Pennsylvania, in 2006 following the company's acquisition by Milwaukee-based Metavante Corporation earlier this year-the operative word being "more," company officials told attendees of GHR System's...
Metavante to Grow GHR Systems Following Purchase
LOOK FOR MORE OF THE SAME FROM GHR Systems Inc., Wayne, Pennsylvania, in 2006 following the company's acquisition by Milwaukee-based Metavante Corporation earlier this year--the operative word being "more," company officials told attendees of GHR System's...
Mismo: First Companies Become Mxcompliance-Certified
MISMO®, A NOT-FOR-PROFIT SUBSIDIARY OF the Mortgage Bankers Association (MBA), launched MISMO extensible markup language (XML) Compliance (MXCompliance) for credit reporting in May.Since then, three companies from the credit reporting sector-Bixby Consulting...
MISMO: First Companies Become MXCompliance-Certified
MISMO[R], A NOT-FOR-PROFIT SUBSIDIARY OF the Mortgage Bankers Association (MBA), launched MISMO extensible markup language (XML) Compliance (MXCompliance) for credit reporting in May. Since then, three companies from the credit reporting sector--Bixby...
Mold Following Hurricane Katrina Poses a Problem for Cmbs Market
EXPECT THE PRESENCE OF MOLD FOLLOWING THE extensive flooding caused by Hurricane Katrina in New Orleans and in other areas affected by the storm to compound the loss experienced on a property in default, according to a report by Fitch Ratings, New York.While...
Mold Following Hurricane Katrina Poses a Problem for CMBS Market
EXPECT THE PRESENCE OF MOLD FOLLOWING THE extensive flooding caused by Hurricane Katrina in New Orleans and in other areas affected by the storm to compound the loss experienced on a property in default, according to a report by Fitch Ratings, New...
Mortgage Applications Indexes: Mortgage Bankers Association (MBA)
MARKET COMPOSITES (Unadjusted) Market Purchase Refinance FRM ARM Index Index Index Index Index SEP-04 652.4 429.7 1,947.6 459.0 4,701.1 OCT-04 680.0 429.0 2,139.5 466.3 ...
Mortgage Focus 2005
This sixth annual edition of Fannie Mae's industry benchmarking research shows the average cost to originate in all major production channels jumped in 2004. Also, 65 percent of surveyed lenders say mortgage fraud is a serious problem.IN A YEAR WHEN...
Mortgage Focus 2005: This Sixth Annual Edition of Fannie Mae's Industry Benchmarking Research Shows the Average Cost to Originate in All Major Production Channels Jumped in 2004. Also, 65 Percent of Surveyed Lenders Say Mortgage Fraud Is a Serious Problem
IN A YEAR WHEN VOLUMES DECLINED FROM PEAK levels, Fannie Mae's sixth annual Mortgage Focus benchmarking study of its seller/servicers showed that many lenders faced a difficult year marked by rising costs and falling productivity. The study also revealed...
Mortgage Origination Profits Plummet in 2004
MORTGAGE BANKING PRODUCTION PROFITS fell to $657 per loan in 2004 from $1,272 per loan in 2003, according to the Mortgage Bankers Association's (MBA's) annual cost study. As volume declined in 2004, per-loan operational costs increased and were...
Mortgage Origination Profits Plummet in 2004
MORTGAGE BANKING PRODUCTION PROFITS fell to $657 per loan in 2004 from $1,272 per loan in 2003, according to the Mortgage Bankers Association's (MBA's) annual cost study.As volume declined in 2004, per-loan operational costs increased and were only partially...
New Competition
American Brokers Conduit, Melville, New York, is giving established wholesale lenders a run for their money. This fast-growing new company has an impressive product line and an aggressive growth plan to build out its franchise.FOR A COMPANY THAT FOR...
New Competition: American Brokers Conduit, Melville, New York, Is Giving Established Wholesale Lenders a Run for Their Money. This Fast-Growing New Company Has an Impressive Product Line and an Aggressive Growth Plan to Build out Its Franchise
FOR A COMPANY THAT FOR ALL PRACTICAL purposes didn't exist until three years ago, American Brokers Conduit (ABC) has enjoyed remarkable success. [??] In the second quarter of this year, the Melville, New York-based firm dropped into the top-10 rankings...
People
BRUCE PARADIS HAS BEEN NAMED CHIEF executive officer of Minneapolis-based Residential Capital Corporation (ResCap), and David Applegate has been named chief operating officer of ResCap and president of its U.S. Residential Finance Group.Steve Adamson...
Pricing at the Point of Sale
Are lenders leaving loans on the table because of limitations in their front-end origination systems? Here's an argument for putting a pricing engine at the point of sale.MOST LENDERS TALK ABOUT CONVERSION OR PULL-THROUGH, INSTEAD OF sales, as a measure...
Pricing at the Point of Sale: Are Lenders Leaving Loans on the Table Because of Limitations in Their Front-End Origination Systems? Here's an Argument for Putting a Pricing Engine at the Point of Sale
MOST LENDERS TALK ABOUT CONVERSION OR PULL-THROUGH, INSTEAD OF sales, as a measure of business effectiveness. Conversion is the percentage of funded applications from total legitimate applications received. In a steady interest-rate environment, a...
Q2 Commercial/multifamily Mortgage Debt Outstanding Surpasses $2.4 Trillion
THE LEVEL OF COMMERCIAL/MULTIFAMILY MORTgage debt continued to grow during the second quarter of 2005 at a pace that rivaled previous records, according to a Mortgage Bankers Association (MBA) analysis of Federal Reserve Board Flow of Funds data. ...
Q2 Commercial/multifamily Mortgage Debt Outstanding Surpasses $2.4 Trillion
THE LEVEL OF COMMERCIAL/MULTIFAMILY MORTgage debt continued to grow during the second quarter of 2005 at a pace that rivaled previous records, according to a Mortgage Bankers Association (MBA) analysis of Federal Reserve Board Flow of Funds data.At the...
Real Estate Brokerage Settles Respa Violation Charges
A HAWAII-BASED REAL ESTATE BROKERAGE will pay HUD nearly $50,000 to settle complaints that the firm violated the Real Estate Settlement Procedures Act (RESPA).Prudential Locations LLC, Honolulu, agreed to pay $48,000 to resolve HUD's complaint that the...
Real Estate Brokerage Settles RESPA Violation Charges
A HAWAII-BASED REAL ESTATE BROKERAGE will pay HUD nearly $50,000 to settle complaints that the firm violated the Real Estate Settlement Procedures Act (RESPA). Prudential Locations LLC, Honolulu, agreed to pay $48,000 to resolve HUD's complaint...
Regulation AB Imminent: New Rules for Issuers of Public Securitizations
MY COLUMNS GENERALLY FOCUS ON financial advisory issues facing mortgage banks, but I occasionally cover regulatory topics and trends of interest to the industry. For this column, I will address Regulation AB (Reg AB)--comprehensive regulations regarding...
Servicing the Servicer
IN THE LAST FIVE YEARS, THE MORTGAGE industry has experienced significant changes, from record-low interest rates to the introduction of increasingly flexible loan products, to the remarkable efficiencies of new technologies. While these changes have...
Shopping Wisely for Technology
AS ADVANCED AS WE LIKE TO THINK we are, our industry still makes its share of mistakes. Most of them seem to be in the technology sector, or at least related to technology in some way. At least that's my perspective from years of participating in the...
Smart Growth
Growing a new wholesale operation is a tricky thing, especially since the channel is more prone to fraud. New entrants should follow these proven steps to make sure the brokers they sign and the loan packages they get from them are on the up-and-up.NEARLY...
Smart Growth: Growing a New Wholesale Operation Is a Tricky Thing, Especially since the Channel Is More Prone to Fraud. New Entrants Should Follow These Proven Steps to Make Sure the Brokers They Sign and the Loan Packages They Get from Them Are on the Up-and-Up
NEARLY TWO-THIRDS OF ALL MORTGAGES are originated through third-party channels, and this number shows no signs of easing up. In fact, The Prieston Group's mix of business has mirrored industry trends. And these trends have shown the wholesale channel...
South Residential Lenders-Top 30
First-Half 2005 / Sort Order: Total Loan Amount PURCHASE Share Share Number of of & of Rank Lender...
S&p Predicts Housing Bubble Fizzle
IT IS A MATTER OF WHEN, NOT IF HOUSE prices will dial back from the unsustainable pace of the past several years-but the real question is whether the socalled housing bubble will pop or just fizzle, according to New York-based Standard and Poor (S&P)...
S & P Predicts Housing Bubble Fizzle
IT IS A MATTER OF WHEN, NOT IF HOUSE prices will dial back from the unsustainable pace of the past several years--but the real question is whether the so-called housing bubble will pop or just fizzle, according to New York-based Standard and Poor (S...
The Future of Automated Decisioning
WHEN IT COMES TO INCREASING PROFITS, A MORTGAGE LENDER HAS THE SAME TWO options that any other business manager has: Increase sales or decrease costs. Time and again, in this industry and others, the effective application of technology has helped companies...
The Future of Automated Decisioning: The Subprime Market May Offer a Glimpse at Where Automated Underwriting Systems Are Headed. Loans Falling "Outside the Box" May Increasingly Get Done, as Lenders Learn to Use Risk-Scoring Technology
WHEN IT COMES TO INCREASING PROFITS, A MORTGAGE LENDER HAS THE SAME TWO options that any other business manager has: Increase sales or decrease costs. Time and again, in this industry and others, the effective application of technology has helped companies...
The Ticker
Ticker Price Close Price Close Company Symbol 9/30/05 8/31/05 IndyMac Bancorp Inc. NDE 39.58 39.83 Countrywide Financial Corp. CFC 32.98...
Top 30 Counties-Existing-Home Transactions
First-Half 2005, Nationwide / Sort Order: Number of Loans Market Avg. Rank County Count Dollar Amount Share Amount 1 LOS ANGELES, CA 93,627 $27,800,886,747...
Top 30 Counties-New-Home Transactions
First-Half 2005, Nationwide / Sort Order: Number of Loans Market Avg. Rank County Count Dollar Amount Share Amount 1 MARICOPA, AZ 26,937 $4,364,253,608 6.13%...
Turbo-Charged Broker Portals
THANKS IN PART TO A NEW GENERATION OF TURBO-CHARGED online broker portals, wholesale origination of loans is a rapidly growing business. According to February 2005 survey findings on production volume growth of the top 10 mortgage lenders in the United...
Turbo-Charged Broker Portals: Having Smart Decisioning Technology at the Front End, Where Brokers Can Price and Approve Borrowers, Is a Powerful Tool Wholesalers Are Using to Boost Volume
THANKS IN PART TO A NEW GENERATION OF TURBO-CHARGED online broker portals, wholesale origination of loans is a rapidly growing business. According to February 2005 survey findings on production volume growth of the top 10 mortgage lenders in the United...
Union Bank Rolls out Dorado Broker Platform
SAN FRANCISCO-BASED UNION BANK OF CALIfornia has rolled out San Mateo, California-based Dorado Corporation's Unified Point-of-Sale (POS) platform to its exclusive broker network. Leveraging Dorado ChannelMaster[R] and PriceMaster[R], the Dorado...
Union Bank Rolls out Dorado Broker Platform
SAN FRANCISCO-BASED UNION BANK OF CALIfornia has rolled out San Mateo, California-based Dorado Corporation's Unified Point-of-Sale (POS) platform to its exclusive broker network.Leveraging Dorado ChannelMaster® and PriceMaster®, the Dorado Unified POS...
Wholesale Mortgage Lending Online Is Growing
RETAIL MORTGAGE LENDING IN THE UNITED States may be a larger distribution channel than wholesale mortgage lending, but wholesale lending exceeds retail lending in terms of loan volume conducted online, according to a study conducted by Needham, Massachusetts-based...
Wholesale Mortgage Lending Online Is Growing
RETAIL MORTGAGE LENDING IN THE UNITED States may be a larger distribution channel than wholesale mortgage lending, but wholesale lending exceeds retail lending in terms of loan volume conducted online, according to a study conducted by Needham, Massachusetts-...
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