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. 75, No. 12, September

Affirmatively Furthering Fair Housing Rule: HUD's Role in Social Engineering?
WHILE EVERYONE IN THE MORTGAGE LENDING INDUSTRY was preoccupied with understanding the Truth in Lending Act (TILA)-Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule (TRID)--and preparing for its implementation--the Department...
All in the Family: At Five Brothers Default Management Solutions, Three Generations of Badas Work on Preserving the Legacy That Joe Bada Started 48 Years Ago
There never were five brothers at Five Brothers Default Management Solutions, the Warren, Michigan-based default management firm--only Joseph Badalamenti, aka Joe Bada, who started the company in 1967. [paragraph] But now there are a whole bunch of...
Authors: Upclose
Jim Deitch Jim is a lifelong resident of Pennsylvania, but he has 1 million air miles traveling both internationally and in the United States. He holds an M.B.A. in Finance, is a certified public accountant (CPA) and holds the Mortgage Bankers Association's...
A Whole Lot of Spending
Mortgage operations are reeling from elevated compliance costs these days. The evidence is everywhere. New rules and regulations have crept into every corner of the business. And it's substantially eating into net income. The chorus of concerns...
Clouding Up
THE "CLOUD" HAS BEEN A BUZZWORD for some time now, and the default servicing world is really just starting to explore this new technology paradigm. What many servicers and servicing law firms may not realize is that the right cloud-based case management...
CMBS Delinquency Rate Improves; Expected Losses Fall
The commercial mortgage-backed securities (CMBS) delinquency rate resumed its descent in July after a brief pause in June, reported Trepp LLC, New York. The delinquency rate for U.S. commercial real estate loans in CMBS dropped 3 basis points to...
Ellie Mae Posts Record Quarterly Revenue in 2Q
Pleasanton, California-based Ellie Mae saw record revenue of $65.9 million in the second quarter, up 65 percent from one year ago when revenues were $40 million. Net income was also strong at $7.6 million, which was up by 62 percent from the second...
Fannie Mae Reports $4.6 Billion in Net Income
Fannie Mae, Washington, D.C., reported net income of $4.6 billion in the second quarter and comprehensive income of $4.4 billion. With the positive results, the company will send another dividend payment to the Treasury of $4.4 billion, which is expected...
Forecast Hiked for Purchase Lending
There's no doubt the housing market has built solid momentum going into the second half of this year, when an expected interest rate hike will make home buying less affordable. The move to hike rates could occur as early as this month. The solid performance...
Freddie Mac: Opportunities in Small-Balance Lending
Small multifamily properties represent sizable share of the rental market, but small-balance lending programs are inconsistent and the secondary mortgage market participates little compared with conventional lending, according to Freddie Mac, McLean,...
Freddie Mac Posts Strong Second Quarter
Freddie Mac reported net income of $4.2 billion and comprehensive income of $3.9 billion in the second quarter. Net interest income continued to drive the company's financial results in the second quarter, coming in at $4 billion. The McLean, Virginia-based...
Home-Price Spotlight
HOME-PRICE SPOTLIGHT States Ranked Worst to Best By Foreclosure Rate (May 2015 Data--Includes District of Columbia) Foreclosure Foreclosure REO Rate Rate 12 Months Rate ...
Hotels Return Positive Results
The U.S. hotel industry reported positive results in three key performance metrics for the second quarter, reported STR Inc., Hendersonville, Tennessee. And hotel analysts, including Mark Woodworth, senior managing director with PKF Hospitality Research,...
Inside the Mind of a Millennial in the Mortgage Business
THE AGING OF THE INDUSTRY'S LOAN OFFICERS is a hot topic in the mortgage business. More managers are turning to millennials as a solution to refuel the workforce. In this special edition of The Right Stuffs "Inside the Mind of a Top Producer" series,...
June Home Prices Up by 6.5 Percent Year over Year
Irvine, California-based CoreLogic's June 2015 Home Price Index (HPI[R]) showed that national home prices rose by 6.5 percent in June compared with the year earlier. That was the finding for prices when including distressed-home sales transactions....
Lending Trends
LENDING TRENDS Top Origination Markets by Loan Volume (July 2015 Data, Ranked by Loan Volume) Consolidated Metropolitan Loan Loan Volume Average Statistical Area (CMSA)/ Count Loan Metropolitan Statistical...
Managing Your Loss-Mitigation Content
There may be a role for outsourcing when it comes to loss-mitigation communications with borrowers. But due diligence is key to making it work. As a former banker and credit union executive, I've had ample opportunity throughout my career to assess...
Marketrac[R]
MARKETRAC[R] Markets with Highest Share of Distressed Sales (May 2015 Data, Ranked by Distressed Sales %) Core-Based Statistical Short Sales RE0 Sales Short Sales Area (CBSA) (Average (Average (% of Total...
MBA Seeks Clearer Rules from CFPB
On July 31, the Mortgage Bankers Association (MBA) sent a letter to Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), asking the bureau to propose new rules, subject to a notice and comment period, on the CFPB's interpretation...
Mitigation or Litigation: It's Your Choice
IT'S NO SURPRISE that foreclosures on people's homes have been recurring flashpoints since America's recent mortgage crisis, and now the heat has been turned up on loss-mitigation processes. Increasingly, what sparks regulators' ire are issues surrounding...
Month in Review
Excellent news for homebuyers planning to purchase a home this fall: Fixed mortgage rates have improved as we head into September. In the past month, the 30-year fixed conforming average annual percentage rate (APR) dropped to 3.978 percent from 4.176...
Mortgage File Tracker
Percentage of Loan Files with 800 or More Pages (all loan types) 2011 2012 2013 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2% 2% 11% 16% 27% 22% 21% 20% The percentage of loans with 800 or more pages...
National MI Sees Solid Growth in 2Q
Even though the company reported a net loss for the second quarter of $10.4 million, NMI Holdings Inc., Emeryville, California, reported that its mortgage insurance company (National Mortgage Insurance Corporation), saw major growth in new insurance...
Nearing a New Dawn for Loan Quality
Can the news about loan quality get any better? Servicer after servicer has announced their delinquency rates are the lowest they have seen in ages; some go so far as saying they have virtually no delinquencies. [paragraph] Of course, others argue...
No Gatekeeper
IT'S ALWAYS SURPRISING TO HAVE A CLEAR AND UNOBSTRUCTED VIEW of Dave Stevens sitting at his office desk. Usually there are bodies. Lots of bodies. Blocking the line of sight. [paragraph] There are people talking to him. People waiting to talk to him....
Not Just a Pricing Engine
INTERNET USE WAS LIMITED by narrow bandwidth capacity when Ivan Darius and Larry Huff jointly founded Plano, Texas-based Optimal Blue LLC in 2002. Today the two men still work together as co-chief executive officers. But much has changed in the...
Q2 Commercial/multifamily Mortgage Originations Continue Strong Pace
The Mortgage Bankers Association's (MBA's) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations reported second quarter commercial/multifamily mortgage loan originations came in 29 percent higher from a year ago and 16 percent higher...
Q&A with Ed DeMarco: A Former Regulator of the Government-Sponsored Enterprises Talks about What's Needed in a Future Housing Finance System
Edward DeMarco, former acting director of the Federal Housing Finance Agency (FHFA) from September 2009 to January 2014, oversaw the operations of Fannie Mae and Freddie Mac as conservator during the critical time when the agency put in place policies...
Q&A with Thomas J. Ridge: An Interview with Former Pennsylvania Governor Tom Ridge That Covers Cybersecurity Threats and How to Guard against Them
This interview with Thomas J. Ridge, chief executive officer (CEO) of Ridge Global LLC, Washington, D.C., first secretary of the U.S. Department of Homeland Security and 43rd governor of the Commonwealth of Pennsylvania, took place originally at the...
Quicken Loans Tops J.D. Power Survey of Servicers
For the second year in a row, Detroit-based Quicken Loans Inc. scored highest for customer satisfaction in the 2015 U.S. Primary Mortgage Servicer Satisfaction Study[SM] published by J.D. Power, Westlake Village, California. The company has also won...
Reis: Construction Is Escalating-Quietly
While multifamily construction receives the most attention, other major sectors have also seen a quiet increase in construction, reported Reis Inc., New York. "Admittedly, this is predominantly due to office, but that sector was always likely to...
Seaport Industrial Real Estate Exceeds Expectations
Distribution center and warehouse occupancy levels have reached historic highs, while expensive construction and labor costs keep new development sparse in many seaport industrial real estate markets, reported JLL, Chicago. JLL analyzed the health...
Servicing That Builds Trust in the Hispanic Community
IN FEBRUARY 2013, the Consumer Financial Protection Bureau (CFPB) issued mortgage servicing rules under the Real Estate Settlement Procedures Act (RESPA), also known as Regulation X and Z. The documents published in the Federal Register totaled hundreds...
Sleuthing out Mortgage Fraud: In 2014, Overall Mortgage Fraud Risk Was Down, but There Are Plenty of Reasons to Remain Vigilant
Evolution in the residential lending market continued at a feverish pace in 2014 with a heightened focus on compliance risks and the adoption of new business practices fostered through regulatory mandates, such as the Dodd-Frank Wall Street Reform...
Small Talk
The Consumer Financial Protection Bureau has carved out special exemptions to its rules for small creditors. Yet it appears to have no carve-outs for small guys when it comes to enforcement. The bureau has cracked down equally hard on large and small...
The Fraud File
THE FRAUD FILE Mortgage Fraud Risk Index for June 2015--TOP 5 MSAs Metropolitan Statistical Mortgage % Change % Change Area (MSA) Fraud Risk Since June Since May Index, June ...
TRID and Its Effect on Appraisal Compliance
FOLLOWING A FLOOD OF COMMENTS from the appraisal industry, the Consumer Financial Protection Bureau (CFPB) chose not to address their concerns when finalizing the Oct. 3, 2015, effective date of the Truth in Lending Act (TILA)-Real Estate Settlement...
TRID: The Title Point of View
Welcome or not, all change has one thing in common: It is an opportunity either lost or gained. Resist it, and it will drag you down. Leverage it, and you can transform even imposed change into something better. Of course, I'm referring to the new...
Underwater Borrower Numbers Improving
Jacksonville, Florida-based Black Knight Financial Services (BKFS) reported that over the first five months of this year, the number of underwater borrowers dropped by nearly 26 percent. That compares with a drop of 20 percent during the same period...
Vital Statistics
VITAL STATISTICS Key Economic Indicators and Interest Rates CONSUMER PRICES, YEAR-OVER-YEAR CHANGE CHANGE IN UNEMPLOYMENT ALL ITEMS ALL ITEMS ...
Wells Fargo and Prospect Drop Marketing Services Agreements
On July 30, two leading home SS mortgage lenders discontinued existing mortgage marketing services agreements (MSAs) they had in place with real estate firms, builders and other referral sources due to regulatory compliance concerns. The two prominent...
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