Wholesale Conditions Better, But U/W Still Tough
A wholesale lending "renaissance" is on, according to one executive. And improving rates have forced at least one wholesale lender to increase minimum lock periods to 45 days. Meanwhile, wholesale lender underwriting overlays are a troubling trend for third-party originators.
Wholesale mortgage lenders are more frequently issuing their own underwriting overlays in addition guidelines established by Fannie Mae and Freddie Mac -- a trend one industry insider said "makes things way, way more complicated and ultimately confusing for industry and consumers."
In a recent table of conventional overlays, Bank of America Home Loans Correspondent Lending listed more than 80 overlays.
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Wholesaler Launching
A company that originates more than $3 billion a year in retail business is launching a third-party channel that will focus on government programs. The expansion into the mortgage broker arena follows similar moves recently by other wholesale lenders.
Banks Face Less Competition as Brokers Exit
In Indiana, the number of licensed mortgage brokers has fallen by nearly three quarters during the past five years. The decline was precipitated by falling home values and rising regulations. Banks appear to be the beneficiaries of the fallout.
The Conference Calendar
Issues being addressed at upcoming mortgage events include loan officer compensation, the future of mortgage servicing and selling loans to the Federal National Mortgage Association. Mortgage brokers weighed in on the goverment sponsored enterprises during a recent event. The premier mortgage banking event of the year is just around the corner.
Allied Settles Branch Billing Discrepancies with HUD
Allied Home Mortgage Capital Corp. has agreed to settle allegations by the U.S. Department of Housing and Urban Development of billing discrepancies at its branches. The settlement by the self-proclaimed biggest mortgage broker follows the loss of FHA approval at one of its branches earlier this year and a scathing news story last month about the branch operator.
Brokers Liable for Fees on Early Payoffs at Wells
Mortgage brokers can be required to return the fees and overages they earned on a closed loan if that loan is paid off or refinanced shortly after origination, according to a new policy from Wells Fargo & Co.'s wholesale lending unit.
Brokers Cheer Fed Rule
Mortgage brokers hailed the Federal Reserve Board's final rule on loan originator compensation.
New Warehouse Program for Small-, Mid-Sized Firms
Small- and medium-sized originators are the target of a financial services company that has a new warehouse lending product. The new offering helps mortgage brokers make the transition to mortgage banker.
Non-Bank Originators On SAFE
Mortgage operators in California see good and bad to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.
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Brokers Warn of Job Losses
Mortgage brokers warn that they will be laying off employees as a result of new requirements under financial regulatory reform legislation passed by Congress this week. At issue is dual compensation -- where the borrower pays some of the loan fees and the wholesale lender pays some of the fees. But brokers and lenders will have another chance to impact the regulation through the rulemaking process.
