Government-Controlled Lender Backing Away from Gov Mortgages
Despite the controlling stake in Ally Financial Inc. held by the U.S. government, the lending giant will pare back its government mortgage originations. The move follows a decision to wind down a securitization unit and layoff traders and analysts.
New No. 2 Reverse Lender
As the leading reverse mortgage lender saw a decline in monthly originations, the third-biggest lender leapt past the second-biggest company to become the new No. 2. Government insured reverse mortgages originated through the wholesale channel were stronger on a month-over-month basis, but retail activity drifted down.
ING Exits 3rd-Party Originations
The mortgage broker and correspondent lending origination channels at ING Mortgage are shutting down. The move follows the recent acquisition of the company's parent.
2 Financial Institutions Fail
Two financial institutions, one with more than $800 million in assets and another with less than $1 million in assets, were seized by regulators. One was liquidated, and the other was acquired.
Banks Raise Mortgage Investments, Balloon Share & LTVs
A new report indicates that U.S. financial institutions are diverting mortgage originations from private conduits to their own portfolios. The report also found that the company that acquired the biggest share of banks' third-party business last year wasn't even among the five-biggest players two years ago. Meanwhile, balloon originations and loan-to-value ratios are increasing.
Another Georgia Bank Goes Down
Including one of two bank failures last week, more than a quarter of all federally insured banks to fail this year have been in Georgia. In all, four financial institutions were closed down last week. Meanwhile, a third-party lender has re-entered a market that it recently exited.
LOS Enhancements Benefit Traditional, CRE & Reverse Originators
Recent enhancements to loan origination systems include features that help simplify loan origination commission calculations, avoid fallout from cyber-criminals and comply with agency lending requirements as well as other mortgage regulations. Among several mortgage firms to implement new LOS technology were a third-party lender, a commercial real estate lender and a reverse mortgage lender. |
