How far can lenders push the credit box?

How far can lenders push the credit box?

Watt announcement helps, but risk keeps standards tight

Warren calls for GAO investigation of nonbank servicers

Asks GAO to review “unprecedented” growth of nonbank servicers

Freddie Mac CEO: We will help increase mortgage lending

Competition among two is still competition
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News

PulteGroup 3Q net income drops to $141M

“We are encouraged by proposed changes at FHFA”
Brena Swanson
"By remaining disciplined in our construction and land investment practices, we continue to improve our returns on invested capital while positioning the Company to take advantage of market opportunities,” said Richard Dugas, Jr., chairman, president and CEO of PulteGroup.
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RealtyTrac: Seriously underwater homes hit 2-year low

But it’s not all positive news
Brena Swanson
“The decrease in underwater properties is promising but the estimated $1.4 trillion in negative equity means that the flood waters are not receding as quickly as they were before, corresponding to slowing home price appreciation,” said Daren Blomquist, vice president at RealtyTrac.
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Home-value growth peaks; cooling market puts bubble fears to rest

Zillow: Home value rate of growth easing down
Trey Garrison
Appreciation in home values is slowing definitively after nearly two years of accelerating year-over-year growth, according to the third-quarter Zillow Real Estate Market Report.
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Barclays joins chorus with Ocwen warning

“Investors should be wary of a worst-case scenario”
Ben Lane
Barclays tells clients that while it may take time to determine the true extent of the practices Lawsky alleges Ocwen took part in, investors in non-agency residential mortgage-backed securitizations “should be more wary of a worst-case scenario,” when it comes to Ocwen.
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CoreLogic revenue rises $18.1 million in 3rd quarter

Marks second quarter of increasing revenue
Ben Lane
Citing growth in its data and analytics division and a shifting business plan, CoreLogic reported an increase in revenue from $349.4 million in the second quarter to $367.5 million in the third quarter.
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HUD’s Castro and Sen. Heitkamp visit Indian Country

Survey unique housing needs on Indian reservations
Trey Garrison
HUD Secretary Julián Castro and U.S. Senator Heidi Heitkamp visited Belcourt to view housing challenges with black mold and overcrowding on the Turtle Mountain reservation, and toured Williston to examine the city’s rapidly expanding housing and infrastructure developments.
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SEC approves risk retention rule, pending Fed approval

Industry continues to weigh in
Brena Swanson
The Securities and Exchange Commission approved the final version of the risk retention rule that would require banks to retain at least 5% of the risk on their books when securitizing loans. Now all that is left is approval from the Federal Reserve.
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$1 billion in MSRs just became available

Loans backed by Fannie Mae and Ginnie Mae
Ben Lane
The portfolio features 97% fixed-rate and 100% first-lien product, a weighted average original FICO score of 716, a weighted average original loan-to-value ratio of 86%, and a weighted average interest rate of 4.53%, MountainView said.
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Fannie Mae names Brian Brooks EVP, general counsel and corporate secretary

Joins from OneWest Bank
Ben Lane
“Brian has an impressive background in business and law, and is deeply credentialed in financial services and housing finance,” said Timothy Mayopoulos, president and chief executive officer at Fannie Mae. “Brian is an outstanding complement to our leadership team as we focus on supporting the economic recovery, improving our company, and building a sustainable housing finance system.”
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Warren calls for GAO investigation of nonbank servicers

Asks GAO to review “unprecedented” growth of nonbank servicers
Ben Lane
Senator Elizabeth Warren, along with Congressman Elijah Cummings, sent a letter this week to the U.S. Government Accountability Office, requesting an investigation into the risks posed to consumers by the “unprecedented” growth in nonbank mortgage servicing.
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