News

Two Harbors bailing on jumbo bonds already impacting mortgage market

Ripple effect already takes down one jumbo originator, for now
Two Harbors Investment Corp. shocked the mortgage industry Thursday when it announced that it planned to shutter its mortgage loan conduit and securitization business. But what about the loan originators that turned to Two Harbors to buy jumbo loans? What happens to them now that there’s one less buyer and securitizer of jumbo mortgages in the market?
Read More

DOJ loses another top cop on mortgage fraud

U.S. Attorney for the District of Colorado John Walsh stepping down
The Department of Justice is about to lose another one of its top cops in its fight against mortgage fraud. The DOJ announced Friday that John Walsh, the U.S. Attorney for the District of Colorado and the co-chair of the DOJ’s Residential Mortgage-Backed Securities Working Group. While with the DOJ, Walsh played a key leadership role in securing a $7 billion settlement with Citigroup over residential mortgage-backed securities and collateralized debt obligations.
Read More

NAR: Proposed TRID changes a "significant victory"

Answers to the Closing Disclosure form are here
The National Association of Realtors secured a victory in the changes announced Friday to the much-anticipated Consumer Financial Protection Bureau Know Before You Owe rule. The bureau gave much more concrete explanations for one of the biggest problem areas — the closing disclosure.
Read More

Guardian Mortgage parent company merging with Sunflower Financial

Strategic Growth Bancorp joins parent company of Sunflower Bank
In a move that will create the third largest banking institution headquartered in Colorado, Sunflower Financial, the parent company of Sunflower Bank and Logia Portfolio Management, and Strategic Growth Bancorp, the parent company of First National Bank of Santa Fe, Capital Bank and Guardian Mortgage Company, announced plans to merge.
Read More

Community lenders: We should be exempt from CFPB exams and primary enforcement, too

Just like most banks already are
The Community Home Lenders Association believes that small non-bank mortgage lenders should be exempt from the Consumer Financial Protection Bureau's exams and primary enforcement, just as most banks already are. Here, the organization explains why and discusses why that exemption would help small lenders better serve consumers.
Read More

Dallas homebuilding values shift dramatically

More expensive homes being built
New home starts in Dallas may be up, but it won’t help the affordability crisis as homebuilders made a dramatic shift in the type of homes they are building. Instead of building affordable homes, new home starts are increasing in the higher price ranges.
Read More

CFPB will update Know Before You Owe rule

Here's everything in the works right now
Staying true to its announcement three months ago, the Consumer Financial Protection Bureau released a set of proposed updates to its Know Before You Owe mortgage disclosure rule after industry calls asked for greater clarity and certainty on the rule. However, the changes, while welcomed, don't address everything the industry asked for.
Read More

Consumers unsure about economic conditions

Consumer sentiment decreases in July
Consumer sentiment decreased in July from last year as well as last month. Some of the decrease can be credited to Brexit, and near the end of July consumers became more optimistic about the state of the economy.
Read More

Paltry GDP growth shows economy is "barely above water"

Residential construction fell due to weaker single-family housing starts
“Over the past 12 months, the economy has expanded by only 1.2%,” Paul Ashworth, chief economist at Capital Economics, said. “What is really worrying is that pace has still been enough to reduce the unemployment rate further, suggesting that the economy’s potential growth rate could conceivably be close to zero.”
Read More