So far 2014 is turning into a mixed bag for nonbank financial firms focused on the mortgage sector. And it's not likely to change given the current regulatory attitude that amounts to nothing short of the legalized extortion of the mortgage business.
So if you are in an auction with a bunch of stupid money who just want to put assets to work and thereby earn a management fee, do you bid aggressively – above the true value of the assets – or do you stand back and let the clown win the auction?
Federal Reserve Chair Janet Yellen achieved the primary goal of any new Fed chief and avoided any obvious land mines. But what was lacking in the dialogue, both from Yellen and the media, was a serious discussion of what’s next for national economic policy.
Recent data from the Mortgage Bankers Association shows the extent of the collapse of new applications for mortgages. The numbers are down 60% annually and reached a 13-year low. However, higher interest rates are not the chief reason for poor mortgage market performance by a long shot.
The headlines in most news stories and economic commentaries indicate that the housing market is continuing to improve and with it the U.S. economy. But if you dig into the numbers a bit, the reality in the housing market is a good bit more subtle than the headlines suggest.
A financial industry publication recently reported, “Carrington Mortgage, Citadel Servicing and New Penn Financial are planning securitizations of newly originated subprime mortgages.” The publication went on to say in breathless tones that “[t]he offerings, on the slate for 2014, would confirm recent predictions that deals would soon start flowing in the asset class…”
As we approach January 2014, the entire mortgage lending industry is braced for impact in terms of compliance and operational issues related to the Dodd-Frank reform law. The “qualified mortgage” or QM and “qualified residential mortgage” or QRM designations related to mortgage lending now define the outer limit of risk taking for many bank lenders.
The implementation of new rules and regulations affecting the housing sector has been underway for several years, driven by Basel III, the Dodd-Frank Act and revisions to existing law. How this tangle of conflicting limitations and incentives is affecting the housing sector is something laymen only partially understand. Although the brave new supervisory regime pretends to protect consumers...
Wow! That was our reaction to the response we received for this year’s HW TECH100 call for nominations. This year, more than 250 companies submitted a nomination, and we’re grateful for the interest in our efforts with this unique program..
In the tech world a “stack” refers to all the elements of something. For the mortgage industry, the idea of the single stack is that one platform (digital, automated and based in the cloud) can either meet all of the functional requirements involved in assembling a mortgage, or can serve as an efficient moderator for the process via open APIs (application programming interface), which are now taking off within the mortgage industry. Read More
Nothing reeks of hypocrisy more than the regulator ignoring regulations, but the CFPB has racked up plenty of violations in the last year. And we’re not talking about small, nitpicky examples, but instances that have real-life consequences. If a lender or servicer were to violate any of these standards, they could expect swift and harsh punishment from the CFPB. Read More