Fifth Third Bancorp welcomes a new executive to lead it mortgage department. This is the same lender that announced a new zero down payment mortgage program earlier this month. Edward Robinson comes to the position prepared, bringing a solid track record of success in a variety of challenges and roles.
Fifth Third Bancorp will pay $85 million as a part of settlement with the federal government over allegations that the bank failed to self-report mortgages it knew to be defective, causing millions of dollars in losses to the Department of Housing and Urban Development.
Meet Kevin Taylor. In 2013, he left his position running mortgage-backed securities trading desk at Fifth Third Bank to start Mariemont Capital. And according to a report from the Cincinnati Business Courier, Taylor is finding success investing in residential mortgage bonds and delivering big returns for his investors.
"While this was an extremely difficult decision to make, we intend to build on our leadership position in the correspondent market and remain committed to purchasing loans from smaller financial institutions and independent mortgage companies," mortgage head says in letter.
These risks are real. For example, even if interest rates were to fall, mortgage originations may also fall. Any increase in mortgage originations may not be enough to offset the decrease in the MSRs value caused by the lower rates, the bank states.
The Federal Deposit Insurance Corp. continued its recent "freaky Friday" streak last week, stepping in at Bradenton, Fla-based Freedom Bank, after the Commissioner of the Florida Office of Financial Regulation closed the bank on Friday after market close. All deposits of the failed bank will head over to Grand Rapids, Mich.-based Fifth Third Bank, the FDIC said.
People shouldn’t be worried about the 3% down program. The FHA, USDA and VA have been doing it for years, and with the right guidelines and criteria in place these are great for borrowers. Whatever is best for borrowers and prudent lending standards is what all lenders and originators should be looking to offer.
If you live in Silicon Valley and are one of the region’s numerous millionaires or even billionaires, thanks to a ton of recent tech company IPOs, bringing the perks home is easy. One expert says the increase in IPOs is actually driving residential values in Silicon Valley.