Jacob Gaffney is the Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s). At HousingWire, he began focusing his journalism on all aspects of the housing and mortgage markets.
Looking for some good lending news during a downturn? LendingLife has your back. Yes, it is true that rates are rising, per loan profits are down, credit feels tight and refinances are dipping. But, the good news is that the perception of homeownership as a good investment is on the rise. And that's not the only good news for lenders right now.
So BofA is still doing mortgages, just the way in which they’re now categorized is “immaterial”? Such language comes as no surprise to loan officers. It didn’t take me long to find one who has a problem with Bank of America. In a message on LinkedIn, the LO tells me that, as a loan officer who has been on both sides — wholesale and retail — she’s never had a good experience with Bank of America. Here's why.
According to its Annual Mortgage Bankers Performance Report, independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $711 on each loan they originated in 2017, down from $1,346 per loan in 2016. That only puts half a dinner on the table and this is not good at all.
“As our business continues to grow, we are developing new ways to meet the needs of the market—and new leaders to address these opportunities,” said David Brickman, executive vice president and head of Freddie Mac Multifamily, about the promotions.
The appraisers I speak to paint the AMCs as part of some large conspiracy to nickel-and-dime their way to big profits. The AMCs I speak to believe they are vital to maintaining the arms-length regulatory requirements set forth by Dodd-Frank. Are the AMCs hiding something? Maybe, maybe not. But, there is certainly something missing.
When commissioning an appraisal, do AMCs provide a better valuation to mortgage lenders? The FHFA says no and AMCs are not happy: "Our review of the research has uncovered real concerns about the methodology, measures of quality, errors and the insertion of staff opinion that seems to indicate bias."
Speaking to the mortgage loan officer community on YouTube, Mat Ishbia said: "So this is good for all of us, we want these firms to come and disrupt it, and come up with a new way to help you with a Realtor, to help you with a consumer, help us with valuations. We need this, we all need this. The jury basically validated these technology firms have a place in our industry.”
Last week readers of LendingLife got a first look at the Veros, Valligent partnership promising to cut mortgage lending cost.
In that article, it's written that a big part of that cost savings would be taking the legwork out of valuations.
More importantly, the news set off some responses from LendingLife readers, not just on the partnership, but on the state of the valuations industry as a whole.
mello opened its HQ this week, its “Innovation Lab” as loanDepot puts it, out in Irvine, Calif. And what a launch it was. In fact, if other mortgage lenders want to claim to be in support of digital-first loan services, they'll need one of these to even be taken seriously.
The large nonbank mortgage lender and servicer, Mr. Cooper, is used to onboarding huge portfolios of loans. By its own admission, such a process can be confusing and stressful. So with that in mind, the Mr. Cooper team developed what they call the “Red Carpet Initiative.” Here's how it works.
This year’s HW Tech100 features a much more expansive landscape than ever before. Winners included heavy hitters and innovative disruptors. Even new tech players in the blockchain space are joining the party now. Other exciting developments can be seen on the identity-protection and fraud-prevention sides. But make no mistake, the name of the game in tech, these days, is lending, lending, lending.
The evolution from a paper-based process to this era of big data is astounding. Consider that according to IBM, 90% of the world’s data has been created in the last two years. The Internet of Things — your thermostat, refrigerator, even your kid’s Barbie doll — is increasing that data exponentially. For mortgage companies, that data represents a treasure trove more valuable than the gold bars stacked in the vault at the New York Federal Reserve Bank, but only if they can figure out how to harness it for their specific business. Fortunately, scores of fintech companies are ready to help.
Accurate, trustworthy valuations require taking a deeper look. That’s why it’s important to have a valuation expert independently review every valuation report and determine whether it makes sense. The most trustworthy valuation providers have a team of highly trained reviewers on staff who diligently analyze every comparable on a valuation report and ask: “Will a potential buyer consider this property similar to the subject property?”