Articles by ReverseReview Magazine

Compensation: One Statute Too Many?

Compensation: One Statute Too Many? Source: Lenders Compliance Group Blog BY: Jonathan Foxx, President and Managing Director As I've previously notified you, I am writing an article on the loan officer compensation requirements that are due to go into effect on April 1, 2011. While I have been writing the article, in the current environment some of our clients seem to be forming a sort of siege mentality. And I can't blame them, since there is so much confusion and, more substantively, the actual reading of federal staff commentaries to specific statutes in the revised TILA are causing them
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Exploring Barriers to Private-Label MBS Recovery

The Insurance, Housing and Community Opportunity Subcommittee of the Financial Services Committee held a hearing yesterday focused on identifying government barriers to the housing market recovery.  Michael Farrell, Chairman, CEO and President of Annaly Capital Management, Inc, testified about the reasons private-label securitization has been unable to restart. Annaly, according to Farrell, is the largest residential mortgage Real Estate Investment Trust (REIT) on the NYSE, and the company along with their subsidiaries own or manage approximately $100 billion of residential mortgage-backed securities. From his direct testimony, Farrell laid out four reasons why from his perspective, private-label market is stalled.
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RMI Indstry Trends: View From the Top

In their final Industry Trends report for 2010, Reverse Market Insight (RMI) highlights the growing command that the top ten lenders have taken in terms of market share.  After hovering in much of 2009 around 40%, market share of the top ten steadily increased in 2010 reaching a peak of 64.7% in December.   Several factors have contributed to this shift.  Obviously, consolidation is a major consideration, along with contraction.  As the number of active lenders have decreased 47.2% in 2010, volume has concentrated towards the top.  This is understandable as the theory would suggest that displaced originators who
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CoreLogic: NAR Sales Data Overstated

In the latest release of their U.S. Housing and Mortgage Trends report, CoreLogic stated that home sales in 2010 declined to the lowest level since the collapse in the housing market and that home sales reports from the National Association of Realtors (NAR) are overstated by about 15% to 20%. The report pointed to price declines driven by a large imbalance between supply and demand and an increase in distressed sales.  Although, non-distressed sales saw an increase in prices of 7% (primarily fueled by purchase incentives), there continues to be downward pressure on prices as a result of a
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AARP Comments on Budget Proposal

In response to the budget proposal released by the Obama Administration earlier this week, AARP Executive Vice President Nancy LeaMond applauded protection for seniors' access to doctors, but raised concerns about disproportionate cuts to home energy assistance for low income Americans. “The coming budget debate must balance the serious challenge of putting our country’s fiscal house in order," LeaMond stated, "while also addressing the needs of millions of Americans who are struggling to find employment, strengthen their retirement nest eggs, and pay for rising health care costs"   Controlling health costs is a concern of the government and cuts
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HUD Secretary Comments on Housing Finance Report

In support of the Obama Administrations new report on housing finance reform, HUD Secretary Shaun Donovan laid out his perspective  on the department's blog site.  Stating that the Administration's work in stabilizing the housing market, now turns to reforms that will reduce the government's role in the mortgage finance market while maintaining a range of affordable housing options including home purchasing and rental programs. Secretary Donovan laid out four primary areas that are the initial focus of the Administration's report: Reforming and strengthening the FHA Provide targeted, transparent support for affordable rental housing Help ensure that capital is available
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Administration Releases GSE Reform Report

The Obama Administration, via the Department of the Treasury and the Department of Housing and Urban Development (HUD) finally released their much anticipated report to Congress, entitled, "Reforming America's Housing Finance Market." The report calls for a dramatic transformation of the government's role in the housing market.  "Going forward, the government's primary role," the report's introduction states, "should be limited to robust oversight and consumer protection, targeted assistance for low- and moderate-income homeowners and renters, and carefully designed support for market stability and crisis response."    To achieve its goal, the plan calls for the role of Government Sponsored
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Retail Growth Continues to Trump Wholesale

The final Wholesale Leaders Report for 2010 from Reverse Market Insight (RMI) revealed the second consecutive month that retail endorsement activity out paced wholesale endorsements in terms of percentage growth.  For the final month of 2010, retail endorsements grew by 8.5% to 4,343 units, while wholesale fell by 13.3% to 2,207.  Total endorsements were flat from November to December. The chart below demonstrates the shift in 2010 between retail (blue) and wholesale (yellow)   The variation of total units marks a year where there was a power shift between the channels.  In January of 2010, wholesale out produced retail
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Financial Services Committee to Review LO Compensation

In their Oversight Plan for the One Hundred Twelfth Congress, the Financial Services Committee includes plans to review the loan originator compensation rules due to take effect on April 1, 2011.  With the opening of each new Congressional session, each committee is required to file their Oversight Plan, which lays out their legislative agenda for the new session. Following calls by the Mortgage Bankers Association, National Association of Mortgage Brokers and the Small Business Administration to the Federal Reserve asking for additional guidance and potential delay of implementation of the compensation rules, the Oversight Plan calls on the committee
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ABA Supports Well-Regulated Private Housing Market

The American Bankers Association (ABA) sent a letter to Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan sharing its latest recommendations for the future of Government Sponsored Enterprises.  With the Obama Administration due to release their recommendations on GSE reform later this week, the ABA felt it necessary to express their opinions on the steps that government should take in reshaping the housing finance market. The letter calls for a housing finance market that fosters and encourages a private market with a government role that is limited to ensuring stability and accessibility in the event
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