Items Tagged with 'Payments'


  • Servicers: Are you leveraging omnichannel payment solutions?

    This HW webinar explains how a comprehensive payment strategy can impact your business
    As consumers demand more options in the mortgage industry, the value of omnichannel payment solutions also grows. There is some stigma in the mortgage industry behind self-service payment options, mainly due to the fear of increased fraud risk and a loss of control over payments. But experts in payments understand the power self-service payment options have in customer satisfaction and operational efficiencies.
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  • Is a balloon mortgage ever worth it?

    Still, there's a big risk to consider
    The Motley Fool just published a post about an interesting topic. Should the once-popular mortgage lending product — the balloon mortgage — make a stunning return to the market?
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  • Placing prepayment penalties on the Christmas table

    It's the time of the year in mortgage finance to begin developing our resolutions. After a year that saw more and more money being pumped into the economy it's about time everyone started looking at stimulus options, no matter how small, that don't involve a taxpayer backstop. Indeed, politicians seem to spend taxpayer dollars at will and after a challenging year, 2011 needs to find a period of austerity.
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  • GSE Pass-through Players Gird for the New Year

    Two major concerns for value hang over the pass-through market right now: the anticipated end to the Fed's MBS purchase plan March 31, 2010 and the likelihood of a sharp jump in involuntary prepayments in GSE pass-throughs (due to modifications and other foreclosure avoidance efforts and foreclosures, which trigger a buyout of the loan from the pool). Those buyouts may be facilitated after January 1 by the Fannie and Freddie's adoption of FAS 167.
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  • Mortgage Apps Drop as Rates Rise: MBA

    Rising rates helped push consumers out of the market for a mortgage, according to statistics released Wednesday by the Mortgage Bankers Association. The group's weekly application survey found that a composite index fell 1.5 percent to a seasonally-adjusted reading of 425.9 for the week ended Aug. 8; applications are down a whopping 36.9 percent versus year-ago levels.
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  • Extend Those Durations, Mortgage Maxx Warns MBS Investors

    Prepayment data service Mortgage Maxx AFS warned MBS holders last week that prepayment rates should sag over the summer -- and through year end, as well, if expectations for higher mortgage rates are met. "Mortgagors are having a hard time seeing the Fed's alpha this easing cycle," said Paul Descloux, Mortgage Maxx AFS chief, pointing out that the majority of loans made since 2003 have no incentive to refinance at current rate levels. Tougher credit standards and falling asset values provide further drag on prepayments activity, he said in a note to subscribers.
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  • Prepayment modelers can't keep up

    A secondary mortgage market expert I think extremely highly of emailed me last night with the following terse take on the state of the financial markets: I think we're on the cusp of another sewer break on the news front ... get your waders on ...
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  • Mortgage Applications Fell Dramatically Last Week: Report

    Mortgage applications fell sharply last week, according to a long-standing index traditionally used by prepayment researchers on Wall Street. The Mortgage Maxx Advance Factor Service reported that overall application activity fell 7.8 percent to 137.2 during the week ended May 30. That drop in activity is adjusted for seasonality and the holiday-shortened business week; unadjusted, the index would have been down 26.2 percent to 109.7, the company reported.
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  • New Hedge Fund Looks to Take Advantage of Slowing Prepayments

    While a number of hedge funds are looking to jump into non-performing residential mortgages, others are looking for opportunities of a different kind within the larger mortgage market. One case in point is Stamford, Conn.-based Structured Portfolio Management, which manages roughly $1.2 billion in investor assets; the firm is betting that slowing prepayment speeds represent at least an intermediate-term trend, and has launched a new hedge fund designed to profit from it.
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