There is serious talk of a potential rate hike coming as soon as September. Hey, that’s less than a month away, and signals the end of the summer. Bummer! Insiders believe the chances of this rate hike are running at just above 50% (Rates). Wait, that also means there’s about a 50% chance that rates won’t rise. What do you…
The Buyers are Coming!
According to a recent Fitch Ratings report, we should be seeing more buyers in the upcoming months. This due, in part, to a steady easing of credit underwriting standards by banks and independent mortgage lenders, coupled with certain other factors (Buyers). The easing of credit standards, coupled with historically low interest rates, the slowing in the rate of home price…
Credit Standards Easing
A recent survey of senior loan officers (are there any others?) shows that credit standards for mortgage loans are loosening up a little. This easing is not in the government or subprime loan markets but rather in the areas of QM jumbo loans (Credit). Many banks shy away from FHA lending and sub-prime loans. Although Independent Mortgage Lenders believe these…
Marketing Services Agreements – Under Fire
CFPB has made it clear they do not like Marketing Services Agreements (MSAs). Although such agreements have become somewhat commonplace in the mortgage industry, CFPB is taking a new look at them and doesn’t like what it sees. When MSAs first surfaced several years ago, HUD issued some guidance which is used by lenders and service providers to gauge the…
Are you prepared to significantly reduce your Post Closing QC reviews processing time?
HUD/FHA’s draft “Origination Through Post-Closing/Endorsement Handbook”, states that loan transactions must be selected for post-closing reviews on a monthly basis with the selection comprising loans closed in the prior month. The loans that are selected for review must be processed within 60 days from the end of the prior one-month period. This is quite a reduction in processing time from…
Millennials Finally Getting Off the Fence
Let’s start with a bit of good news. Recently, the MBA increased its estimates for mortgage originations by $71 billion for 2015, and by $94 billion, to $885 Billion, in 2016. As my grandfather might have said, “Wow, thatsa a lottsa moola!” According to Mike Fratantoni, MBA’s Chief Economist, presently there are more home sales being financed, with more loans…