UBS Real Estate Securities suffered a major setback recently when US District Judge, Kevin Castel, ruled on a breach of warranties by UBS in connection with securities backed by loans sold to U.S. Bank. In the suit, US Bank, acting as trustee, is suing UBS for damages of more than $2 billion (Defective Loans). That could have paid for quite…
Some now believe that independent mortgage lenders cannot survive strictly by originating mortgage loans. They believe such lenders need to expand their business lines to include other financial products desired and needed by consumers. (Survival) For years, large Banks have moved in and out of mortgage lending depending on rates and risks, developing and offering other financial products and services…
According to the Urban Institute, a Washington DC based “think tank”, the current low mortgage default rates could indicate the current credit standards make it too difficult for many consumers to get their shot at the American Dream. (Mortgages) Why is it that lenders are the ones to get the blame when the homeownership rate is not where it is…
Way too many years ago, when I first started in the mortgage business, the emphasis was still on loan originations. But, it was also on the loan’s ongoing performance. Lenders originated but most also serviced the loans they made. Independent Mortgage Lenders and some Banks originated government loans that were sold into Ginnie Mae pools. Other Banks and S &…
Mortgage Brokers rose to prominence in the era of subprime lending. Their flexibility to react to the opportunities presented by this market provided both them and many lenders with a new line of business, and profits. Since then, the Mortgage Broker has become a staple in the mortgage origination process providing correspondent and wholesale lenders with a steady stream of…
It seems lenders are finding that the new loan programs offering a minimum of only a 3% down payment aren’t attracting buyers and boosting homeownership among potential low to moderate income home buyers as everyone had hoped. (Low Down Loans) Why not? Some think it’s because of a lack of information, education and understanding about the availability of these programs.…
