You’ve probably seen the commercials on TV with a bank security guard or a guy looking like a dentist, where they say they are just a ‘monitor’ but don’t do anything about what they find. It’s funny for a commercial, but not so funny to the bank or the patient needing dental work. Today, with so much emphasis placed on…
With a shift in the mortgage market from refinances to purchase loans, what are the main concerns of most mortgage lenders? The main area over the past few years, when rates were low, was the increasing regulations that hampered lending and definitely increased costs. Not so anymore, according to a recent Moody’s Investors Service survey In 2017, Regulatory concerns have…
I just returned from speaking at the ABA Real Estate Lending Conference in Orlando. It was a great conference and the Hyatt Regency was a great venue. I only regret I couldn’t spend more time in Orlando. The conference offered a myriad of information, products, and services covering just about all areas of commercial and residential mortgage lending. Topics discussed…
We knew it would come sooner or later. It looks like it may have started. For the 4th quarter 2016 Independent Mortgage Bankers reported a decline in production and with it a drop in profits. On average, the net gain on loans originated in the 4th quarter was about $575, a big drop from the $1773 per loan reported in…
According to First American Financial Corporation’s latest Loan Application Defect Report, the frequency of defects, fraud, and misrepresentations jumped to 4% on loan applications submitted in February. That’s a 1.3% increase above just one year ago. A 4% increase may not seem like much but when talking about fraud and misrepresentations among mortgage applications it could prove to be an…
Fraud, misrepresentations, and loan defects are rising as refinances decline and purchase activity increases. According to The First American Financial Corporation, their Loan Application Defect Index rose 5.8% in January 2017, as compared to last year. This trend started in December of 2016. As the industry pushes to qualify more potential homebuyers in a rising rate environment, it experiences more problems…
