One of the byproducts of the housing crash was that many of the large commercial Banks discontinued offering FHA insured mortgage loans. In fact, at present, only two of the big guys are still originating under the FHA program; Wells Fargo and Flagstar? Both also offer a huge correspondent loan program allowing many non-bank lenders to originate these loans as…
While Banks and non-bank mortgage lenders battle it out to capture a larger slice of a shrinking pie, Marketplace Lenders have appeared on the mortgage lending scene to upset the pie chart. What effects will such lenders have on the future of mortgage lending, and how it gets done? What is a “Marketplace Lender”? Presently, these are non-bank lenders offering…
Hiring among non-bank mortgage lenders increased in September, adding 2200 full-time employees to their payrolls. That’s a big jump from the 900 hires they added in August. The additions were part of a rise in September employment to 315,000 new jobs, the highest increase since 2008. Maybe things are looking up. This hiring increase by non-bank mortgage lenders comes at…
It’s official. Mark it down. In the third quarter of 2016, non-bank mortgage lenders originated more than half of the mortgages originated in the US. According to a WSJ report, they represented about 51.4% of the mortgage dollars lent as of the end of September. You’ve come a long way, baby. With the big bank’s exodus from FHA lending and…
It’s no secret that the major banks have moved away from FHA lending because of their perception of the risks related to the required loan certifications and lack of clarity on potential enforcement. As a result, non-bank mortgage lenders have picked up the slack. This presents some additional lending opportunities for non-bank lenders. With this increased FHA business, non-bank lenders…
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…
