New Construction Lending Mantra: Be Conservative | News - National Mortgage News

Category: National Mortgage News
Published: Tuesday, 28 July 2015
Written by Admin

With the pre-crisis years a more distant memory, banks are embarking on a new chapter in construction lending where high demand and automatic profits are being replaced with patience and good old-fashioned conservatism.

The philosophy used to be Build it and they will come, said Daniel Hill, a senior vice president at Regions Bank. We dont do that anymore.

In the wake of many banks no longer offering acquisition, development and construction loans following the crisis, institutions now are attempting to re-position the business to deal with a new type of market.

Demand is nowhere near where it was during the boom and lenders are still somewhat chastened by what happened in the crisis. But banks say they have found success taking steps like requiring more equity from builders and developers, financing smaller developments and offering terms meant to prevent builders from abandoning a deal.



CalHFA Exits Treasury's Credit Liquidity Program Early - National Mortgage News

Category: National Mortgage News
Published: Tuesday, 28 July 2015
Written by Admin

The California Housing Finance Agency has ended its use of a US Treasury liquidity program that the agency had relied on since 2009.

CalHFA in Sacramento said it initially tapped $3.5 billion from the Temporary Credit Liquidity Program. CalHFA has gradually reduced its exposure to the program and finalized its exit by replacing $510 million from the Treasury with letters of credit from four private banks.

The retirement of the TCLP obligationÂ…demonstrates that private banks will again extend us credit, Tia Boatman Patterson, CalHFAs executive director, said in a news release.

CalHFA did not identify the banks that provided the letters of credit.



Mortgage Application Defects Reverse Course in June

Category: National Mortgage News
Published: Tuesday, 28 July 2015
Written by Admin

The rate of mortgage applications with defective information fell in June, reversing the upward movement from earlier this year, according to First American Financial.

The First American Loan Application Defect Index fell 5.8% in June from the previous month. The index fell 11% from a year earlier.

The rate of defects had steadily decreased since its peak in 2013, although it has since started to move back upward since the beginning of this year, First American said.

Its reassuring to see the national mortgage loan defect trend, which had been increasing since the beginning of 2015, now partially reversing, Mark Fleming, First Americans chief economist, said in a news release.



Top Producer Mastered the Loan Process to Beat His Competition | News ...

Category: National Mortgage News
Published: Monday, 27 July 2015
Written by Admin

The Producer Profile series highlights career anecdotes and insights into the success of the loan officers who appeared in National Mortgage News 2015 Top Producer rankings.

This weeks edition features Eric Rotner of Commerce Home Mortgage, where he is a vice president of mortgage banking in the companys Walnut Creek, Calif. headquarters.

He has been in the mortgage banking business for more than 13 years. He joined what was then called BWC Mortgage Services in November 2007. Rotner attended the University of California, Davis, where he got a degree in managerial economics.

Last year, Rotner originated 205 mortgages for a combined dollar volume of approximately $116 million — putting him No. 13 on the 2015 Top Producers list.