United Wholesale Mortgage Introduces Interest-Only Mortgages | News - National ...

Category: National Mortgage News
Published: Friday, 24 July 2015
Written by Admin

United Wholesale Mortgage has begun offering interest-only mortgages through its third party origination channels.

The Troy, Mich., company is offering the product to borrowers with a 20% down payment, a minimum FICO score of 720 and a debt-to-income ratio of 42%. Borrowers will be required to start paying principal after 10 years.

The purpose of the program is not to enable a consumer to afford a larger house, Mat Ishbia, chief executive, said in a news release. Its for savvy borrowers who can regularly afford a house on a 30-year fixed mortgage, but choose the interest-only option to save additional discretionary income.

The program will be made available to borrowers through mortgage brokers, correspondents, small banks and credit unions. Loan amounts for this non-agency project will range from $250,000 up to $2 million

Norman Edwards, Longtime MBA Staff Member, Dies | News - National Mortgage News

Category: National Mortgage News
Published: Friday, 24 July 2015
Written by Admin

Norman Edwards, a fixture for nearly 20 years on the Mortgage Bankers Association staff, has died, according to a family members Facebook posting and several industry sources who knew him.

The date and circumstances of Edwards passing were not immediately available Tuesday.

He was one of the first people I met at MBA and I was always impressed with how helpful he was and what a good friend he was and I always enjoyed smoking cigars and drinking whisky with him. He will be sorely missed, said Ann Fulmer, an expert on fraud and compliance in the mortgage industry.

According to his LinkedIn profile, Edwards joined ITT Financial Services as an analyst in 1989 and became a senior underwriter at North American Mortgage in 1993.

JPM Furthers Progress in RMBS Settlement Payments: Monitor

Category: National Mortgage News
Published: Tuesday, 21 July 2015
Written by Admin

Smith, who now runs an independent monitoring business, was selected by 49 state attorneys general, the federal government and five mortgage servicers to monitor the progress of JPMs $13 billion settlement over claims that Chase, Bear Stearns and Washington Mutual, all of which are now owned by JPM, sold bad mortgage notes to investors leading into the 2008 financial crisis. In addition to the $4 billion, JPM also agreed to pay $9 billion directly to states.

We continue to help thousands of families become homeowners and assist those who may be struggling, JPM spokesman Jason Lobo said in an email to National Mortgage News. Our efforts have helped more than 158,000 families through more than $19 billion in total mortgage relief.

Smith served as banking commissioner of North Carolina from 2002 until 2012 and was nominated by President Obama in 2010 to head the Federal Housing Finance Agency but withdrew himself from consideration due to opposition in the Senate.

Nonbank Mortgage Lenders Grow Fast, But Stay Safe

Category: National Mortgage News
Published: Saturday, 27 June 2015
Written by Admin

Nonbank lenders have always played a major role in originating Federal Housing Administration loans. What has changed in the last few years is that banks used to fund a sizable portion of nonbanks FHA loans. With their withdrawal, nonbank lenders increasingly turned to Ginne Mae to fund their own loans. As a result, nonbank issuance of Ginne Mae securities has exploded from around 20% in 2012 to over 50% of the market, according to the organizations data.

All this is a welcome development, according to Ginnie Mae president Ted Tozer. I am really happy about the non-depositories coming into the program, Tozer said in a recent National Mortgage News article. We really are very supportive of them being in the program. The housing market would be a lot worse off without them.

Many consumers have also shown a preference for nonbank lenders, which provide personalized mortgage loan origination and servicing to their borrowers. This strikes a significant contrast to the many distressed borrowers that have struggled with impersonal servicing by some of the big banks and mega-servicers.

Against this backdrop, it is important to understand that nonbank mortgage lenders are in fact already very well-regulated. In the wake of the 2008 housing crisis, consumer protections and regulation of nonbank lenders have been significantly strengthened. Like the banks, nonbanks are subject to all the new mortgage consumer protection rules and regulations promulgated under Dodd-Frank.

In addition, the individuals working on consumers loans at nonbanks are subject to much more stringent qualifications requirements than individuals working at banks.

Under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, nonbank loan originators must be licensed, pass theSAFE Act mortgage competency test, pass an independent background check, and complete eight hours of SAFE Act continuing education courses each year. In contrast, bank mortgage originators are exempt from all of these requirements — an exemption that is virtually unique among mortgage and financial services professionals.

Nonbanks are also regulated by multiple parties. They are supervised by every state in which they do business. In the wake of the housing crisis, nonbank lenders have also come under exam and audit supervision by the Consumer Financial Protection Bureau. And nonbanks are subject to net worth, liquidity and financial regulation related to the federally guaranteed loan products they underwrite — including FHA, GNMA, Rural Housing Service, Veterans Affairs, and Fannie Mae and Freddie Mac.

It is true that, unlike the banks, nonbanks are not financially backstopped by the federal government — either through the Federal Deposit Insurance Company, or in 2008 through a massive Treasury bailout. But we think that is a good thing. Instead of a taxpayer safety net, nonbank lenders are subject to market discipline.

Nonbank lenders must meet financial soundness requirements of the warehouse lenders that fund their operations, and owners of nonbank firms put their net worth on the line every day, taking on financial responsibility for loan repurchases and indemnifications.

As Congress and the regulators formulate mortgage policy, we think it is important that they keep in mind the critical role that nonbank mortgage lenders play in serving consumers and in protecting against industry concentration. That perspective will help them create policies that support the vitality of our housing markets and strength of our economy.

Scott Olson is executive director of Community Home Lenders Association.