Year in Review: Origination News

From the start of QM to the end of quantitative easing, the past year saw plenty of big news in the mortgage and financial markets. As the new year rolls in, MReport is taking a look at some of the biggest origination headlines of 2014.

1. CFPB Director: Newly Implemented Rules Take Industry 'Back to Basics': Richard Cordray had an active year, starting off with a media blitz designed to promote the newly implemented qualified mortgage guidelines first introduced in 2013. He kept that up in a Phoenix appearance, telling an audience that the rules reflect a common-sense approach to lending.
2. Report: Wells Fargo Setting Sights Back on Subprime: Wells Fargo wasn't the only lender to flirt with the idea of lower-credit business in 2014, but as the biggest mortgage firm in the country, it made the biggest splash.
3. Originators Outline Struggles in Changing Market: Despite declining profit margins and increased regulatory scrutiny, lenders in Hammerhouse's fourth annual survey indicated their biggest concern earlier this year was adjusting to the purchase-focused (but still purchase-weak) environment. As Hammerhouse managing director Drew Waterhouse said, 2014 was the year in which originators had to "come to terms with the new realities of the mortgage industry."
4. CFPB Report Details 'Pain Points' of Loan Closing Process: The findings uncovered in the bureau's report may not be too surprising, but it was newsworthy in that it sparked the launch of CFPB's eClosing pilot program.
5. 80% of Lenders Shy Away from Non-QM Business: As a follow-up to its first Lender Sentiment Survey, Fannie Mae explored lenders' strategies in the wake of QM. Unsurprisingly, most plan to limit their non-QM exposure—if they have any at all.