Secondary Market

The Federal Reserve Bank of Cleveland has released its commentary on the broader economic effects of the recent closure of local bank branches, as lenders struggle to maintain bottom line viability in the marketplace. The brief, developed by Emre Ergungor and Stephanie Moulton, is titled, Do Bank Branches Matter Anymore?, and the authors├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó conclusions indicate that the general answer to that large and looming question is a resounding yes, with considerable social impact as a net loss in communities.

Reforming Fannie Mae and Freddie Mac without anticipating changes from new limits to government-backed mortgages could make the fixed-rate mortgage a less available product, witnesses told lawmakers Wednesday.

Citing dips in home sales, purchases, and low job growth, some economists say housing is already in a double-dip recession, with reprieve still off for another two years - this despite a last-minute debt deal.

Carrington Mortgage Services, LLC, is expanding via newly acquired assets from American Home Equity Corp. (AHE). Focused on growing its origination component, Carrington structured its purchase deal with AHE to enhance the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós wholesale retail channel.

Radian Guaranty, Inc. is multiplying its sales force with the addition of three new team members. Andrew (Andy) Cooper, Shelley Duffy, and Patrick Harrigan are joining Radian├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós sales division. Cooper will now serve as Radian├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós vice president, national account manager, and he├â┬ó├óÔÇÜ┬¼├óÔÇ×┬óll be responsible for managing and developing strategies with the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest lending partners.

CoreLogic├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós international operations are making news in India, with the announcement that Cognizant will buy CoreLogic Global Services Pvt. Ltd. for a reported $50 million. The acquisition of CoreLogic Global, better known as CoreLogic India, will likely make Cognizant the third largest information technology services entity in the country, ousting Wipro Ltd. Lenders using the new program will benefit from a high level of customization, including the ability to tailor the alert system.

As splintering debt-ceiling negotiations unnerved analysts and ratings agencies, Treasury yields and mortgage rates remained relatively stable over the weekend, reflecting a widespread consensus among investors and market watchers that partisan divisions would soon give way to a grand bargain between policymakers. CNN reported Sunday that House Speaker John Boehner (R-Ohio) refused to agree to a set of conditions at the White House, ending dramatic four-month-long negotiations.

Fannie Mae released a July economic outlook Friday tying a slowdown in the economy at large to a sluggish pace in the housing sector a consequence of tight credit, a dearth in existing-home sales, and weak gains across important industries. The mortgage giant predicted a dip in growth over the rest of the year, falling from 2.8 percent to 2.4 percent. Besides restrained credit expansion, the tepid housing recovery is another reason for the modest pace of economic growth seen in the current recovery, Fannie said in the report.

Fifth Third Bancorp had a great spring season, judging by the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós scorching second quarter numbers. The bank estimates its quarterly results were the best on record since 2007, and the dramatic, 58 percent increase in mortgage banking revenue between the first and second quarters of this year contributed heavily to the company├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós recent success. Total net income during Fifth Third's second quarter was $337 million, demonstrating a significant rise quarter-over-quarter.

Signaling that it means business, the newly opened Consumer Financial Protection Bureau undertook its first major stab at the rule-making process by issuing a proposed rule that would shift alternate mortgage origination from the state to federal level nationwide. The rule applies to Regulation D under the Alternative Mortgage Transaction Party Act. If enacted, it would enact a Dodd-Frank provision by allowing state-licensed mortgage originators to make alternative loans even states with laws that prohibit such loans.