Home >> Tag Archives: Underwriting Standards (page 8)

Tag Archives: Underwriting Standards

December Mortgage Originations Down 10.1% from September: LPS

Mortgage originations fell from a peak in September last year to hit 10.1 percent in December, according to Lender Processing Services. Revealing the latest data in December Mortgage Monitor report, the company also said that loans originated over the last two years consistently showed high quality, which it attributes to tighter lending and underwriting guidelines. LPS Applied Analytics said that risk attributes stayed near minimal levels, with credit quality for borrowers averaging 750 in 2011.

Read More »

New-Home Sales Hit All-Time Lows in 2011

New-home sales crawled to a seasonally adjusted annual rate of 307,000 in December despite modest signs of recovery. The Commerce Department said Thursady that new-home sales fell 2.2 percent below expectations from November, which held that homebuyers would pick up a seasonally adjusted 314,000 homes annually. New homes from last month carried a median sales price around $210,300, with the average sales price hovering around $266,000. Experts suggest contract failures, foreclosures, short sales, and tight credit helped slow sales.

Read More »

Witnesses Criticize, Call for Repeal of Volcker Rule

Witnesses testifying before the House Financial Services Committee Wednesday warned lawmakers that the controversial Volcker Rule could tighten bank liquidity and make U.S. financial institutions less competitive with banks overseas. Once finalized by regulators, the rule ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô unless modified or repealed by lawmakers ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô will enact a provision under the Dodd-Frank Act that prohibits U.S. banks from engaging in short-term proprietary trading practices. Douglas Elliott, a fellow with the Brookings Institution, called for an outright repeal of the Volcker Rule.

Read More »

Duke: Fed Wants to Work With Smaller Banks

Federal Reserve Gov. Elizabeth Duke offered to reassure bank executives Friday that the central bank wants to avoid a one-size-fits-all approach to regulation and work with smaller financial institutions to ensure that new mortgage banking rules work effectively. Speaking before the California Bankers Association in Santa Barbara, the official, a former banker-turned-regulator, said that the Fed will strive to prepare examiners and work with banks ahead of stress tests and final rules. She said regulators will include statements before every rule for bankers.

Read More »

Mortgage Applications Rose 4.5% Last Week: MBA

Mortgage applications shot up 4.5 percent on a seasonally adjusted basis last week, above averages seen year-over-year but far below gains in overall volume that occurred over the last several months. Releasing the figures in a weekly survey Wednesday, the Mortgage Bankers Association reported mortgage application volume expanding 34.4 percent on a seasonally unadjusted basis. The refinance share of mortgage activity contracted to 80.8 percent of application volume.

Read More »

MBS Cases Drive Q3 Mortgage Litigation: Study

A surge in suits involving mortgage-backed securities propelled litigation cases for mortgage servicers to 218 over the third quarter last year, according to a recent index. Mortgage-backed securities litigation rose by 36 cases over the third quarter, up from 26 seen from the last quarter and just 12 in the third quarter 2010. Foreclosure-related suits also went up from 67 in the second quarter to 90 in the third quarter, followed shortly by litigation from investors, which leapt from 50 to 82 over the same time frame.

Read More »

Duke: Tight Credit May Be to Blame for Slow Recovery

Still-tight credit supply is at fault for anemic demand in the housing market, preventing a full-fledged recovery from exerting itself, according to one governor on the Federal Reserve Board. Delivering a presentation before trade groups in Virginia earlier Friday, Fed governor Elizabeth Duke faulted underwriting and lending standards, among other market forces, for delaying financial support for homeowners. She said tight credit conditions persist even when the GSEs and FHA offer lenders a number of opportunities to shield themselves from additional risk.

Read More »

Construction Spending Climbed 1.2% in November

Homebuilders spent more on construction in November last year than in any month before August, with figures for new residences climbing by 1.2 percent above October estimates. Fielding the numbers Tuesday, the Commerce Department reported that construction spending overall hovered at around $807.1 billion. Single-family home construction moved forward at a steady clip by rising 1.5 percent, with nonresidential construction staying nearly the same as in October with about $278 billion or so in reported expenditures.

Read More »

Stocks Soar on Fed’s Move to Save Global Financial System

Fed

A bold move to shore up global financial liquidity by the Federal Reserve and central banks from five other countries created a surge in confidence for investors Wednesday, inspiring a pickup in stocks and shares for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós four biggest U.S. lenders. The Dow Jones Industrial Average jumped nearly 500 points to crest at 12,045.68 by end of day in response, with shares climbing for Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Central banks agreed to lower prices for U.S. dollar liquidity swaps by 50 basis points.

Read More »

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.