News

As analysts continue to watch market indicators for trends that might hamper the borrowing experience, a recent poll shows that borrowers themselves are more focused on customer service problems. The poll, conducted by real estate search engine Qazzoo.com, asked new homebuyers which aspect of the experience they found the most frustrating, from agent interaction to the loan application process.

Mortgage Industry Advisory Corporation (MIAC) announced two new mortgage servicing rights (MSR) portfolios totaling more than $694 million. The first offering is a $669.22 million portfolio from a seller with originations focused mostly in the Northeast. The portfolio contains a mix of Fannie Mae (47 percent) and Ginnie Mae (50.9 percent) loans, with warehouse loans making up the rest. The second offering is a $24.96 million portfolio featuring 79.8 percent Ginnie Mae and 20.2 percent Fannie Mae loans.

The Consumer Financial Protection Bureau (CFPB) last week ordered a Missouri-based mortgage lender and its president to pay more than $80,000 for funneling illegal kickbacks in exchange for real estate referrals. According to CFPB's complaint filed in mid-January, Fidelity Financial Mortgage Corporation (FFMC) in 2010 entered into an agreement with a Missouri bank in which Fidelity would lease an office at the bank in exchange for business referrals.

DocMagic, Inc., says it has a variety of solutions available that support lenders' compliance with the ECOA Valuation Rule, no matter what the lender's business rules are. Under the ECOA Valuation Rule, a creditor must provide an applicant with a copy of the appraisal and other written valuations upon completion, or three business days prior to consummation of the transaction, whichever is earlier.

According to the Consumer Financial Protection Bureau (CFPB), the new lending rules that went into effect on January 10 are meant to take a back-to-basics approach to mortgage lending and lower the risk of default and foreclosure among borrowers. However, many industry veterans feel the rules may hurt those they are designed to protect, primarily low income borrowers.

Home price expectations have been revised upward for 2014, but indicators still point to a slowdown in appreciation, according to Veros Real Estate Solutions. For 2014's five strongest markets, Veros is looking west. The top projected market for the year is the San Francisco area, which is expected to see price growth of 13.4 percent. San Jose is slotted for the second-most growth (10.7 percent), while Seattle and Los Angeles are rated for 10.2 percent and 9.6 percent increases. Growth is those areas will be driven by their relatively lower unemployment rates, Veros said.

West Chicago's DuPage National Bank has the dubious honor of being the first FDIC-insured institution to close in 2014. To protect depositors, the agency has entered into a purchase and assumption agreement with Republic Bank of Chicago, which has agreed to pay a premium of 1.20 percent to assume all of DuPage National's deposits (estimated at $59.6 million as of Q3 2013) and "essentially all" of its assets.

Pite Duncan, LLP, announced the promotion of Christopher Peterson to partner. Peterson joined Pite Duncan in 2009 and has been working as a senior associate attorney in the firm's litigation group. He has over 12 years’ legal experience in civil litigation.

Interactive Mortgage Advisors (IMA), a firm focused on the valuation and trading of mortgage servicing rights (MSRs), has added to its operational network with the opening of a new office in Dallas. With its new expansion, the company hopes to gain a foothold in the Lone Star State, which is home to a large number of originators and servicers.

A new report from Ellie Mae shows credit standards ended 2013 at their lowest level all year. The company found that by December, criteria for first-lien mortgages had relaxed considerably, with the average FICO score at 727, loan-to-value ratios averaging 82 percent, and debt-to-income ratios at a yearly high of 39 percent. The company also found that loans originated in December took an average of 43 days to close, down from 55 days a year earlier.