News

In the aftermath of the federal government shutdown and contentious debt ceiling negotiations, Fannie Mae predicts continued market volatility for at least the next few months. Consumer sentiment toward the economy and the housing market wavered last month, and the expects that to continue into the new year despite low mortgage rates and robust annual home price gains.

Existing-home sales translate to an annual rate of 5.12 million at the October sales pace, according to the National Association of Realtors (NAR). October's sales volume was down 3.2 percent from September and marked the second consecutive month of declining transactions. NAR blames low inventory, diminished buying power from rising prices and interest rates, and a restrictive credit environment for the drop in sales.

It's no secret underwriting standards have tightened in recent years, and while many decry the heightened standards for making homeownership less accessible to some Americans, an economist with CoreLogic points out in a report released Wednesday that heightened standards are, without question, impacting delinquencies for the better, with 2013 vintage loans carrying a serious delinquency rate of just six basis points.

The Consumer Financial Protection Bureau (CFPB) is issuing a rule Wednesday requiring lenders to use its disclosure templates to lay out mortgage terms for borrowers. The new ""Know Before You Owe"" mortgage forms will replace existing federal disclosures, and the CFPB says they'll help consumers better understand their options, comparison shop for the best mortgage deals, and avoid costly surprises at closing.

The average down payment on a 30-year, fixed-rate mortgage loan in the third quarter of this year was 15.73 percent, according to LendingTree, an online marketplace connecting potential borrowers with lenders. The third-quarter average is down 2.74 percent from the previous quarter. LendingTree suggests the drop is due to a slight loosening of standards by lenders across the nation.

MountainView Servicing Group announced another mortgage servicing rights (MSR) offering on Tuesday, this one a Fannie Mae portfolio valued at $152 million in unpaid principal balance. MountainView's lead advisor on the sale says these kinds of offerings are becoming more commonplace as competition over servicing rights grows within the marketplace.

NexTitle, based in Bellevue, Washington, announced plans to expand its operations with a new office in Lake Oswego, Oregon, which the firm intends to make its flagship office in the state. The company also announced it was selected from a field of finalists in the title and escrow field to receive the 2013 Business and Humanitarian Award for Outstanding Title and Escrow Company presented by the Washington Association of Mortgage Professionals.

Collaboration between the private and public sectors has resulted in 8 million non-foreclosure solutions completed for at-risk families since 2007, according to HOPE NOW, a voluntary alliance of mortgage servicers, investors, mortgage insurers, and nonprofit housing counselors. Over the last six years, the mortgage industry has completed more than 6.71 million total permanent loan modifications, while short sales total approximately 1.39 million since December 2009.

Republic Mortgage Insurance Corporation (RMIC) faces a $100,000 fine and enhanced supervision by the Consumer Financial Protection Bureau (CFPB) for allegedly offering illegal kickbacks to lenders in the form of captive reinsurance policies in exchange for business referrals, according to an announcement from the CFPB. Such activities violate federal consumer laws and have become a target area for the bureau.

LoanLogics, a company specializing in loan quality management and performance analytics technologies for the mortgage industry, announced it has raised $11.2 million in funding from growth equity firm Volition Capital and existing investors. The capital infusion will be used to continue the company's national expansion and to enhance its Enterprise Loan Quality Management System.