COFI Sets New Record as One-Year Yield Rises

Author:  //  Category: Mortgage

Just when it looked like the Cost of Funds Index couldn’t go any lower, a new record was established. A more widely used index for adjustable-rate mortgages, however, was higher.

During September, COFI — which is calculated by determining the aggregate interest expense for banks that are members of the Federal Home Loan Bank of San Francisco with headquarters in Arizona, California and Nevada — came in at the lowest level ever recorded based on data dating back to 1981.

The index retreated 3 basis points from August. An even bigger decline occurred from September 2011: 24 BPS.


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HARP Productivity High

Author:  //  Category: Mortgage

While banks haven’t tightened lending requirements during the past six years on government-insured mortgages made to borrowers with moderate-to-high credit scores, the story is different for borrowers with lower scores. Banks see a high closing ratio for applications generated through the enhanced Home Affordable Refinance Program. Commercial mortgage lending showed signs of improvement.

A “material” share of refinance applications taken during the past three months were the result of HARP 2.0, according to a survey of bank loan originators.

Around 20 percent of the banks expected at least 80 percent of their HARP 2.0 applications to close, and another 45 percent expected to close between 60 and 80 percent of applications.


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M.I. Firms to Allow Short Sales, Deeds in Lieu Without Prior Approval

Author:  //  Category: Mortgage

The nation’s mortgage insurers have agreed to forego prior approval on short sales and deeds in lieu of foreclosure for loans owned or guaranteed by either the Federal Home Loan Mortgage Corp. or the Federal National Mortgage Association.

Delegation agreements have been reached between nine mortgage insurance companies and Freddie Mac that enable servicers to approve short sales and deeds in lieu of foreclosure without prior approval from the mortgage insurer, according to an announcement Wednesday from the McLean, Va.-based company.

Freddie issued Bulletin No. 2012-23 outlining details for servicers.


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Ocwen Delves Deeper Into Originations

Author:  //  Category: Mortgage

Another upcoming acquisition by Ocwen Financial Corp. will build on the origination platform it is inheriting through other forthcoming acquisitions. However, the latest deal involves the quickly diminishing reverse mortgage business.

The Atlanta-based company last week won its bid to acquire Residential Capital LLC’s mortgage servicing and origination platform assets out of bankruptcy.

That followed an announcement three weeks earlier that it reached an agreement to acquire Homeward Residential Holdings Inc., formerly known as American Home Mortgage Servicing Inc., in a transaction that will give Ocwen a correspondent origination platform.


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Storm Brings Home Equity Loan Scams

Author:  //  Category: Mortgage
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Homeowners who have suffered damage from Hurricane Sandy need to beware of scammers who often crop up in the wake of disasters, the Consumer Financial Protection Bureau (CFPB) is warning.

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Storm Brings Home Equity Loan Scams

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CMBS Delinquency Declines 4 Consecutive Months

Author:  //  Category: Mortgage

Delinquency on securitized commercial real estate loans extended its improving run to four months, with performance on apartment loans leading the way. Delinquency on loans secured by healthcare properties nearly doubled in a single month, while hotel delinquency also surged.

September’s rate of 30-day delinquency on commercial mortgage-backed securities improved 19 basis points from August. Performance has improved each month since May, when the rate was 43 BPS worse.

CMBS delinquency was 8 BPS better than in September 2011.


CMBS Delinquency Declines 4 Consecutive Months

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Options for Disaster Mortgage Relief

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Homeowners who have been adversely affected by Hurricane Sandy may be able to qualify for mortgage relief from Fannie Mae and Freddie Mac.

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Mortgage Aid Coming to Hurricane Victims

Author:  //  Category: Mortgage

As details of the devastation from Hurricane Sandy emerge, steps are being taken by the federal government to provide assistance to the areas impacted by the destructive storm. Included in the assistance is help for distressed borrowers.

On Friday, CoreLogic warned that 261,000 residential properties were in the hurricane’s path. The value of those properties was estimated at more than $80 billion. Properties valued at more than $35 million were in New York, while more than $22 million were in New Jersey and in excess of $11 million were in Virginia.

On Saturday, CoreLogic raised the number of at-risk properties to 284,000. The aggregate value was raise to $87 billion.


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State Supreme Court Justice Suspected of Short Sale Fraud

Author:  //  Category: Mortgage

The Federal Bureau of Investigation is investigating a state supreme court justice in Michigan over the possibility that she deceived her mortgage servicer in order to obtain approval for a short sale on a $1.5 million waterfront property.

In November 2011, the property in question was sold with the lender accepting a more than $0.5 million write-down through a short sale transaction.

But the justice and her husband are suspected of transferring the title on two other homes to stepchildren through quit claim deeds just before the sale then taking the pair of properties back after the short sale completed.


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Mortgage Origination Scoreboard

Author:  //  Category: Mortgage

Helped by the Home Affordable Refinance Program, several mortgage bankers became billion-dollar players in the third quarter. Plenty of mid-tier lenders continue to originate business from mortgage brokers.

The Department of Veterans Affairs announced Friday that it has guaranteed 20 million home loans, including 540,000 during 2012, since the program was established in 1944 as part of the original GI Bill of Rights for returning World War II Veterans. There are 1.7 million VA loans outstanding for $284 billion.

“The 20 millionth loan was guaranteed for a home in Woodbridge, Va., purchased by the surviving spouse of an Iraq War Veteran who passed away in 2010,” the statement said. “Given the current low interest rates, the program has grown significantly in the past five years, with 71 percent more purchases and 20 times as many refinances processed in fiscal-year 2012 than in FY 2007.”


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