National Mortgage News - January/February 2021

The refi boom’s aftermath

With refinance volumes predicted to fall — but currently continuing apace — lenders explain how they’re readying themselves for eventual contraction and its implications for their expenditures.

Two reports reveal how borrowers prefer to engage with lenders, with younger customers preferring an efficient digital experience and most seeking some form of human interaction.

Industry watchers make their wildest guesses (more or less) about developments in real estate finance that could rock the industry in the upcoming months.

Mortgage applications decreased 4.2% over the final two weeks of 2020, but the strong demand for home buying throughout most of the year should continue, according to the Mortgage Bankers Association.

The company had canceled its planned pricing of the deal at the end of October over stock market volatility.

Under the agreement, Oaktree could purchase up to a 4.9% stake in Ocwen when the deal closes, and warrants to purchase an additional 3%.

The proposal builds on guidance the agency gave to Fannie Mae and Freddie Mac earlier this year.

The reference pools of mortgages supporting the credit-risk transfer notes sold by Fannie Mae and Freddie Mac were 'generally lower' in delinquencies per newly issued monthly reports, says DBRS Morningstar.

The Consumer Financial Protection Bureau has taken a hands-off approach to servicers during the pandemic. But with forbearance plans set to expire and President-elect Biden likely to appoint new CFPB leadership, companies lacking aggressive plans to help borrowers could face tougher enforcement.

The regulator's demands for ending the action were excessive, Ocwen claimed.

The availability of financing hasn’t been an issue to date, but it still could be.

Reports indicate distressed owners would rather surrender their hotel or retail properties instead of negotiate workouts on delinquent loans as the pandemic spread carries on.

While it's no silver bullet, automation with careful monitoring and testing can help lenders eliminate racial bias toward potential borrowers, the developers say.

A panel appointed by the Consumer Financial Protection Bureau said Congress should consider authorizing the bureau — and not the Office of the Comptroller of the Currency — to issue federal charters to fintech companies.

The CFPB issued two rulemakings in 2020 that the financial services industry and consumer advocates hoped would finally clarify key issues over how collectors contact debtors and deal with legacy debts. But both sides want the incoming Biden administration to make further changes.

Housing values are outpacing record-low rates and that’s hurting the entry-level homebuyers, but down payment programs and other traditional measures to assist them may only drive prices to greater heights, according to former Freddie Mac CEO Don Layton.

Mortgage industry hiring and new job appointments for the week ending Dec. 11.