Mortgage News Review Wholesale Mortgage News Thu, 28 Aug 2014 14:05:41 +0000 en-US hourly 1 Tiptree Financial Acquires Majority interest in Luxury Mortgage Corporation Sat, 08 Feb 2014 22:37:35 +0000 Tiptree Financial Inc. has recently completed its previously announced strategic transaction with Luxury Mortgage Corp. Under terms of the related transaction agreements Tiptree has acquired a majority interest in Luxury Mortgage and its previously funded senior secured term loan remains outstanding.

Luxury Mortgage expects to use the proceeds of the investment to expand operations through additional origination channels such as retail expansion and a new correspondent channel which will focus on acquiring prime credit jumbo loans. With Tiptree’s support, Luxury Mortgage will also pursue expansion opportunities through strategic alliances and strategic acquisitions in existing and new markets.

Michael Barnes, Executive Chairman of Tiptree, and Geoffrey Kauffman, CEO of Tiptree, joined Luxury Mortgage’s Board of Directors in connection with the transaction

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RISKSPAN Hires Mortgage Industry Leader Brad Davis as Managing Director Tue, 30 Apr 2013 17:53:23 +0000 To support the growth in its consulting sales and delivery activities, today RiskSpan President and CEO Bernadette Kogler announced the hiring of Brad Davis as Managing Director.

RiskSpan is known for its breadth of senior mortgage expertise at the executive level and Brad is no exception. With 22 years experience working for the nation’s largest mortgage lender and its predecessor companies, Brad offers tremendous insight into the full secondary mortgage market lifecycle. In naming Brad to this critical role, Kogler successfully added a savvy and results-oriented trusted advisor who has the detailed knowledge and unsurpassed experience built in the mortgage field.

Mr. Davis has held a series of executive roles at Wells Fargo Home Mortgage, including in the areas of capital markets, structured finance, product development, securitization, and corporate trust services. In addition, Davis has led Agency related development projects and served as an expert on Securities and Exchange Commission requirements.

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Trez Capital Senior Mortgage Investment Corporation Fully Deploys Capital from Recent IPO Tue, 30 Apr 2013 17:52:18 +0000 Trez Capital Senior Mortgage Investment Corporation (the “Company” or “Senior MIC”) announced today that the net proceeds from its Initial Public Offering (“IPO”) have been fully deployed in 22 Canadian first mortgage loans.

The Senior MIC completed its IPO in late December 2012 with net proceeds of $83.7 million. The investment focus of the Company is on conservative first ranking mortgages (both whole loans and senior tranches) on real property in Canada with the goal of generating attractive returns while preserving capital. The targeted yield on the Senior MIC’s shares is 5 percent, based on an issue price of $10 per Class A share. As of April 26, 2013, the Company had $95.8 million invested in a mortgage portfolio that is comprised of over 50 percent residential loans with an average loan-to-value of 37.8%. To date the Company has utilized $13.0 million of its line of credit facility. The average interest rate on the mortgages is 6.1 percent (excluding commitment fees). Monthly updates of the mortgage portfolio summary are posted on the Senior MIC’s website

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Home Prices Rise in February 2013 Tue, 30 Apr 2013 17:51:49 +0000 Data through February 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller (1) Home Price Indices, the leading measure of U.S. home prices, showed average home prices increased 8.6% and 9.3% for the 10- and 20-City Composites in the 12 months ending in February 2013. The 10- and 20-City Composites rose 0.4% and 0.3% from January to February.

All 20 cities covered by the indices posted year-over-year increases for at least two consecutive months. In 16 of the 20 cities annual growth rates rose from the last month; Detroit, Miami, Minneapolis and Phoenix saw slight annual deceleration ranging from -0.1 to -0.4 percentage points. Phoenix continued to stand out with an impressive year-over-year return of +23.0% while Atlanta and Dallas had the highest annual growth rates in the history of these indices since 1992 and 2001, respectively.

In February 2013, the 10- and 20-City Composites posted annual increases of 8.6% and 9.3%, respectively.

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Mayflower Bancorp Reports Fourth Quarter And Annual Earnings Tue, 30 Apr 2013 17:51:26 +0000 Mayflower Bancorp, Inc. (NASDAQ Global Market: MFLR), the holding company for Mayflower Bank, today reported net income of $297,000 or $0.14 per share the fourth quarter ended March 31, 2013, compared to earnings of $224,000 or $0.11 per share for the two-month period ended March 31, 2012. The diluted earnings per share were $0.14 and $0.11 respectively.

In February 2012, Mayflower Bancorp, Inc. changed its fiscal year-end from April 30 to March 31, necessitating the shortened reporting periods for the prior fiscal year.

For the year ended March 31, 2013, net income was $1,468,000 or $0.71 per share, compared to $1,217,000 or $0.59 per share for the eleven months ended March 31, 2012. On a diluted per share basis, earnings were $0.71 per share and $0.59 per share, respectively.

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AllRegs to Publish Norcom Mortgage Lending Library of Mortgage Underwriting Guidelines Sat, 27 Apr 2013 15:40:56 +0000 AllRegs will publish Norcom Mortgage’s lending library of mortgage underwriting guidelines. Norcom Mortgage is going to leverage the AllRegs technology platform and publishing expertise to manage and maintain their retail and correspondent lending library of mortgage underwriting guidelines.

Users will benefit from a variety of productivity tools, including an electronic Table of Contents tree with links to content, guidelines and forms. Content is also accessible through a robust search engine that features a thesaurus with industry jargon and relative matching results.

Norcom Mortgage internal staff and business partners will be able to access mortgage underwriting guide content through the online Lending Library that includes the following topics:

– General Requirements
– Freddie Mac Loan Prospector
– Conforming Conventional Loans
– Appraisal Standards
– Specific Property Types – Eligible Products
– Government Loans
– New Construction

In addition, the Norcom Lending Library features a Recent Updates section to identify changes to content, as well as Email Alerts to notify users of changes.

For more information about Norcom Mortgage, visit or contact Norcom at (855) Norcom1, Monday through Friday, between the hours of 8:30 a.m. and 5 p.m. EST.

For more information about AllRegs and its publishing services, visit or contact AllRegs at (800) 848-4904, Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. CT.

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Low Mortgage Rates Driving Record Home Affordability Wed, 10 Apr 2013 15:16:47 +0000 Thanks to historically low interest rates, American homeowners paid almost 37 percent less per month in mortgage payments in the fourth quarter compared to pre-housing-bubble norms – even as homes themselves cost 14.5 percent more in the fourth quarter compared to historic averages relative to U.S. median incomes, according to leading online real estate marketplace Zillow®.


Zillow analyzed current and historic median home values as determined by the Zillow Home Value Index[i], and median income data from the U.S. Census and the Bureau of Labor Statistics, for more than 240 metro areas nationwide and the U.S. as a whole. Researchers used this data to calculate both an affordability index[ii] – measuring the portion of monthly income homeowners spend on mortgage payments – and a price-to-income ratio[iii], analyzing how much homes cost overall compared to annual incomes.

Homeowners in 24 of the 30 largest metros covered by Zillow were paying more for homes in the fourth quarter of 2012 relative to their region’s median income than they were from 1985 through 1999. Metros with the largest difference between their pre-bubble and fourth quarter 2012 price-income ratios included San Jose (52.1 percent more), Los Angeles (48.8 percent more), Portland, Ore., (45.4 percent more), San Diego (44.6 percent more) and Denver (40.8 percent more).

Of the 30 largest metros covered by Zillow, only Cincinnati (3.1 percent less), Chicago (3.9 percent less), Cleveland (6.7 percent less), Atlanta (13.9 percent less), Las Vegas (14.6 percent less) and Detroit (25.5 percent less) posted price-income ratios in the fourth quarter of 2012 that were less than historic norms.

[i] The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

[ii] To calculate an affordability index, we first calculate the mortgage payment for the median house price in a metropolitan area, by using the metro-level Zillow Home Value Index for a given quarter and the 30-year fixed mortgage rate during that time period provided by the Freddie Mac Primary Mortgage Market Survey. Then we consider what portion of the monthly median household income goes towards this monthly mortgage payment.

[iii] The price-to-income ratio compares the median price of homes to the median level of household income in a given area. Specifically, we used the metro-level Zillow Home Value Index, which is a measure of home values for a given metro, together with that metro’s median household income. Median household income is currently available through 2011. For years following 2011, we calculated the median household income by estimating it via the Bureau of Labor Statistics’ wage growth rates.

SOURCE Zillow, Inc.

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Data Shows Seasonal Increase in Loan Cures, Rise in Modification Activity After Decline Wed, 10 Apr 2013 15:14:50 +0000 The February Mortgage Monitor report released by Lender Processing Services (NYSE: LPS) found an increase in loan “cure” rates (those loans that were delinquent in the prior month and are now current). The majority of cures were on loans one-to-two months delinquent, with approximately 500,000 loans curing in February alone. As LPS Applied Analytics Senior Vice President Herb Blecher explained, these cures were not unusual, but rises seen in loans three-to-five months delinquent and foreclosure-initiated categories were unexpected.

As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:

Total U.S. loan delinquency rate:

Month-over-month change in delinquency rate:

Total U.S. foreclosure pre-sale inventory rate:

Month-over-month change in foreclosure pre-sale inventory rate:
-0.98 %

States with highest percentage of non-current* loans:

States with the lowest percentage of non-current* loans:

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.

To view the Mortgage Monitor Snapshot, LPS’ new video version of the Mortgage Monitor, visit

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Genpact Study: New Regulations and the Economy Act as Catalysts to Drive Streamlining of Processes in the Mortgage Industry Wed, 05 Dec 2012 14:24:53 +0000 A study sponsored by Genpact Limited (NYSE: G), a global leader in business process management and technology services, has found that new regulations and a challenging housing recovery environment will require mortgage providers to improve and streamline processes in the mortgage lending lifecycle. The research sought to determine key challenges and priorities facing the mortgage industry by surveying banking and mortgage professionals about their current and planned workflow technology solutions and processes, in addition to the systems used by loan servicers throughout the loss mitigation cycle.

More than 300 decision makers from single-family residential mortgage origination and servicing companies participated in the study, including banks, non-depository mortgage banks, credit unions, and mortgage specialty servicers. The research found that the dynamics of changing regulations, evolving technology and process improvements continue to have an increasing impact on the mortgage industry.

More than three in four originators and servicers generally believe that their current processes and technology are effective. Nonetheless, 91% indicate that they are still likely to reevaluate their processes in the next 12 months and 90% are likely to improve their technology to enhance workflow management to be more effective in the new and more challenging lending environment.

For those respondents who describe their company’s current workflow systems as ineffective, they cite a number of factors: labor-intensive manual systems, outdated and slow technology, multiple systems, and lack of integration, as well as lack of scalability, support, and workflow management. In addition, manual workflow processes and technologies present numerous challenges to loan originators and servicers who need to improve response and processing times to keep up with higher volumes and production levels.

In line with these findings, in the near future, manual and semi-automated systems may be less pervasive. Paper worksheets currently account for two-thirds of servicers’ loss mitigation efforts, while 88% of servicers use semi-automated spreadsheet templates. Nearly 50% of servicers currently use commercial off-the-shelf automated decisioning engines for their loss mitigation efforts, and 37% have developed custom automated decisioning engines. However, only 20% of servicers said they plan to use manual or paper worksheets and 10% said they plan to use spreadsheets twelve months from now.

When asked about the likelihood of their companies considering business process and technology management services to manage all or part of their workflow processes, 77% of respondents indicate they are likely to consider these solutions.

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LPS’ October Mortgage Monitor: Foreclosure Starts Down Wed, 05 Dec 2012 14:18:08 +0000 The October Mortgage Monitor report released by Lender Processing Services (NYSE: LPS) showed a significant decline in foreclosure starts for the last two months – down 21.9 percent in October and almost 48 percent on a year-over-year basis – leading to a nearly 7 percent drop in overall foreclosure inventory. However, as LPS Applied Analytics Senior Vice President Herb Blecher explained, this fall-off in foreclosure starts is likely a temporary phenomenon, driven by new borrower notification requirements called for in the National Mortgage Settlement.

This month’s Mortgage Monitor also drew upon data from the LPS Home Price Index, to look at both the trajectory of home price increases as well as the make-up of residential real estate transactions. While appreciation continues to rise nationally – U.S. home prices were up 3.6 percent year-over-year in September and on track to gain between 5-7 percent for 2012 – overall sales volumes remain relatively low. During the past 12 months, there have been approximately 4.1 million residential real estate sales, less than half the annualized rate at the market’s peak in November 2005. Further, 1.3 million of those transactions have been distressed sales, compared to just 226,000 at the peak. As a point of reference, despite 2012′s healthy rate of appreciation, home prices are still nearly 23 percent off their June 2006 peak.

Looking at the current state of mortgage originations, LPS found that September loan originations were down, likely due to the shortened number of business days in the month. However, prepayment speeds (historically a good indicator of refinance activity) rebounded in October, and as such, LPS expects to see overall origination numbers pick up for that month. LPS also found that mortgage spreads remain elevated, averaging 197 basis points above the 10-Year Treasury rates, with interest rates consistent across all product types.

As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:

Total U.S. loan delinquency rate:


Month-over-month change in delinquency rate:


Total U.S. foreclosure pre-sale inventory rate:


Month-over-month change in foreclosure pre-sale inventory rate:

-6.77 %

States with highest percentage of non-current* loans:


States with the lowest percentage of non-current* loans:


*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.

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