Article Archive for November 2011
By Abby Gregory | 11/23/2011
Do appraisal forms and documents need more transparency? At least one trade group says yes. The Appraisal Institute joined together with other organizations to petition the Consumer Financial Protection Bureau for stronger buyer communication when it comes to information about appraisal costs and settlement forms. Specifically, the letter delivered to the government group asked for the separation of appraisal fees from administration and processing fees on settlement forms given to consumers when purchasing a property.
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By Abby Gregory | 11/23/2011
Mortgage rates continue to drop and recent statistics show that the price of long-term lending is approaching historically low numbers. Results of this week's survey from Freddie Mac show that an unexpected rise in home sales coupled with low rates have brought the cost of borrowing to its second-lowest level ever recorded. Percentages for a 30-year fixed rate mortgage loan fell to 3.98 percent off of 4 percent from the previous week, and the averages for 15-year fixed rate mortgages hit 3.3 percent, down from 3.31 percent.
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By Ryan Schuette | 11/22/2011
With the global economy overshadowed by debt crises, fleeing investors keep mortgage rates at record lows, as Zillow reaffirmed Tuesday. The real estate Web site polled its online audience, reporting that the benchmark 30-year fixed-rate mortgage hit 3.8 percent, the lowest rate in seven weeks. A dearth for the 30-year fixed-rate loan reflects a fall by 10 basis points, down from 3.9 percent last week. The 15-year fixed-rate mortgage likewise hovered around 3.16 percent.
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By Ryan Schuette | 11/22/2011
Under a final rule, banks with $50 billion or more in assets will need to submit capital plans to the Federal Reserve, which will also begin performing stress tests for the largest financial institutions next year. In accordance with the rule, the Fed will take responsibility for annual evaluations of each institution’s capital adequacy, internal assessment processes, and capital distribution plans, including dividend payments and stock repurchases.
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By Ryan Schuette | 11/22/2011
Balance sheets improved steadily for commercial and savings financial institutions over the third quarter, according to the FDIC, with those insured by the federal agency offering $35.3 billion in profit margins. Loan portfolios snagged an updraft over the third quarter, posting an increase for the second consecutive quarter as loans and leases went up by $21.8 billion. Residential mortgage loan balances climbed by $23.7 billion. Notably, the FDIC's "Problems List" contracted for the second consecutive quarter.
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By Ryan Schuette | 11/22/2011
If a new bill becomes law, it would establish a central appeals hub for financial institutions with concerns about actions taken by bank examiners, corralling the activities of several regulatory agencies for review. Reps. Shelley Moore Capito and Carolyn Maloney recently co-sponsored the Financial Institutions Examination Fairness and Reform Act, or H.R. 3461, which aims to create an Office of Examination Ombudsman responsible for any complaints from financial institutions about examiners.
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By Abby Gregory | 11/22/2011
Adding a new leadership position to a company division, Carrington Mortgage Services, LLC, has hired Brad Nease as its SVP of capital markets.
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By Abby Gregory | 11/22/2011
Moving into a new region, Churchill Mortgage Corp. recently announced its arrival in Jackson, Tennessee. The company's branch represents Churchill's first location in the city, and accordingly, the lender has also made several additions to its personnel.
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By Ryan Schuette | 11/21/2011
Mortgage giant Freddie Mac tied weak homebuyer demand to a drop in consumer expenditures in an outlook it released Monday. The GSE captured a look at the financial mood of consumers by releasing the U.S. Economic and Housing Market Outlook, which makes forecasts according to key economic indicators that it uses. The outlook indexed overall economic health for the nation, finding a small uptick by domestic aggregate demand as it climbed to 3.6 percent – the second largest gain over the last five years.
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By Abby Gregory | 11/21/2011
Lender Processing Services is under examination from the Nevada Attorney General for issues encompassing specific incidents with the company's document processing and practices. The state's Attorney General recently indicted two employees within LPS on 606 counts of fraud, alleging that the two forged signatures and notarization on mortgage-related paperwork.
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By Ryan Schuette | 11/21/2011
Defying forecasts for a slowdown, the national tally for bank failures this year hit 90 as two financial institutions went under in Iowa and Louisiana. State regulators shuttered Johnston, Iowa-based Polk County Bank and Lacombe, Louisiana-based Central Progressive Bank, appointing the FDIC receiver. Grinnell-based Grinnell State Bank and New Orleans-based First NBC Bank scooped up branches, assets, and deposits in purchase-and-assumption agreements. Century-old Polk County closed its doors.
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By Ryan Schuette | 11/21/2011
Low-balling appraisals, job loss, and denials for mortgage applications helped scuttle closed contracts over October, which advanced 13.5 percent.
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By Abby Gregory | 11/21/2011
One online lender is handling the refinancing rush by targeting borrowers who are eligible for the Home Affordable Refinance Program (HARP).
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By Abby Gregory | 11/21/2011
Customer satisfaction within the mortgage lending process is on the rise according to a recent survey that demonstrated a rise in origination-related consumer sentiment between 2010 and 2011. J.D. Power and Associates released statistics from its 2011 report, which examines how borrowers feel about the mortgage loan experience, and the company reports a 13-point increase despite tightening credit standards. J.D. Power yielded the findings in a U.S. Primary Mortgage Origination Satisfaction Study.
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By Ryan Schuette | 11/18/2011
After several weeks of intense deliberation, with backers and supporters on both sides, Congress again raised limits for Federal Housing Administration conforming loans to $729,750, which President Barack Obama signed off on Friday. House lawmakers included an amendment to raise the limits in a stopgap spending measure cobbled together by both houses to keep the government running through December this year. The House voted for the bill by a 298-121 margin, which the Senate followed with 70 yeas and 30 nays. Trade groups rushed to extol the raised limits.
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By Ryan Schuette | 11/18/2011
The Senate Banking Committee pressed nominees for the nation’s major financial services and housing agencies over a myriad of recent issues Thursday, with insolvency for the Federal Housing Administration and an increasing number of bank failures prevailing in discussions. The nomination hearing for the three Obama administration prospects – FHA commissioner-nominee Carol Galante, FDIC vice-chairman nominee Thomas Hoenig, and HUD deputy secretary-nominee Maurice Jones – quickly transitioned from congratulatory to tense and at times awkward.
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By Ryan Schuette | 11/18/2011
Even with a pickup in the general economy, overall growth will remain flat into the New Year, slowing any impact from the housing market and delaying significant changes, according to a think tank internal to Fannie Mae. The mortgage company described circumstances going forward as those vulnerable to weak jobs growth, external shocks from the euro zone, and pickups or drops in consumer spending and confidence. Troubled euro zone markets continued to weigh down on the forecast.
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By Ryan Schuette | 11/18/2011
Despite falling month-over-month, home sales crept forward by 9 percent year-over-year, according to a recent monthly housing report from RE/MAX. Home sales meanwhile declined 9.8 percent from September to October, even while sales prices fell 5.4 percent year-over-year – a bipolar trend that portrays the market as one slowly recovering from the financial crisis. The report found home sales rising for the fourth conservative month on an annual basis, as foreclosures plummeted for the sixteenth consecutive month.
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By Ryan Schuette | 11/17/2011
Joining the ranks of other prominent backers, Democratic members of the House Financial Services Committee, led in part by Rep. Barney Frank, wrote a letter to Senate Republicans chastising the lawmakers over their vow to keep the Consumer Financial Protection Bureau without a director. Democratic House members frequently cited CFPB associate director Holly Petraeus for her role in testifying before Congress about the need for a confirmed director.
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By Ryan Schuette | 11/17/2011
Steadying homebuilder confidence translated into less bad news for the housing market Thursday, as the Commerce Department reported that housing starts more or less hovered around expectations. October figures for single-family housing starts trumped estimates from September, with a seasonally adjusted annual rate of 628,000 beating expectations for 630,000. On a year-over-year basis, the boost in numbers reflects a 16.5-percent upward revision from a 539,000 housing units. Housing completions hovered around a seasonally adjusted 584,000.
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