Mortgage – HousingWire |
- loanDepot’s CEO picks up pricey real estate in Florida
- Regulators slap mortgage LOs with fines for skipping class
- Forbearance rate drops below 1.5%
- Private-label sets a furious pace to start 2022
- Milo launches a crypto mortgage product
- Here’s how one mortgage lender gives back to service members
- What happens when forbearance ends?
| loanDepot’s CEO picks up pricey real estate in Florida Posted: 18 Jan 2022 02:01 PM PST Anthony Hsieh, the CEO of loanDepot, has been buying some pricey real estate in Florida, pushing his portfolio of properties to over $150 million. As was first reported by the The Real Deal, Hsieh has dropped approximately $50 million dollars on two properties located in Miami since the start of this year. He paid $30 million for a waterfront mansion on Star Island — a man-made island in Biscayne Bay, infamous for attracting rich and famous homebuyers — and $19.5 million for a condo in Miami. In December 2021, a home on Star Island sold for $75 million, setting a record for the priciest real estate ever sold in Miami. Throughout much of last year, Miami ranked as the top migration destination for homebuyers, a Redfin report published in December 2021 said, noting that the net inflow into Miami has nearly tripled year over year. “More than half of my active clients are either investors or people who are relocating, coming from places like California, Oregon, New York and New Jersey,” said Christina Llanos, a Miami Redfin agent. Hsieh's fortune is estimated to be in the $2 billion range, according to the Bloomberg Billionaires Index, and a good chunk of it is invested in residential real estate. In June 2021, Hsieh paid $25 million for a mansion in Henderson, Nevada, the most expensive home purchase to ever be recorded in Southern Nevada. In 2020, Hsieh dropped $61 million for a mansion in Orange County and in 2014, he paid $16 million for an 8,000-square-foot mansion on Linda Isle. loanDepot, the nation's second-largest nonbank retail mortgage lender, went public last February, selling 3.85 million shares at $14 and raising $54 million. The company filed reports that showed its revenue grew from $1.3 billion in 2019 to $4.3 billion in 2020, according to Securities and Exchange Commission filings. The company originated about $100.7 billion in loans in 2020. The California-based lender is expected to report its fourth-quarter earnings on Feb. 1. The post loanDepot’s CEO picks up pricey real estate in Florida appeared first on HousingWire. |
| Regulators slap mortgage LOs with fines for skipping class Posted: 18 Jan 2022 02:01 PM PST More than 400 mortgage loan originators will pay penalties after a multi-state investigation alleged they falsely claimed they completed an annual continuing education requirement. LOs in 42 states who settled with state regulators will pay on average about $2,700 each — $1,000 for each state they are licensed in — for skipping the annual eight-hour course. They must also surrender their licenses for three months and take additional educational programs. The 26-state investigation, which the California Department of Financial Protection and Innovation led, picked up on the discrepancies using a digital tool to check fulfillment of NMLS requirements. The effort found loan officers failed to fulfill a continuing education requirement, which varies by state, meant to enhance consumer protection and reduce fraud. The LOs implicated in the investigation all paid for educational programs from Carlsbad, California-based firm Real Estate Educational Services (REES), regulators said. The firm, owned by Danny Yen, was licensed to provide Nationwide Multi-State Licensing System education, but instead orchestrated two education schemes. For more than 600 loan officers, state regulators allege Yen either took the classes in exchange for compensation, or gave them class credit without requiring the LOs show up to class. State agencies in California, Maryland and Oregon have started separate administrative actions against Yen, and he could face fines of up to $3.4 million, officials from the Conference of State Bank Supervisors and CDFPI said during a briefing Tuesday. According to the REES company website, a three-hour online course giving a "basic understanding of Fair Housing and Discrimination law" can be purchased for $19. Yen was only licensed to give in-person classes, CSBS officials said. Calls to REES and Danny Yen Tuesday afternoon went unanswered. Although the investigation found 608 LOs did not complete their requirements, only 441 have entered into settlements so far. States have already taken disciplinary actions against 14 of the 167 LOs that refused to settle with the task force. Regulators said additional actions will be filed in the coming months. Although the loan officers who settled with state regulators face a three month "cooling off" period, the mortgages the LOs have already originated are not in question. State regulators said the loans were "valid," because the LOs had valid NMLS licenses at the time. Officials stated there was "no indication of consumer harm." But it is less clear what will happen to the mortgages the loan officers currently have in their pipelines. Mortgage companies with loan officers that were part of the settlement who have loans in progress should contact their appropriate state regulator, the officials said. The loan officers spanned 44 states and represent a broad swath of the mortgage industry, said Ed Gill, senior deputy commissioner of the CDFPI. The LOs were not concentrated in any particular segment of the market, and included a wide array of companies, Gill added. No action is being taken against the companies that employed the LOs. "Mortgage loan originators are responsible for guiding consumers through the single largest financial transaction in their lifetime," said DFPI Commissioner Clothilde Hewlett. Hewlett added, these actions "remind the mortgage industry of their obligations to be ethical, honest and forthright." The post Regulators slap mortgage LOs with fines for skipping class appeared first on HousingWire. |
| Forbearance rate drops below 1.5% Posted: 18 Jan 2022 12:52 PM PST Servicers' forbearance portfolio volume dropped in December to a level below 1.5% for the first time in 18 months. The total number of loans in forbearance decreased by 26 basis points, to 1.41% in December from 1.67% in November, according to the Mortgage Bankers Association (MBA). The most notable decline was in the portfolio loans and private-label securities (PLS) category, dipping by 51 basis points to 3.43%. Ginnie Mae loans in forbearance decreased 47 bps, at 1.63% of servicers' portfolio volume. Meanwhile, Fannie Mae and Freddie Mac loans dropped by eight basis points to 0.68%. The survey included data on 36.5 million loans serviced as of Dec. 31, 73% of the first-mortgage servicing market. Marina Walsh, MBA's vice president of industry analysis, said in a statement that, with the number of borrowers in forbearance continuing to decrease below 750,000, the pace of monthly forbearance exits reached its lowest level since MBA started tracking exits in June 2020. Total forbearance requests were 0.15% of servicing portfolio volume in December, while exits represented 0.39% of the total. The survey also shows that 23.2% of total loans were in the initial stage last month, and 63.1% were in a forbearance extension. The remaining 13.7% were re-entries. "It is likely that the remaining borrowers in forbearance have experienced either a permanent hardship that may require more complex loan workout solutions, or they have encountered a recent hardship for which they are now seeking relief," Walsh added. During the last 18 months, MBA's data revealed that 29.1% of exits resulted in a loan deferral or partial claim. Also, 19.5% represented borrowers who continued to pay during the forbearance period. However, 16.9% were borrowers who did not make their monthly payments and did not have a loss mitigation plan. The survey also shows that loans serviced not delinquent or in foreclosure were 94.85% in December, up from 94.58% in November. The post Forbearance rate drops below 1.5% appeared first on HousingWire. |
| Private-label sets a furious pace to start 2022 Posted: 18 Jan 2022 12:33 PM PST  A total of 10 new private-label securitization deals backed by more than 9,500 mortgages valued collectively at nearly $5.4 billion have already hit the market over the first few weeks of 2022, according to a new analysis by HousingWire. The residential mortgage-backed securities (RMBS) deals are spread across the three major buckets of the private-label market — jumbo-loan, investment-property and non-QM deals. Jumbo loan securitizations dominated the pack so far in January, with a total of five deals backed by nearly 3,700 loans valued at $3.3 billion. Next are private-label offerings backed by investment properties, with a total of three deals involving nearly 4,600 loans valued at $1.4 billion. Finally, there have been two non-QM deals to date, backed by about 1,250 mortgages valued at $674 million. "There's a rush to the door because everybody’s thinking about that expected March [Federal Reserve] rate hike," said John Toohig, managing director of whole-loan trading at Raymond James. "A lot of issuers want to get their deals priced before we see rates move." The Mortgage Bankers Association is projecting that the Fed will boost short-term interest rates three times this year, and three times again in 2023. The fed funds rate is projected to jump to 2.5% by 2024, with the MBA predicting that the 30-year mortgage rate will hit 4% by the end of 2022. The issuers behind the jumbo-loan securitization deals year to date as of mid-January 2022, based on an examination of bond-rating agency reports, are as follows: Goldman Sachs; Guaranteed Rate; Rocket Mortgage (through its Woodward Capital Management affiliate); Redwood Trust (through its Sequoia program); and Wells Fargo. We can expect even more private-label action in the weeks ahead, according to industry players. Redwood Trust President Dashiell Robinson agrees. He said Redwood expects the recently announced higher loan fees set to take effect April 1 will drive non-agency origination volumes higher, "generally offsetting the projected decline from the higher conforming loan limits," which now approach $1 million in high-cost counties around the U.S. Robinson also said the new loan-level price adjustment for second homes "is a logical surrogate for the prior cap" on Fannie Mae's and Freddie Mac's purchases of second homes — a cap which was suspended last fall. "[The loan-fee bumps] provides additional subsidy in a more predictable pricing fashion for origination," Robinson added. "Overall, 2022 supply outlook industry-wide for non-agency RMBS is positive." MAXEX reports that a total of 17 issuers priced 89 jumbo deals in the private-label market in 2021 that were valued in total at nearly $52 billion — compared with 42 offerings by 13 issuers the prior year valued at $18.6 billion. The value of transactions backed by investment properties, including second homes, totaled more than $25 billion last year, according to data from Kroll Bond Rating Agency (KBRA) and MAXEX. Finally, the two non-QM RMBS offerings in 2022 so far were sponsored by Ellington Financial Inc. and New Residential Investment Corp. — a real estate investment trust and affiliate of lender NewRez LLC. Non-QM mortgages include loans that cannot command a government, or "agency," stamp through Fannie Mae or Freddie Mac and typically make use of alternative-income documentation because borrowers cannot rely on conventional payroll records or otherwise fall outside agency credit guidelines. "We just see the [non-QM] market overall growing, especially as the mortgage industry grapples with a slowdown in agency refinancing [volume because of rising rates] and more lenders turn their attention to the non-QM space," said Manish Valecha, head of client solutions for Angel Oak Capital, an affiliate of Angel Oak Cos. — a major player in the non-QM market. Dane Smith, president of Verus Mortgage Capital, another non-QM lender, said he expects total non-QM private-label issuance for 2021 to tally about $25 billion, with 2022 issuance forecast to grow to over $40 billion. "While we do believe the [non-QM] market is extremely strong, we see the potential for volatility in the face of fed tapering and changes in interest rate policy," Smith adds in a note of caution. "Despite the potential for increased volatility on the horizon, we believe the market is mature enough to digest higher issuance effectively and continue its growth." A recent report by the Urban Institute's Housing Finance Policy Center shows the private-label market's share of mortgage securitizations has increased gradually since the global financial crisis, growing from 1.83 percent in 2012 to 5 percent in 2019. "In 2020 [as the pandemic took root], the non-agency share dropped to 2.44 percent and, as of September 2021, it stood at 3.79 percent," the report states, noting Fannie and Freddie still dominate the mortgage securitization market with of a 96.21% share as of that date. KBRA projects that 2022 private-label issuance will reach $132 billion, up from an estimated $115 billion for 2021. That estimate came prior to FHFA announcing its loan-fee increases. RMBS issuance, for the purposes of the KBRA report, includes all post-crisis prime, non-prime and credit-risk transfer transactions sponsored by government-sponsored enterprises (GSEs) Fannie and Freddie. "I would bet in 2022 you’ll see more of a move in that direction, which is going to push more deals into the private-label market." The post Private-label sets a furious pace to start 2022 appeared first on HousingWire. |
| Milo launches a crypto mortgage product Posted: 18 Jan 2022 12:17 PM PST Milo, a Miami-based digital lender, will soon offer a crypto mortgage to clients with digital assets. And the company claims that there is already a waitlist for the product. According to Milo's press release, clients who use the company's services can pledge their Bitcoin to purchase a property. The company notes that this way, homebuyers can continue to own their Bitcoin and diversify into real estate, while potentially pocketing the price appreciation of both. If a client qualifies, they will receive a low interest rate 30-year crypto mortgage, the company said. And unlike conventional mortgages, there are no down payment requirements. "Clients will be able to finance 100% of their purchase…and do this faster than a conventional mortgage," the company said. "By combining the security of real estate with the liquidity of digital assets, Milo is able to bridge both the crypto and real world." Josip Rupena, CEO of Milo, said in a statement that a crypto mortgage is one of the ways that consumers can invest the estimated $2 trillion in crypto wealth. "The existing ways for crypto consumers to access home credit has left them with unintended tax liabilities of selling for a down payment or worse the opportunity cost of seeing their crypto increase in value," Rupena said. "There are countless stories of people buying property with bitcoin proceeds only to see it increase in value and be worth millions more.” In September 2021, United Wholesale Mortgage announced that it accepted its first-ever cryptocurrency mortgage payment. Five more cryptocurrency mortgage payments were evaluated and accepted in October 2021. And in August 2021, Figure Technologies and Homebridge Financial Services announced that they would be merging, in part to integrate Figure’s blockchain technologies into the origination space. Long term, the blockchain technology would allow Homebridge and Figure to handle mortgage transactions through cryptocurrencies instantly. The post Milo launches a crypto mortgage product appeared first on HousingWire. |
| Here’s how one mortgage lender gives back to service members Posted: 18 Jan 2022 10:25 AM PST  About five years ago, Linthicum, Maryland-based NFM Lending was looking for a way to shift from sporadic donations to service members to a dedicated effort that regularly recognized their sacrifice. Their answer was the creation of the NFM Salute, an initiative in which one military member or veteran is selected each month to be honored as the "Salute of the Month." Selected from nominations on the NFM Salute website, the honorees receive a thank-you gift and have a $2,500 donation made in their name to a military-focused charity. Gregory Sher, chief business development officer of NFM Lending, emphasized the importance of this initiative, saying, "So much is sacrificed by those who serve. The vow our service members take to protect our freedom above all else is the most sacred vow. "The risks these Americans take should never be taken for granted and should always be honored. We must do our part," Sher added. The salute of the monthFor the October Salute of the Month, the initiative honored the mother and stepfather of fallen U.S. Marine Corps Lance Corporal David Lee Espinoza. As part of the initiative, the family chose to donate the $2,500 to the Gary Sinise Foundation, which gives aid to those wounded in combat, on behalf of Espinoza. Espinoza was one of 13 U.S. servicemen and women killed on August 26, when a suicide bomber detonated an explosive device at the Kabul International Airport. In an interview with Espinoza's mother, Elizabeth Holguin, and his stepfather, Victor Dominguez, for NFM TV, a media division of NFM Lending, Holguin expressed that her level of anxiety was elevated leading up to the day of the bombings. "When he was in Jordan, of course, I was worried. Like any deployment, as a mother, you worry. But he would FaceTime over there and he would say it was very calm. So I learned how to live with it. But once he moved to Afghanistan for that week, we were just counting the days for August 31 when they were all coming back," Holguin said. During the interview, Holguin honored the memory of her son, sharing her son's passion for the military. "He made me so proud, always did. He's my American hero. He was doing what he loved so I can't be prouder than that," she said. "He loved it, he embraced [being a Marine]. You know what he did, and so as parents, we couldn't be prouder of him," Dominguez said. "I know the situation that happened is not what you would expect as a parent, but knowing he lived and did what he loved, that means a lot to us." Espinoza was posthumously awarded the Purple Heart, Combat Action Ribbon, Afghanistan Campaign Medal, Sea Service Deployment Ribbon, and Global War on Terrorism Service Medal. The impactAccording to Sher, the families are not the only ones impacted by the salutes but so is the NFM Lending staff. "Probably the biggest surprise around the salutes is just how many of our employees have a close connection to service members," he said. It fosters a "common admiration and interest that shows up in various ways, like when employees nominate salutes and volunteer to go to the airport to welcome back plane loads of troops and hand out goodie bags," he said. In addition to the NFM Salute, NFM Lending has been sending troop boxes overseas to soldiers for 13 years. Each box is filled with snacks and non-perishable foods, with the money for the contents donated by the company's employees. "We never once in 13 years across multiple initiatives have asked for any business or tied the two together in any way." Sher continued. "Yes, we are a mortgage lender, and we do veteran loans, but we're grateful Americans first." When asked which salute stood out the most, he recalled the February 2020 NFM Salute. That month featured fallen Army Sgt. Eric Houck, who was killed in Afghanistan in 2017 when Houck and two fellow soldiers were gunned down by an insider attack in Afghanistan. Houck's family also choose to donate the $2,500 to the Gary Sinise Foundation on his behalf. Prior to the interview with NFM TV, Eric Houck's father, Mike Houck, went to meet Sher and his team at the NFM headquarters. "When Mike was taking the tour of our building, many of our employees rose up out of their chairs…some applauded, while several others embraced him," said Sher. "We all cried together. It was one of the most pure displays of compassion you'll ever see." Discussing why his son chose to join the army, Mike Houck stated, "He could probably have achieved anything he wanted to, but he felt this was his way to take care of his family." "Sometimes I honestly still feel like we are alone, but when people like you and your organization decide to honor Eric, that makes me feel like we're not alone. I don't want to say that it's upsetting, but people can just go through their normal day," Lisa Houck said during the interview with NFM TV. "It's hard to go through our normal day because it's a loss, it's a heartache that will never heal. You try to find things that make you happy and it's really hard to because you're just missing such a love that was a part of you. It will never heal…but Eric's alive in us, because we have him in our heart." Houck posthumously earned the Bronze Star Medal, Purple Heart, Combat Action Badge, and Army Commendation Medal with a second oak leaf cluster for his end-of-tour awards. Reflecting on the impact of the NFM Salute, Sher said, "We have worked very hard to make sure the stories we share are impactful to our audience and to those we honor." "The biggest impact we've made is on the families who have lost their loved ones while serving," he said. "They tell us there's a certain peace that comes with being able to share the legacy of their fallen heroes." This article was first featured in the Dec/Jan HousingWire Magazine issue. To read the full issue, go here. The post Here's how one mortgage lender gives back to service members appeared first on HousingWire. |
| What happens when forbearance ends? Posted: 13 Jan 2022 01:08 PM PST This video is part of our HousingWire 2022 forecast series. After the series wraps in January, join us on February 8 for the HW+ Virtual 2022 Forecast Event. Bringing together some of the top economists and researchers in housing, the event will provide an in-depth look at the predictions for this year, along with a roundtable discussion on how these insights apply to your business. The event is exclusively for HW+ members, and you can go here to register. In this video interview, HW+ Managing Editor Brena Nath sits down with Marina Walsh, vice president of Industry Analysis Research and Economics at the Mortgage Bankers Association, as she breaks down whether or not the industry is ready for the end of forbearance, along with some broad trends from the MBA’s weekly forbearance report. Watch the full session below and here is a small preview of the interview, which has been lightly edited for length and clarity: Brena Nath: What else do you think people need to know when it comes to the year ahead? Is there anything that you think they should keep in mind or be paying attention to? Marina Walsh: I think it’s important to understand the options available to borrowers once they exit forbearance, and that’s an indicator of what could potentially come in 2022. For instance, we have loan deferrals, partial claims, which are basically an interest-free loan that gets tacked on to the end. When you pay off your loan, it becomes due. I think options, like modifications, provide a good sounding board, along with all the other options that are being made available, particularly for FHA borrowers who were hardest hit by this crisis. I think going forward it’s going to be a soft landing. We do not anticipate wide-scale foreclosures, for example. We just think with home price appreciation, with all the workout options available, with wage growth, with all of the great economic data coming out in regard to unemployment. There’s a lot of opportunities for borrowers to get back on their feet if they were in forbearance. The post What happens when forbearance ends? appeared first on HousingWire. |
| You are subscribed to email updates from Mortgage – HousingWire. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment