Mortgage – HousingWire |
- Here are the top 10 mortgage lenders in 2021
- Pennymac to lay off 236 employees
- NY bill would change statute of limitations on foreclosures
- HW+ Member Spotlight: Arjun Dhingra
| Here are the top 10 mortgage lenders in 2021 Posted: 25 Mar 2022 01:48 PM PDT Home Mortgage Disclosure Act (HMDA) data, released Thursday by the Consumer Financial Protection Bureau, showed a reshuffle in the top 10 lenders by volume for 2021. According to an analysis of the HMDA data by Polygon Research application HMDAVision, the top 10 lenders by volume are:
The two top lenders, Rocket Mortgage and United Wholesale Mortgage, each maintained their positions. Rocket pumped out $340 billion in loans in 2021, 8.55% more than it did in 2020. Wholesale lender UWM originated $227 billion, but far exceeded Rocket in terms of growth. Its originations increased 24% from the year prior. Wells Fargo moved up one notch, originating $141 billion, a 11% increase from 2021. LoanDepot, too, moved from fifth to fourth most originations, increasing its volume by 36% to $136.7 billion. JPMorgan Chase rose from eighth to fifth greatest origination volume, with a 17% increase to $112 billion in loans. New Residential Investment Corp., which acquired Caliber Home Loans in August 2021, catapulted to sixth place. Combined, the two originated $105 billion in 2021, 13.5% more than in 2020. Freedom Mortgage was the only top ten lender to lose ground last year, originating nearly 10% less than it did in 2020, coming in at about $89 billion. Bank of America clawed its way up from ninth to eighth largest lender by volume, with about $84 billion in 2021. Homepoint and Guaranteed Rate both surged into the top 10, with Homepoint increasing its volume by a whopping 81% to $74 billion. Guaranteed Rate originated slightly less, at $73.8 billion, but still 25% more by volume than it did the previous year. HMDA data revealed sizable dip in refinances last year, while cash-out refis surged and lending to minority borrowers crept upward. Total originations in 2021 totaled about $4.47 trillion, HMDAVision shows. Volume of purchase originations, cash-out refinances and even home improvement loans were up from the previous year. Total purchase originations came in at $1.8 trillion in 2021, a nearly 25% increase from 2020. Homeowners tapped $866 billion of equity in the form of cash-out refinances in 2021. Refinances, however, in the face of a potential rate hike, decreased 16% to $1.6 billion. The HMDA data also show that minority lending inched upward in 2021. Minority borrowers accounted for 25.4% of the number of originations, compared to 23.2% in 2021. By volume, despite steeply rising home prices, the share of minority borrowers also grew to 27.1% from 24.7%. The share of minority borrowers for the top 10 lenders, at 30%, was markedly greater than that of the rest of the market. Recent research has shown that depositories lag nonbanks when it comes to minority lending. The post Here are the top 10 mortgage lenders in 2021 appeared first on HousingWire. |
| Pennymac to lay off 236 employees Posted: 25 Mar 2022 01:32 PM PDT California-based Pennymac Financial Services will lay off more than two hundred employees in the coming months, according to notices sent to the state's Employment Development Department on March 7. Pink slips will arrive for 236 employees at six different offices in five California cities, with the expected date of separation on May 6, the Worker Adjustment Retraining Notifications show. According to the company, bumping rights do not exist for these positions, and a union does not represent employees. In January, the company said it had 2 million customers and over 7,000 employees in 16 locations. Pennymac did not respond to a request for a comment. Two offices in Westlake Village will have a reduction of 96 jobs. Most of the positions to be eliminated are home loan specialists, including those with expertise in refinancing. But the company will also reduce top management jobs, such as VPs for risk and project management. In Roseville, where the company has a consumer-direct business and information technology organization, Pennymac will eliminate 81 positions. These layoffs were first reported in the Sacramento Business Journal. The company will also lay off 24 employees in Pasadena, 19 in Agoura Hills, and 16 in Moorpark. 3 questions lenders should ask before implementing non-QM With refinance volumes anticipated to decrease by 62% this year and many originators experiencing layoffs, lenders are looking for a way to diversify their offerings with non-QM products and gain new business in order to maintain profits. Presented by: Acra LendingPennymac has said it is making an effort to boost its consumer direct lending business. In January, the company announced it would invest $3.9 million to open a new mortgage origination center in Franklin, Tennessee, creating 325 jobs in Williamson County. Doug Jones, president and chief mortgage banking officer at Pennymac, said at the time the new facility would boost Pennymac's operations coast-to-coast "while supporting the organization's overall growth initiatives." The company estimates its market share in the consumer direct channel was 1.4% in 2021, compared to 2.3% in the broker channel and 16.8% in correspondent production, where it is the market leader. In loan service, it is at 4.1% of the market. Last year, Pennymac Financial Services posted record loan production but had a significant decline in net profits, as other top publicly traded originators saw their profits shrink, too. The nonbank reported a record $234.5 billion in unpaid principal balance in 2021, up 19% from 2020, its latest earnings report showed. The company reported a net income of $1 billion in 2021, down from its high of $1.6 billion the previous year. The post Pennymac to lay off 236 employees appeared first on HousingWire. |
| NY bill would change statute of limitations on foreclosures Posted: 25 Mar 2022 11:54 AM PDT A rule making its way through the New York Senate could significantly shorten the time allotted for a lender to initiate a foreclosure action. This may have ramifications on all lenders operating in the state of New York. A bill, dubbed the Foreclosure Abuse Prevention Act, sponsored by James Sanders Jr. (D) from the 10th Senate District, stipulates that once a lender has initiated a foreclosure action and accelerated the loan, they only have six years to complete a foreclosure. Currently, a lender operating in New York has six years to initiate a foreclosure action, but if the action is dismissed for any reason, a lender can de-accelerate a loan and then reinitiate a foreclosure action. This may no longer be an option. A vote on this legislation is expected next week and could result in a pool of properties that cannot be foreclosed on because the statute of limitations has expired, said Brian McGrath, partner at law firm Hinshaw & Culbertson. McGrath noted that there is a likelihood that it will be pushed through the Senate and once it is, it will apply equally to every lender and mortgage servicer that is trying to foreclose on a property in New York. "It is rare to find a lender or mortgage servicer with a nationwide portfolio that doesn’t touch the state of New York," he said. "New York is just traditionally one of the most frequent places lenders and servicers find themselves in based on just how portfolios are spread, population, etc." A look at key mortgage claims challenges servicers are facing Housing Wire sat down with Newbold Advisors Partner Robert Simpson to learn more mortgage claims in today’s servicing climate. Presented by: NewboldThe legislation states that it aims to "thwart and eliminate abusive and unlawful litigation tactics employed by foreclosure plaintiffs to the prejudice of homeowners throughout New York.” Specifically, the bill will overrule the Court of Appeals’ recent decision in Freedom Mortgage Corporation vs. Engel, where ” the ability to unilaterally manipulate, arrest, stop and restart the limitations period at will, [was put] directly in the hands of mortgage foreclosure plaintiffs and their servicers,” the pending rule argues. “No other civil plaintiff in this state is extended such unilateral and unfettered powers,” the bill reads. “As a direct result of Engel, trial and appellate courts throughout the State have been bombarded with a flurry of motions made by mortgage lenders and servicers to re-open cases.” Another important piece to this legislation, notes McGrath, is that it will be retroactively applied to all mortgage foreclosures in which a final judgement of foreclosure and sale has not been enforced. “If a court previously ruled on an issue where a lender improperly de-accelerated the loan before initiating their new action, a borrower could file a motion to reconsider that,” said McGrath. “When this bill happens, lenders are suddenly going to have some pool of their portfolios where lien loss risk exists where it didn’t prior to this legislation.” McGrath noted that there may also be some unintended consequences for borrowers if this rule goes into effect. If the bill passes, some institutions may decide that it is too risky to lend in New York, thereby limiting consumer choice. "The greater the risk you inject into the recoverability on a mortgage, should it go into default, the more difficult it is to lend in that state," said McGrath. Another consequence, said McGrath, is that lenders will tighten their underwriting requirements. "The more you move the needle on underwriting to basically rule out any chance of default whatsoever, the more people you close out of the lending market.” The post NY bill would change statute of limitations on foreclosures appeared first on HousingWire. |
| HW+ Member Spotlight: Arjun Dhingra Posted: 25 Mar 2022 05:23 AM PDT  This week's HW+ member spotlight features Arjun Dhingra, who serves as sales and business development at All Western Mortgage. Dhingra has over 20 years of experience helping homebuyers and real estate agents and is an expert when it comes to harnessing the power of social media to help educate and inform people on the home-buying process. Creating a large following on Instagram, he offers updates on the housing market, tips on the home-buying process and so much more. Below, Dhingra answers questions about the housing industry: HousingWire: What were some of your biggest takeaways from last year’s HW Annual event? Arjun Dhingra: Technology is not replacing us in the mortgage industry, it is enhancing and empowering us. Those that leverage technology to reach more, do more and provide more value will ultimately outlast the competition. Those that don't evolve and adapt, will be pushed out because of technology. Embrace it or be pushed out by it. HousingWire: Why do you think people should attend HW Annual this year? Arjun Dhingra: I feel everyone in our industry should attend because (1) it’s great to be back with people in person, (2) the presenters, speakers and authorities in our industries that you will hear from are not only impactful but incredibly collaborative, giving you access and opportunity to connect with them that you would otherwise never be able to have. Most importantly, it supports our industries of housing, technology, real estate and lending. HousingWire is an amazing resource to all of us and anything they are doing for our space is something that should be supported by all. HousingWire: What is your current favorite HW+ article? Arjun Dhingra: I am a super fan of Logan Mohtashami, so anything he writes or speaks about is something I will always look to absorb! HousingWire: If you had picked a different career path what would it be? Arjun Dhingra: If I had picked a different career path, it would have been acting. I was told by my high school theater teacher to skip that business school pursuit, drop everything and become an actor. Somehow ended up a mortgage banker! HousingWire: What has been one of the biggest learning opportunities in your career? Arjun Dhingra: My biggest learning opportunities in life/markets have come when there is real turmoil/challenge. The housing crash of '08 was a gut check and a real soul-searching evaluation of what purpose I really serve, who am I meant to help and how to best do it. HousingWire: What is your most useful tech tool? Arjun Dhingra: My most useful tech tool is my social media (all of it). It’s how I reach 1000's of new people every week, provide value at scale, and connect with so many industry professionals in a short time. I would not have a business or the ability to leverage other forms of technology to grow my business if not for these platforms. HousingWire: What's one thing that people aren't paying attention to that you think they should be paying attention to? Arjun Dhingra: One thing that people were not paying attention to but it’s quite clear now that it’s going to be here with us for a while is inflation. For so long, the government dismissing it as transitory or not a permanent thing was giving the general public a false sense of security about the state of affairs. Now it is screamingly obvious to everyone that it is a household term and not going anywhere, so everyone is paying attention (no pun intended with "paying") and seeing it show up in their daily life (gas prices, etc.). HousingWire: What do you think will be the big themes for the housing market in 2022? Arjun Dhingra: I think for housing it will still be all about inventory and interest rates. Rates have trended up sharply here to start the year and will continue to do so until inflation gets under control. A recession could potentially arrive later this early or early next year — either by way of inflation itself or a general slowing of the economy overall. In either scenario, we could see mortgage rates actually decrease, so that is something I am paying particular attention to because it leads into the inventory spotlight. Inventory will remain tight but the relationship between itself and pronounced buyers will level off due to rising rates and some buyers exiting or pausing their searches. This is not a bad thing for the market, but if rates were to decrease, you would see the "frenzy" from years past ensue all over again with more buyers flooding the market and still a low inventory situation. To learn more about HW Annual 2022, click here. To become an HW+ member, click here. For more information on HW+ benefits, click here. To view past issues of our HW+ exclusive HousingWire Magazine, go here. The post HW+ Member Spotlight: Arjun Dhingra appeared first on HousingWire. |
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