Mortgage – HousingWire |
- Lenders, tech firms hire executives to navigate down market
- Wyndham Capital Mortgage to have a new round of layoffs
- Foreign investors play key role in MBS market
- Haunted by zombie properties, Ocwen settles lawsuits
- Doorway Home Loans to merge with Priority Mortgage
| Lenders, tech firms hire executives to navigate down market Posted: 10 Jun 2022 12:09 PM PDT Lenders and mortgage tech companies have been cutting costs in the down market, but some firms have hired new executives who they hope will provide better strategies to navigate the shrinking loan origination market. Motto Mortgage, a national mortgage brokerage franchise, and wemlo, a mortgage processing solution with an all-in-one digital platform, tapped Chris Erickson as vice president of product and strategy for both brands this week. Mortgage lender and servicer Planet Home Lending also named Kathryn Edelen as regional vice president of its sales division this week. Erickson will be in charge of product management, the procurement and advancement of technology solutions and will oversee the training department and support teams for Motto Mortgage and wemlo. For the Motto brand, Erickson will focus on streamlining the product ecosystem for franchisees. For wemlo, his primary focus is to enhance the existing loan processing platform to improve user experience.  "His extensive industry experience has allowed him to learn the challenges originators and consumers face in the home buying experience and he will work to develop solutions that improve and streamline the process for our franchisees and customers," said Ward Morrison, president and chief executive officer at Motto Franchising and wemlo. Erickson brings nearly two decades of experience to his new role. His previous positions include vice president of product management at Guaranteed Rate, head of product for rental property solutions at CoreLogic and assistant vice president and product manager for Mr. Cooper. Real estate firm RE/MAX acquired Motto Mortgage in 2016 to create a “one-stop-shop” in which homebuyers can work with both a real estate agent to find a home and a Motto Mortgage loan originator to secure financing, according to RE/MAX. RE/MAX and Motto were having trouble hiring experienced processors, so about four years ago they bought wemlo, which has a platform connecting mortgage brokers and loan originators to a processing network. Kathryn Edelen, who will manage the Eastern U.S. for Planet Home Lending, will focus on increasing market share by adding branches and loan originators. Edelen most recently was a regional sales manager at Nations Lending. She also has served as vice president for loanDepot and regional manager for Homebridge Financial Services. She started in operations more than three decades ago and built her career as a mortgage loan producer processing $100 million a year, before becoming a branch manager.  “As the market tightens, it is important to educate and equip teams with knowledge and products that improve efficiency and support market growth,” Edelen said in a statement. Planet recently introduced a new team in Portland, Oregon, which will focus on borrowers looking to work with homebuilders. The firm plans to open other offices in the state, including in Salem, Eugene and Medford, Planet representatives said last month. Floify, a subsidiary of Porch Group providing loan origination point of sale (POS) tools and solutions, appointed Sofia Rossato as president and general manager and Dan Goldman as vice president of sales. Rossato will focus on enhancing Floify's operations, growth and performance. Goldman will be responsible for Floify's sales development strategies.   Before joining Planet, Rossato was CEO of the chat platform SnapEngage and chief operating officer of the information division at MarkIt. Goldman held leadership positions at firms including First Integrity Mortgage Services, Lenders One Mortgage Cooperative and Pacific Union Financial. Seattle-based proptech firm Porch Group acquired Floify for $90 million in October 2021 in a deal in which Porch paid $76.5 million in cash and $10 million in common stock. At the time of the acquisition, Porch said Floify's brand will remain intact and its 47 employees won't be forced to relocate. Floify's software, which streamlines the loan origination process by allowing document sharing communication between loan officers and real estate agents, helped more than 77,000 mortgage applications close each month in 2021, according to the firm. The post Lenders, tech firms hire executives to navigate down market appeared first on HousingWire. |
| Wyndham Capital Mortgage to have a new round of layoffs Posted: 10 Jun 2022 11:54 AM PDT Consumer direct lender Wyndham Capital Mortgage is doing a new round of layoffs, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the North Carolina Department of Commerce. The company said it will lay off 48 employees beginning on August 1. The staff either work in the lender headquarters in Charlotte, North Carolina, or remotely and report to the location. "Of these impacted employees, 38 work out of the facility or hybrid (office & remote) in North Caroline & South Carolina, and 10 are fully remote employees living in other states outside of the Carolinas," Angela Fumo, senior vice president of human capital, wrote in the WARN notification reviewed by HousingWire. Founded in 2001 by Jeff Douglas, Wyndham positioned itself as a fintech-focused mortgage lender with a proprietary software system that allows the company to close loans 20% faster than the national average. The lender originates loans in 47 states and Washington, D.C., both conventional and Ginnie Mae-backed loans. The company claims it has 350 employees and has served 100,000 borrowers. Last year, taking advantage of lower mortgage rates and a refi boom, Wyndham actively expanded, opening two hubs in Dallas and Phoenix, which pushed its office count to five. The company also launched a retail division in July 2021 and hired former Citi executive Karen Mayfield in August to lead the national effort. However, like other lenders with consumer direct models, the company tends to be refi-heavy and relies on call centers for intake, struggling to find footing in a purchase market as rates climb and margins start to compress. In January, Wyndham had a round of layoffs when pink slips arrived for 35 loan officers across its offices in Dallas, Charlotte, Salt Lake City, Kansas City and Phoenix. Like Wyndham, other lenders cut jobs in the second half of 2021 and the first quarter of 2022 in preparation for higher mortgage rates and reduced refinance volume. Purchase mortgage rates reached 5.23% this week – and some of those same lenders are making further cuts. As the market contracts, originators Interfirst Mortgage Co. and Better.com are implementing their second and third round of layoffs, respectively. These companies are part of a larger list of companies cutting staff, including Wells Fargo, Pennymac, Mr. Cooper, loanDepot, Guaranteed Rate, Fairway Independent Mortgage, and Movement Mortgage. The post Wyndham Capital Mortgage to have a new round of layoffs appeared first on HousingWire. |
| Foreign investors play key role in MBS market Posted: 10 Jun 2022 10:43 AM PDT The Federal Reserve's (Fed) efforts to beat back inflation with its monetary tools have already shifted the winds in the secondary market for mortgage-backed securities (MBS). The Fed's continuing effort to wind down its $2.7 trillion MBS portfolio helps fuel widening interest-rate spreads in the MBS market by creating additional MBS supply to be absorbed by investors. That increased supply, in turn, puts downward pressure on bond prices while expanding yields for investors, who will seek higher coupons on new issuance. Left unchecked, those dynamics can make it much harder for issuers to execute MBS securitization deals at desired margins, particularly in the current rising-rate environment. Added MBS supply is not really a concern, however, according to some market experts — given the MBS market is very liquid. Experts are convinced there will be buyers, even if MBS supply expands. Foreign investors represent one large bucket of MBS buyers who could step up to absorb additional MBS as the Fed sheds its holdings. On that front, according to data from the U.S. Treasury Department, investors from Asian nations lead the charge when it comes to current holdings of "agency" MBS, issued by government-sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac, or by Ginnie Mae, which is part of the Department of Housing and Urban Development. MBS are issued through private "non-agency" entities using the so-called “private-label market,” as well as via the agency channel. The latter, however, accounts for about 94% of all residential MBS issuance in the country. MBS are created by issuing bonds backed by pools of mortgages. Three Asian nations in particular — China, Taiwan and Japan — currently are the top holders of agency MBS. And, it appears, foreign investors in general have the potential to up their game in the MBS market. "Recently we commented on the potential for various investor market segments to increase their holdings of MBS as the Federal Reserve winds down its portfolio," according to a recent report from mortgage-data analytics firm Recursion. "An interesting category is foreign investors. "At the end of 2018, when the Fed initiated its QE [quantitative easing] program, foreign investors held about 17% of outstanding MBS, and this has fallen to a little less than 12% at present. Most of the decline occurred in the wake of the global financial crisis when mortgage-related securities were revealed to be riskier than generally believed." As of March, foreign investors from across the globe owned $1.15 trillion in U.S. agency bonds, which are securities issued by the GSEs and other U.S. government agencies, excluding the U.S. Treasury. The bulk of U.S. agency bonds are MBS. Figures from the Treasury Department in March showed Asian nations account for $813.2 billion of U.S. agency bond holdings, or nearly 71% of the total held by all foreign investors. Foreign investor MBS holdings in three nations accounted for $712.7 billion of the total for all Asian countries, or nearly 88%. Those three nations, again, with their March MBS holdings, were Japan, $259.8 billion; Taiwan, $233.3 billion; and China, $219.6 billion, according to Treasury Department figures. Although China ranked third in March among the three Asian nations in terms of U.S. agency bond holdings by foreign investors, it ranked as the largest net purchaser of bonds for that month, at $18.8 billion. China was followed by Taiwan, at $3.9 billion in net purchases; next was Japan — investors from which sold $494 million more U.S. agency bonds than they purchased in March. "A tentative conclusion is that so far, neither inflation risk or house price risk or heightened geopolitical risk is leading to a wholesale exit from the MBS market on the part of foreign investors," the Recursion report notes. For now, the Fed is not purchasing new MBS to hold in its portfolio, and it also is allowing a portion of its existing portfolio to run off its books as those securities mature. "They're going to let their mortgage-backed security portfolio prepay without being reinvested, and there will be a cap of $35 billion [a month] starting at half that for the next three months," said Seth Carpenter, chief global economist at Morgan Stanley, during a recent presentation at the Mortgage Bankers Association's (MBAs) Secondary and Capital Markets Conference & Expo in New York City. Regardless of how the Fed proceeds in shrinking its MBS portfolio, however, Mike Fratantoni, chief economist for the MBA — who also spoke at the MBA conference held in mid-May — expressed confidence the MBS market will weather the storm. He described it as the "second most liquid market in the world." "There are buyers domestically and abroad for mortgage-backed securities," he added. The post Foreign investors play key role in MBS market appeared first on HousingWire. |
| Haunted by zombie properties, Ocwen settles lawsuits Posted: 10 Jun 2022 09:31 AM PDT Nonbank mortgage lender and servicer Ocwen Financial Corp. and its subsidiary PHH Mortgage agreed to pay more than $665,000 to settle multiple lawsuits filed last year by three cities in New York state regarding the maintenance of zombie properties. In 2016, New York passed a law establishing that lenders and servicers must inspect, secure and maintain zombie properties — which are defined as vacant and abandoned homes whose owners are behind on their mortgage payments. In 2019, then-Gov. Andrew Cuomo signed a Senate Bill authorizing cities, villages or towns to force the lender or servicer to either promptly foreclose the property or release its mortgage. The law allows municipalities to sue companies for $500 per code violation per day until it is resolved. Under New York State regulations, the cities of Albany, Schenectady and Troy in July 2021 filed a total of 18 lawsuits against Ocwen and PHH, covering 18 properties and 502 New York state building code violations. In a joint announcement, the three cities noted Ocwen and PHH are among the capital region's largest mortgage servicers of zombie properties. Ocwen was the 35th largest lender in the country in the first quarter, originating $4.6 billion, according to Inside Mortgage Finance. The company also is No. 16 among the top servicers in the U.S., with a $138 billion portfolio as of the end of March. Dico Akseraylian, a spokesman for Ocwen, said the company is pleased to resolve the case with the three cities. "We continue to work cooperatively with them and other municipalities, including as a member of the Erie County Zombie Task Force in Western New York," Akseraylian said in an email. According to the three cities, the case sent a strong message to other servicers: They must adequately maintain zombie properties or bring foreclosure proceedings to a timely completion. "This enforcement action puts mortgage servicers and banks on notice that if vacant properties aren't maintained, they will be held accountable," said Gary McCarthy, mayor of Schenectady, according to a statement. While the three cities have been awarded more than $665,000, the settlement also requires Ocwen and its subsidiary to pay an additional $200,000 to the three towns should they violate the agreement. Whiteman Osterman & Hanna LLP represented the cities in the case. During the Great Recession, zombie properties were a thorn in the side of servicers. With no money to pay their mortgages, some underwater borrowers abandoned their homes, negatively affecting their neighbors’ quality of life. Industry observers said many servicers and lenders delayed the foreclosure of such properties because they wanted to see if the property values went up. But, since the financial crisis, states and municipalities have approved laws to make these companies responsible for maintaining vacant properties. When the Covid-19 pandemic began in March 2020, zombie properties were one of the industry's greatest fears. That's not been the case so far, however. Data provider ATTOM estimates 7,569 residential properties facing possible foreclosure have been left vacant by their owners nationwide in the second quarter of 2022, up 2.8% from the prior quarter but down 6.3% from the same quarter in 2021. "The incidence of zombie foreclosures tends to be higher in cases where the foreclosure process has dragged on for many months and sometimes even for years," said Rick Sharga, EVP of market intelligence at ATTOM, in a statement. In some states where foreclosure occurs via a judicial process, it can drag on for years in some cases. The post Haunted by zombie properties, Ocwen settles lawsuits appeared first on HousingWire. |
| Doorway Home Loans to merge with Priority Mortgage Posted: 10 Jun 2022 07:34 AM PDT Mortgage lenders Doorway Home Loans and Priority Mortgage Thursday announced a merger, the latest of many such deals made during a challenging mortgage market. The companies did not disclose the financial terms of the agreement. Both companies have more than 30 years of experience in residential direct lending, but want to expand market reach and create greater efficiency. Priority Mortgage was founded in 1984 in Worthington, Ohio. Doorway Home Loans — founded just three years later, in 1987, by Kirk Hankla in Long Beach, California — will expand geographically through the transaction. With licenses in 30 states, the merger will allow the company to establish a presence in new markets, particularly in the Eastern U.S. "Establishing an Ohio presence will balance out Doorway's West Coast high-balance production and expand operational support to our eastern-region teams," said Matt Danilowicz, CEO of Doorway Home Loans, according to a news release. Danilowicz will remain CEO of Doorway Home Loans, per terms of the deal. Josh Hill, CEO of Priority Mortgage, will join Doorway's executive team as its Chief Technology Officer. The executive has a degree in computer science from the Ohio State University and more than 15 years of experience in information technology. For Priority, Hill said the overall deal expands marketing, communications and POS systems. "Our originators will now have access to a broader set of loan products to serve their borrowers," Hill said in a statement. Doorway will continue operating under its name, while Priority's loan originators and operations staff will become part of Doorway, going to market under its new moniker: "Priority Mortgage Team, Powered by Doorway Home Loans." The companies will combine the loan production of both businesses under Doorway Home Loans' Fannie Mae and Ginnie Mae authorizations. Industry observers expect mergers and acquisitions in the mortgage market this year, as rising mortgage rates and declining refinancing volumes affect lenders' earnings. In late April, HousingWire reported Ohio-based CrossCountry Mortgage has entered into an agreement to acquire California-based retail lender LendUS. In the tech space, Intercontinental Exchange, Inc., a software and data company with a mini-empire including ICE Mortgage Technology, in May announced it intends to acquire Black Knight in a $13.1 billion mega-deal. The post Doorway Home Loans to merge with Priority Mortgage appeared first on HousingWire. |
| You are subscribed to email updates from Mortgage Industry News Delivered Daily from 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