HousingWire, Nov. 6, 2018–Ben LaneEarlier this year, Wells Fargo revealed that a software error in its mortgage underwriting system led to hundreds of unnecessary foreclosures, but now it appears the problem is even bigger than the troubled bank first thought.
Category: Top National News
Private-Label RMBS on Track to Surge Again in 2019: Bank of America
National Mortgage News, Nov. 5, 2018–Bonnie Sinnock (subscription)Although forecasts anticipate a continuing drop in overall originations, private-label residential mortgage-backed securitizations backed by newer loans are expected to keep increasing through next year, according to Bank of America.
Reverse Mortgage Market Closes Out October with Positive Gains
HousingWire, Nov. 5, 2018–Jessica GuerinRMI President John Lunde said the numbers continue to point to a slow recovery for the HECM industry, which has seen volume nosedive this year thanks to program changes issued last October.
Lowe’s to Close Nearly 50 Stores
Wall Street Journal, Nov. 5, 2018–Sarah Nassauer (subscription)Lowe’s Cos. Inc. said it would close nearly 50 stores as a new CEO seeks to boost sales by shedding less-profitable locations and focus spending elsewhere.
Fannie Mae Reports Income of $4B in Third Quarter
HousingWire, Nov. 2, 2018–Alcynna LloydFannie Mae reported Friday it posted a comprehensive income of $4 billion in the third quarter, which was primarily driven by the company’s business fundamentals.
How Risk-Sharing Deals are Renewing the Fannie Mae, Freddie Mac Rivalry
National Mortgage News, Nov. 2, 2018–Bonnie Sinnock (subscription)The fierce competition between Fannie Mae and Freddie Mac has largely taken a backseat to the myriad reforms enacted over the 10 years the mortgage giants have been in federal conservatorship. But the unique approach each company is taking with their credit-risk transfer products is quickly becoming a key point of differentiation with long-term implications.
Goldman Sachs Chipping Away at $1.8B Mortgage Settlement Target
National Mortgage News, Nov. 2, 2018–Elina TarkazikisThe bank, working to fulfill mortgage settlement agreements between the U.S. Department of Justice and three states, forgave a total of $78.7 million in principal on 746 first-lien mortgages since its last update on Aug. 1, for average principal forgiveness of $105,467 per loan and total reportable credit of $79.3 million after appropriate crediting calculations and multipliers were applied.
Mortgage-Bond Carnage Shows What the Future Holds Without Fed Help
Bloomberg, Nov. 2, 2018–Christopher MaloneyThe bloodbath last month in the mortgage-bond market points to what the future may be like without Federal Reserve hand holding. Investors are now wondering if anyone will step in to stop the bleeding.
What’s Keeping Chief Risk Officers Up at Night
American Banker, Nov. 2, 2018–Kristin Broughton (subscription)The banking industry’s chief worriers have a lot to worry about these days. Whether it’s increased competition from nonbank lenders, the rise of e-commerce and its impact on traditional bank clients or the uncertainty created by the pending shift to a new benchmark lending rate, risk executives and board members at big banks see no shortage of threats to their industry.
New Toys ‘R’ Us Owners Mull Physical Stores
Crain’s Chicago Business, Nov. 2, 2018The hedge funds that now own the Toys “R” Us brand plan to relaunch the toy retailer as a standalone operation next year. They will look to raise capital to help revive the chain, which closed its last stores at the end of June, and are making plans that include brick-and-mortar locations.