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Warehouse Lending Rises as More Banks Step In
American Banker (06/22/10) P. 9; Muolo, Paul; Finkelstein, Brad
The warehouse sector is attracting more banks, and National Mortgage News reports a 20 percent jump in warehouse commitment volumes to $31 billion during the year-over-year period ended in March. While more community banks are drawn to the sector for its robust profit margins, experts say warehouse credit likely will decline along with overall origination volume in the primary mortgage market.
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Foreclosure Plan Shows Slippage
Washington Post (06/22/10) P. A13; Merle, Renae
About 340,000 homeowners have received a permanent loan modification that lowers their monthly payment for five years under the Making Home Affordable program launched last year, estimates the Treasury Department. However, some 436,000 homeowners have been dropped from the program. About half of homeowners pulled from the initiative are receiving another type of workout from their banks, but housing counselors say the alternatives are less generous than the federal program.
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Thorny Issues Remain as Congress Negotiates Financial Regulatory Overhaul
Washington Post (06/22/10) P. A12; Dennis, Brady; ElBoghdady, Dina
With regard to financial regulatory overhaul, some of the most divisive issues remain unresolved as Democratic leaders work to reconcile their own differences on key points while also battling GOP objections. Two of the most significant elements of the bill that have yet to be determined involve how to implement risk retention rules on lenders and how to set up a new consumer watchdog tasked with protecting borrowers against lending abuses.
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New TransUnion Study Quantifies the Benefit of Consumer-Lender Loyalty
Marketwire (06/22/10)
A TransUnion study finds that consumers with multiple account relationships with the same lender outperform consumers who maintain only one relationship with that lender. The survey analyzed the correlation between the number of consumer accounts that were 30 days or more delinquent and the number of accounts a borrower held with the target lender. Almost always, delinquency levels on first mortgages, home equity lines of credit, credit cards and auto loans decreased significantly as the total number of relationships the borrower had with a lender increased.
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Licensing, Industry's Rep Hamper Hiring
National Mortgage News (06/21/10) Vol. 34, No. 38, P. 10; Lepro, Sara
As the industry contracts, recruitment has become a problem for mortgage lenders. Employment in the sector has fallen from more than 500,000 in February 2006 to about 248,000 in April, reports the Labor Department, but lenders now are looking to glean market share from players that have exited the business. Lenders say experienced loan officers worry about switching jobs and new college graduates are avoiding the industry, while nonbank lenders also must comply with licensing and registration requirements of the Secure and Fair Enforcement Licensing Act.
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