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Nations Lending, Carpenter Realtors Launch Joint Venture

Nations Lending, Carpenter Realtors Launch Joint Venture
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Servicing, Digital, Customer Service Tools; Retail Lender News

What is $9,140? It was the production cost, per IMB loan for the 3rd quarter in 2021. (The Q4 2021 results are coming out on March 22.) I bring this up because, generally speaking, lenders are selling the loans they manufacture at roughly the same price, so profitability, and long-term success, will depend on lowering their manufacturing costs. Costs “may” very well set a record-high in Q4 2021. As is, for Q3 2021 we were at the second highest levels, right behind the 1st quarter of 2019 when volume was much lower than Q3 2021. (Questions about the MBA Quarterly Performance Report, including what is in the numbers, should be directed to Marina Walsh, VP, Industry Analysis, Research, and Economics with the MBA.) Residential volume is impacted by interest rates, which in the short-term have been driven down by Russia attacking Ukraine, but in the long term influenced by economic trends… Are we heading toward a market with ramped-up adjustable-rate mortgage volume? Pe ....

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FHA, VA News Impacting Lenders; Vendor Tools

Hundreds of billions of servicing are being bought & sold out there. With Freddie & Fannie servicing trading at 5:1 (mid 3’s for Ginnie servicing), given current rates versus where servicing portfolios are, servicers are tapping into this source of capital instead of letting it sit on their balance sheet. Think of it as a savings account for a lender that retains servicing: with revenues dipping, the cash from a servicing sale can come in handy. Meanwhile, lenders and loan originators are being asked, “Are you trying to win, or just trying not to lose?” Investors and lenders are sharpening their pricing pencils for purchases at the expense of refis. Webinars abound about how MLOs, and their parent lender, should go after the purchase business. It’ll be a dog fight out there, at least for new home business, much of which goes to builder’s lenders. Recently we learned that mortgage applications for new-home purchases in Decem ....

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