Hometown Lenders faces cease and desist, $1M in unpaid taxes

Hometown Lenders' financial wherewithal has once more come into question after documents revealed it hasn't paid taxes to the government and has stopped making pass-through payments on Federal Housing Administration loans in the state of Washington. As a result, the lender has been slapped with a cease and desist order from a Washington regulatory agency, temporarily barring Hometown from doing business in the state. The Internal Revenue Service has also issued a notice of a federal tax lien in the amount of almost $1 million,? according to a recent filing. The order shuttering Hometown's lending activity was issued by the Department of Institutions of the State of Washington on Oct. 17.

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Latest title company to settle no-poach case gets largest fine

First American Financial became the last of the big four title insurance underwriters to settle allegations over employment practices with the New York Attorney General's office. The office has conducted a multi-year investigation into agreements among both underwriters and agencies not to solicit each other's employees. Most underwriters also have direct relationships with clients that drive policy acquisition. As a result, they compete in the labor market, the Attorney General said. The $4.5 million fine represents the largest penalty agreed to by industry members that were alleged to participate in these no-poaching activities.

Pennymac reports correspondent gains due to bank proposal

While proposed capital rules for banks with assets of $100 billion or more have raised concerns for some nondepositories in terms of their potential impact on funding sources, they appear to have at least one upside for a large loan aggregator like Pennymac. Correspondent gains contributed to $93 million in earnings during the third quarter, up from $58.3 million in the second but down from $135.1 million a year earlier, executives said. The company added 29 sellers during the period, according to Chief Financial Officer Dan Perotti.

FHFA did not document reviews of desktop appraisals, inspector finds

The Federal Housing Finance Agency did not document its reviews of desktop appraisal reports, which makes it difficult to determine how the program is working, a report from its Office of the Inspector General said. On Oct. 18, 2021, the FHFA permanently allowed desktop appraisals for Fannie Mae and Freddie Mac. In these cases, a person doing the valuation need not physically be present on the property. Desktop appraisals are just one of five components for the FHFA's valuation modernization program, which also includes hybrid appraisals and appraisal waivers. The OIG findings cover reports submitted starting in October 2021 through March 31 this year.?

Rithm Capital hints at another acquisition

As other acquisitions are pending, Rithm Capital hinted at a new deal to come by year's end as it aims toward becoming an asset management leader. While media publicity as well as competing offers currently surround its efforts to purchase hedge fund firm Sculptor Capital Management, New York-based Rithm also agreed to buy servicing assets from Australian firm Computershare in the third quarter, a move more in line with its original roots in home lending. But a spree of recent deals also underscore a strategy shift, which could eventually help lead to a spinoff of its mortgage unit.? "In the asset management side, we're working on another — what I would call sizable — transformational transaction that we expect to get done by the end of the year," said CEO Michael Nierenberg in Rithm Capital's third quarter earnings call.?

Office loans are the snag in a strong quarter for New York Community

Net interest income at New York Community Bancorp proved to be a pleasant surprise in the third quarter, but the celebration was at least partly dampened by a hefty uptick in souring loans. On the plus side, net interest income totaled $882 million, topping analysts' expectations and contributing to a net interest margin of 3.27%. Less happily, nonperforming loans at the Hicksville, New York, parent of Flagstar Bank totaled $392 million, up 68% from the prior period. Executives blamed the credit deterioration on two office loans totaling $124 million — one on a building in New York City and another on a pair of office towers in Syracuse, New York — that were moved into "nonperforming loan" status.

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