LoanDepot has cut its funding capacity by $1 billion
National Mortgage News
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The lender and servicer, in a Securities and Exchange Commission filing last week, cited current and projected mortgage loan originations as reason for a $500 million reduction. It announced a similar move to reduce funding by $500 million in August. To make the cuts, the Foothill Ranch, California-based firm said it would prepay securitization facilities and terminate other agreements. LoanDepot didn't have any outstanding borrowings under the facility and did not have to pay termination fees, according to the disclosure.?
Endorsements of home-equity conversion mortgages fell to a two-and-a-half year low in September, as lenders cautiously eye competing home-equity products, such as HELOCs, Reverse Market Insight found. Total endorsement volumes dropped 43.5% to 3,235 from 5,727 in August, with numbers in all U.S. geographic regions trending downwards. Endorsements also fell on a monthly basis at each of the ten top HECM lenders. The last time numbers came in lower was in April 2020, during the early stages of the coronavirus pandemic, when the volume plummeted to 1,601.
Reduced homebuyer enthusiasm weighed on home prices for the fourth consecutive month, with August home price growth slowing to 13.5%, a report by CoreLogic said. That's the lowest year-over-year appreciation recorded by the data vendor since April 2021. And home price gains are expected to dip even lower, dropping to an estimated 3.2% by August 2023, the company forecasted. Meanwhile a separate report from Redfin indicates that rising mortgage rates have cut at least 100 square feet out of the homes in would-be buyers' price range in 29 of the 50 metros.
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Ginnie Mae on Monday gave its securitization issuers expanded authority to buy out loans from securitized pools affected by Hurricanes Ian and Fiona even if the mortgages involved don't meet the normal rules for doing so. The expanded buyout authority for loans affected by these disasters may help pave the way for borrower relief measures like forbearance, waivers of late fees, foreclosure bans and modifications. Issuers must obtain written permission from Ginnie for the expanded buyouts and must also comply with the rules of other agencies that insure or guarantee mortgages at the loan level in addition to those of the government bond insurer. The expanded authority is temporary and expires March 31, 2023.
As the outlook for the mortgage industry turns increasingly negative, the search for partnerships — taking the form of integrations, mergers or the creation of interfaces — will pick up in intensity. In this story, we rounded up partnership activity in the mortgage industry since mid-August.
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