Mortgages and Housing: Warehouse Lending, Litigation Costs, RWT Sees $1 Bln, Fannie’s Loss, Delevering continues, Housing Up

May 9th, 2011 · No Comments


Tables Turn in Warehouse: Credit Standards Fall - By Brad Finkelstein - Improved liquidity in the warehouse lending market is leading to price competition and reductions in credit standards, according to panelists speaking at an industry conference in New York this week. Jack Nunnery, senior vice president at Texas Capital Bank, said that many new players have entered the market over the past year, and with projected origination volumes of under $1 trillion for 2011, available capacity far exceeds needs. - National Mortgage News


Wells Fargo Boosts Excess Legal Costs to $1.7 Billion on Mortgage Probes - By Donal Griffin - Wells Fargo & Co. (WFC), the nation’s biggest home lender, raised its estimate of potential excess legal expenses by 42 percent to a maximum of $1.7 billion as the bank prepares for new costs tied to its mortgage practices. – Bloomberg


Big banks spend billions on litigation costs - by JON PRIOR - ... Bank of  America reported $940 million in litigation costs during the first quarter, which increased from $588 million one year ago but dipped from $1.5 billion in the previous period. ... JPMorgan Chase reported $1.1 billion in litigation expense during the first quarter, actually down from $2.9 billion one year ago. ... more - Housingwire

Redwood Trust plans nearly $1 billion in private RMBS deals - by KERRI PANCHUK - Redwood Trust, the only firm currently issuing private-label residential mortgage-backed securities, said it hopes to close three RMBS deals this year. One of those deals is complete, with the next deal expected in the third quarter. - Housingwire

Fannie Mae Posts Deep Loss - By Michael Baron - ... The government-sponsored mortgage lender said it lost $8.7 billion, or $1.52 a share, in the three months ended in March, narrower than its massive year-ago loss of $13.1 billion, or $2.29 a share, in the same period a year earlier. ... -


Fannie Mae Posts $8.7 Billion Loss, Requests More Fed Aid - (AP) Huffpost Business


(delevering continues?) Cash-Out Refis Dry Up. Lack of Equity and Tight Credit to Blame - BY JANN SWANSON - ... During the first quarter of 2011, only 25 percent of those who refinanced existing mortgages pulled cash out of their home.  Even more striking, 21 percent took our smaller loans than the ones they were refinancing.  The percentage of homeowners whose loan balance remained unchanged, 54 percent, was the highest since Freddie Mac began keeping track of such figures in 1985.  Freddie Mac defines a "cash-out" mortgage as one in which the new principal balance exceeds the old one by more than 5 percent. ... (more) - Mortgage News Daily

National Housing Report: Prices And Inventory Both Up - by JON STIRLING - The headlines were reporting a “double-dip” in the lagging real estate data this week, but April brought some good news for the active housing market.  Both prices and inventory continued their upward trajectory, causing some cautious optimism from the real estate community. History tells us the seasonal uptick is expected this time of year ... - Altos Research

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