Category Archives: Lending

Guild Mortgage promotes Gemma Currier to VP of national retail sales

Independent mortgage lender Guild Mortgage has promoted Gemma Currier to vice president of national retail sales operations.

Currier will oversee the company’s sales technology, sales training and development, retail administration and project management. In this expanded role, she will direct 25 employees, manage product guidance for sales technology, retail meeting and event programs, training and development initiatives, retail onboarding processes and special projects to improve retail operations.

Currier will also oversee the development of a new CRM, lead management and marketing automation platform to be integrated with Guild’s proprietary sales systems. Currier will report to Barry Horn, executive vice president of national production.

“Gemma is a driving force at Guild and helps us achieve our company goals, specifically in retail operations,” said Horn. “She has extensive mortgage experience and is an invaluable member of our team. She continues to improve retail operations in creative and innovative ways.”

Since joining Guild in 2008 to work in production training, Currier advanced to the national sales and marketing specialist role in January 2011 and just two years later, in 2013, became national sales marketing manager. In 2016, Currier was promoted to director of retail sales operations.





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CoreLogic: Mortgage lending becomes riskier in Q1

Mortgages became more risky in the first quarter of 2017, according to the Q1 2017 CoreLogic Housing Credit Index.

The index from CoreLogic, a property information, analytics and data-enabled solutions provider, measures trends in six home mortgage credit risk attributes. The HCI indicates the increase or decrease in credit risk for new home originations compared to the period before.

These six attributes include borrower credit score, debt-to-income ratio, loan-to-value ratio, investor-owned status, condo/co-op share and documentation.

Click to Enlarge


(Source: CoreLogic)

“Mortgage rates during the first quarter of 2017 were up about 0.5 percentage points from a year earlier,” CoreLogic Chief Economist Frank Nothaft said. “Since 2009, for every one-half percentage point increase in mortgage rates, the average credit score on refinance borrowers has dipped by nine points, and this pattern will likely continue if mortgage rates move higher.”

“That is because when rates rise, applications drop off and loan officers spend more time with the applicants that have less-than-perfect credit scores, require more documentation or have unique property issues,” Nothaft said.

During the first quarter, the HCI increased to 105.6, an increase of 3.6 points from the first quarter of 2016. However, even after the increase, the level of credit risk in the first quarter was nearly the same as the average 105.9 for the period of 2001 to 2003, a time which is considered to be a normal baseline for credit risk.

Over the past year, the index showed a loosening, partly due to a shift in the mix of purchase loans, which are more risky, versus refinance originations.

Beginning in Q1 2017, the HCI was revised to include a more comprehensive source of loan-level, non-agency, mortgage-backed securities data. The result is that the HCI more accurately captures the loans that exhibited higher risk features during the mid-2000s.

“Overall credit risk for purchase loans was slightly higher compared with a year ago as the investor share and condo/co-op share increased,” Nothaft said. “These increases offset lower-risk signals from the credit score, DTI and LTV attributes to result in an uptick in overall riskiness. Still, overall risk is similar to that of the early 2000s.”

Here are the changes to the six attributes:

Credit Score: The average credit score for homebuyers increased 7 points year over year between Q1 2016 and Q1 2017, rising from 734 to 741. In Q1 2017, the share of homebuyers with credit scores under 640 was less than 3% compared with 25% in 2001.

Debt-to-Income: Holding steady at 36%, the average DTI for homebuyers in Q1 2017 was similar to Q1 2016. In Q1 2017, the share of homebuyers with DTIs greater than or equal to 43% was 24%, down slightly from 25% in Q1 2016, but up from 18% in 2001.

Loan-to-Value: The LTV for homebuyers fell by 1.7 percentage points between Q1 2016 and Q1 2017 from 87.6% to 85.9%. In Q1 2017, the share of homebuyers with an LTV greater than or equal to 95% was 43%, down from 49% in Q1 2016 and up from 29% in 2001.

Investor Share: The investor share of home-purchase loans increased from 4% in Q1 2016 to 5% in Q1 2017.

Condo/Co-op Share: The share of home-purchase loans secured by a condominium or a co-op building increased from 10% in Q1 2016 to 12% in Q1 2017.

Documentation Type: Low- or no-documentation loans remained a small part of the mortgage market, increasing from 2% to 3% of home-purchase loans during the past year.

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Ellie Mae: Share of purchase originations hits 6-year high

A recent report from the Mortgage Bankers Association showed that the refinance share of mortgage applications fell to the lowest level since September 2008 during the month of May.

Now, a new report from Ellie Mae shows the results of the lack of refinance applications on mortgage originations.

According to the Origination Insight Report from Ellie Mae, which covers May, purchase mortgage originations in May made up a higher percentage of overall originations than in any month since Ellie Mae began tracking the data in 2011.

Ellie Mae’s report showed that purchase originations made up 68% of all closed loans in May, a 3% increase from April.

That share is a record high, according to Ellie Mae President and CEO Jonathan Corr.

“The start of the peak summer home buying period combined with fewer refinances due to higher interest rates, drove purchases to the largest percentage of total loans since we began tracking data in 2011,” Corr said.

Freddie Mac’s report on mortgage rates showed that rates hovered right around 4% during May, while Ellie Mae’s view on interest rates showed that interest rates on closed loans were even higher than that.

According to Ellie Mae’s report, the average interest rate on a 30-year mortgage actually decreased for the first time in 2017 in May, falling from 4.41% in April to 4.33% in May, but that’s still up from 4.06% during the same time period last year, and up from 3.81% six months ago.

Back in November, when interest rates were at 3.81%, the share of refinances was nearly 50% of all mortgages – 47% to be exact.

The dramatic shift can be seen in conventional mortgages specifically, as back in in November refinances made up 58% of the originations with purchases making up the remaining 42%.

In May, those figures were totally flipped, with refinances making up 39% of the originations and purchases making up 61%.

The news on refinances isn’t all bad though, as applications for refinances are on the rise, with the latest data showing that refinance share of mortgage activity increased from 45.4% of total applications last week to 46.6% this week.

Ellie Mae’s report also showed that the time to close a loan held steady at 42 days in May.

That’s more than a week faster than January’s average of 51 days. For a look at that trend over time, click here.

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