Report Increased Regulation to Boost Profitability in Coming Years

first_img Agents & Brokers Attorneys & Title Companies Bank of America Citigroup Dodd-Frank Investors JPMorgan Chase Lenders & Servicers Processing Profits QRM Regulation Service Providers Wells Fargo 2012-11-26 Tory Barringer Standardization and market stability brought on by increased regulation will pave the way for a bright future for mortgage banking and related industries, “”FBR Capital Markets””:http://www.fbr.com/ speculates in a recent report.[IMAGE]The report, titled _Future of the Housing & Mortgage Markets: Winners & Losers,_ examines the impact of heightened scrutiny and changing markets to determine where the industries will head in the next five years.According to the forecast, FBR believes that “”companies directly involved in mortgage banking or housing, or involved in a derivative of the two, such as homebuilders, housing rental companies, mortgage/title insurance, and reverse mortgages, should enjoy strong profitability, less volatility, and better valuations relative to historical expectations.”” At the same time, portfolio lenders and private-label securitizers “”will be at a strategic disadvantage.””While many mortgage professionals have been expressing anxiety about certain aspects of proposed regulations, FBR points to the end result: a more stable market with higher underwriting standards and lower risk from “”exotic”” mortgage products such as low/no-doc loans and prepayment penalties. “”The capacity constraints created by increased barriers to entry and regulatory oversight, coupled with the standardization of the mortgage product and the [COLUMN_BREAK]continued dominance of the government guarantee, should produce a more stable and consistently profitable mortgage origination market,”” the report reads.Although the mortgage industry as a whole is expected to benefit from the increased regulatory oversight, some proposed regulations–particularly those related to qualified residential mortgage (QRM) rules–are expected to give preference to loans securitized by Fannie Mae and Freddie Mac. These risk retention requirements may stifle any private securitization activity and potentially keep out new entrants who could otherwise bring down underwriting standards.In addition, with larger banks like “”Citigroup””:http://www.citigroup.com/citi/, “”JPMorgan Chase””:http://www.jpmorganchase.com/, and “”Bank of America””:https://www.bankofamerica.com/ scaling back their lending operations (leaving behind an estimated $1.3 trillion in annual origination capacity), “”the opportunity set for smaller players in the origination and refinancing market has increased.”” While “”Wells Fargo””:https://www.wellsfargo.com/ continues to dominate the market, FBR notes the biggest lender’s originations are flat relative to pre-crisis levels. As a result, about 60 percent of the market will still be driven by smaller players.””We believe the largest opportunities in mortgage originations are with a smaller, mortgage-concentrated model,”” the report says. “”This model will allow lenders to have the appropriate local knowledge to understand their market risk while maintaining the necessary regulatory quality controls.””At the same time, originations are expected to continue growing as a demographic shift supports a healthier purchase market. With the average homebuying age at 34, the market is squarely in the hands of the large “”echo boom”” generation, or the children of the baby boomers. This phenomenon will lead to a boom in construction (with an estimated 1.3 million to 1.7 million additional housing units expected to be demanded in the next several years) and home purchases.As a result, the recovering purchase mortgage market could expand to exceed $1 trillion, creating a net for the industry as refinance volume falls. In total, FBR anticipates overall originations between $1.5 trillion and $2.0 trillion over the next five years. in Data, Government, Origination, Secondary Market, Servicing November 26, 2012 432 Views center_img Report: Increased Regulation to Boost Profitability in Coming Years Sharelast_img read more

There may never be another football team anthem as

first_imgThere may never be another football team anthem as famous (or as cheesy) as the Chicago Bears’ “Super Bowl Shuffle” that was released in 1985.That song actually peaked at No. 41 on the Billboard Hot 100 chart that year, and the Bears went on to win their one and only Super Bowl title that season.The enthusiasm for the Arizona Cardinals is at an all-time high in the Valley, and that’s why Jason Devore, the lead singer of Authority Zero, did something about it — and it’s a million times cooler than what the Bears put together 31 years ago. Top Stories Comments   Share   The 5: Takeaways from the Coyotes’ introduction of Alex Meruelo Devore is working on a new solo project with producer Derek Seidensticker and took out some time to write and record “Birdgang Battle Cry”.Here’s Devore’s explanation for the :41 clip, as explained on YouTube:So plain and simple I wrote and recorded a Cardinals “Fight Song”. A song to bring everyone together to electrify, fire up, unify, and inspire both the fans and the team they’re rooting for…the home town/State Arizona Cardinals. Growing up a local playing music , I feel it important that every city, state, and community should have something to be proud of and belt that brings them together as one voice. So, with the help of my good friend Derick Seidensticker I was able to record and present it to the Cards themselves so we’ll see where it may lead, but for now I present it to you. Call me crazy, but I hope you enjoy it. If you do and can get behind it please like it, share it, play it a few times over and again, and sing it loud! Hopeful it will stick and soar, but if for anything else, it was a lot of fun to do. Big thanks to my friend Jason Passaro for putting together the video and rally on friends! #birdgangbattlecryThe song was released on YouTube on Jan. 15, and has over 21,000 views. Derrick Hall satisfied with D-backs’ buying and selling Former Cardinals kicker Phil Dawson retires The Cardinals play the Carolina Panthers Sunday in Charlotte for the NFC Championship. The game can be heard on Arizona Sports 98.7 FM — kickoff is at 4:40 p.m. and special pregame coverage begins at 9:00 a.m. Grace expects Greinke trade to have emotional impactlast_img read more