Secondary Market

Solvency issues re-emerged for the Federal Housing Administration in a hearing convened Tuesday by the Senate Banking Committee, with HUD Secretary Shaun Donovan calling for lower loan-to-value thresholds and more servicer competition to expand refinance opportunities. The hearing follows a bill by Sens. Barbara Boxer and Robert Menendez to roll back refinancing barriers for homeowners with GSE-held mortgages and featured the legislation as lawmakers discussed solutions to the housing crisis. The hearing quickly turned to servicer competition.

PHH Mortgage Corp. revealed Monday that it will supply private-label mortgage origination services to HSBC Bank, an agreement that brought approval from market experts. The Mt. Laurel, New Jersey-based financial institution and subsidiary of PHH Corp. said that it would subservice HSBC's $15.5 billion prime mortgage loan portfolio, along with $36.6 billion of loans serviced by the bank for third-party investors. PHH said that it expected 400 HSBC employees would transfer from its Depew, New York-based facilities to operations elsewhere in the area.

The U.S. housing market continues to trudge down the slow, bumpy road to recovery with a few positive indicators lighting the way. However, a full recovery continues to linger listlessly on the horizon. Obama's Housing Scorecard for April, released jointly by HUD and the Treasury Department, reveals some positive movement in home sales, though prices continue to languish in many markets. Another piece of good news for the market: Housing inventory is now at a sustainable level. The market currently holds a 5.3-month supply of new homes.

House Republicans recently called on the Consumer Financial Protection Bureau to release financial plans and performance targets for the next year. In a letter obtained by MReport, Reps. Michael Fitzpatrick, Randy Neugebauer, and James Renacci slammed the agency by calling it unresponsive to their requests for budget details. The House members frequently made mention of the national debt, tying perceptions of government excess and waste to their demands for congressional oversight of the bureau. The Fed-funded bureau remains at the center of a political storm.

The Mortgage Bankers Association released a report Friday that ranked mortgage giant Wells Fargo last year's top commercial and multifamily mortgage originator. The trade group offered a set of comprehensive listings responsible for tracking originations by different investor groups. Wells Fargo snagged mentions in several listings, including those for commercial banks, savings institutions, Fannie Mae, Ginnie Mae, the Federal Housing Administration, Real Estate Investment Trusts, and other investors.

Mortgage giant Freddie Mac saw $577 in net income over the first quarter, less than $619 million for the same by the fourth quarter last year. The GSE said that its net worth deficit would require a Treasury draw of $19 million, adding that it offset comprehensive income over the first quarter by senior preferred dividends worth $1.81 billion. The company laid claim to more than $114 billion of liquidity in the mortgage market over the first quarter, including $89 billion single-family refinance loans that resulted in an estimated $1.4 billion in aggregate annual interest savings.

The nation added 115,000 jobs in April, far below expectations and a drop from March├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós revised payroll growth of 154,000, the Bureau of Labor Statistics reported Friday. The closely watched unemployment rate dipped again to 8.1 percent ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô its lowest level since January 2009 (7.8 percent) when President Obama took office ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a function of a sharp drop in the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós labor force. Payroll gains for February and March were revised, adding 19,000 to the February numbers and 34,000 to March. The average workweek remained at 34.5 hours.

In Dallas, Texas, First Preston HT has appointed a new president and CEO. The company's chairman, Nancy Tartaglino Richards, recently announced the promotion of First Preston HT veteran Lisa Barrentine to the leadership role.

Bank of Colorado recently reported an estimated 25 percent uptick in loan production during the past 24-months, and the company's technology provider, Mortgagebot, is taking partial credit for the significant increase. Citing the bank's use of MortgageboT's PowerSite platform, the tech company says that its integrated point-of-sale solution helped the financial institution capitalize on current market conditions. Mortgagebot noted that the departure of several larger lenders in Bank of Colorado's geographical region created opportunities to increase market share.

Concerns about the economy, European debt, and Chinese growth led mortgage rates to fall for the fourth straight week, according to Bankrate.com. The finance Web site found the 30-year fixed-rate mortgage averaging 4.05 percent, down from 4.09 percent last week, according to Bankrate.com's weekly survey. Bankrate.com also said that the 15-year loan set a new record low by falling to 3.25 percent, down from 3.28 percent, while 5-year and 1-year adjustable-rate mortgages each fell from 3.03 percent to 3.02 percent.