Compare ratios have been criticized by some factions of the mortgage industry. Some lenders have complained that the ratio is one reason why originators do not target underserved markets.
In a wide-ranging speech – and in supporting documents – Mel Watt also vowed that the GSEs will continue to permit “compensating factors” when weighing a decision to guarantee mortgages where the debt-to-income ratio is north of 43 percent.
On the M&A front, a new report from Compass Point Research & Trading estimates that if PHH Corp. finds a way to sell its mortgage and fleet divisions, the stock should be worth $30 a share.
Nationstar made “right-party” contact with delinquent borrowers to determine their eligibility for HAMP in only 65 percent of such cases from March 2013 through February, the government found.
All lenders authorized to process VA loans automatically are required to maintain a QC plan and execute it in the course of originating government backed mortgages.