Publicly traded REITs like Redwood Trust would fill the void if Fannie Mae and Freddie Mac lower loan limits next year. But they will be competing against portfolio lenders.
It appears the House of Representatives is giving up on GSE reform this year. However, the Senate could move forward, even though passage is considered a long shot, at best.
Nonbanks are stepping up to the plate on agency MBS. Meanwhile, a handful of large "term" loans are being put together, allowing investors to finance MSRs.
Federal regulators issued a revised credit risk retention/qualified residential mortgage proposed rule late last month, one that tilts heavily in the direction of the qualified mortgage provisions established in the CFPBs ability-to-repay rule and that close proximity concerns the bureaus director, Richard Cordray. The proposal released Aug. 28 we see as another key step in obtaining further certainty for the mortgage market going forward, said Cordray, who as one of the four members of the Federal Deposit...
With multiple mortgage rulemaking implementation dates just a few months away, and the industry clamoring for a formal delay or an informal enforcement holiday from the CFPB, the bureau is considering hosting a few webinars to provide guidance for at least some of the rulemakings, most notably the new mortgage servicing rules, one industry source confided. The Department of Housing and Urban Development did something similar with its 2010 Real Estate Settlement Procedures Act final rule, the source continued. That...
Some folks in the mortgage broker community have been suggesting that operating as a mini-correspondent will help brokers avoid points-and-fees complications with the qualified mortgage definition under the CFPBs ability-to-repay final rule. As it stands now under the CFPBs rule, lender- paid compensation will have to be counted in the 3 percent compensation limitation for qualified mortgages. The broker segment continues to mull over the final final rule from the CFPB regarding compensation, said mortgage broker Rob Chrisman in...
Mortgage lenders and servicers are increasingly worried about a number of aspects of the CFPBs mortgage servicing rules that were issued earlier this year, including some that could interfere with various state laws. The fear is that will cause unnecessary litigation, conflicting judicial decisions and prolonged uncertainty for the industry. One of the bureaus new regulations will require mortgage servicers to provide an opportunity to seek loss mitigation before foreclosure initiation is permitted, with a private right of...
The Mortgage Bankers Association recently warned the CFPB that a move by the Federal Housing Finance Agency to lower loan limits for the government-sponsored enterprises could negatively affect qualified mortgage status and borrower access to credit. Given that we are in the early, fragile stages of a housing recovery, we urge the bureau to consider additional refinements to the QM requirements to mitigate the combined impact of the rule and the FHFAs action on loan limits, the MBA said. The trade group noted that the QM rule...