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 CFPB’s ability-to-repay rule – and that close proximity concerns the bureau’s 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 CFPB’s ability-to-repay final rule. As it stands now under the CFPB’s 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 CFPB’s 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 bureau’s 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 FHFA’s action on loan limits,” the MBA said. The trade group noted that the QM rule...

The firm’s deal will be financed with bonds that are expected to have a five-year maturity, a floating-rate coupon and a rating from a major rating service.

New issuance of agency single-family MBS fell in August to its lowest monthly total of the year, according to a new market analysis and ranking by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae generated a total of $130.88 billion of new single-family MBS last month, down 9.3 percent from July. It was the lowest monthly production volume since December 2012. New issuance by the government-sponsored enterprises fluctuated sharply at that time as lenders jockeyed around rising guaranty fees and the implementation of more favorable reps and warranties policies. All three agencies saw...[Includes one data chart]

If the Federal Housing Finance Agency lowers loan limits for Fannie Mae and Freddie Mac next year, Redwood Trust says it is ready, willing and able to pick up the slack. “If that happens, Redwood will step up and fund those loans, no problem,” said Mike McMahon, managing director of the real estate investment trust, the most active jumbo MBS issuer in the non-agency market. The executive told Inside MBS & ABS that he’s certain that Redwood would have plenty of company as well. “There will be little or no disruption in the market,” he said. According to McMahon, in 2012 lenders produced...

The GSEs continued to see solid increases in purchase-mortgage business, which increased by almost 7 percent from July to August. It was the fifth straight monthly gain for the two.