If capital and liquidity requirements for nonbank servicers are too stringent, firms could leave the business and borrowers’ costs for mortgages could increase.
While many lenders are already originating mortgages using replacements for LIBOR, many legacy ARMs remain linked to the London benchmark, according to an analysis by Inside Mortgage Finance.
The flexibility and innovation shown by mortgage lenders during the pandemic should be incorporated into everyday practices, according to panelists at the Mortgage Bankers Association’s annual convention.
Many lenders have increased their GSE loan limits nearly three months before new official limits come into play. Originating the loans, though, between now and the end of the year isn’t going to be as simple as lenders think.