The Consumer Financial Protection Bureau late this week issued two final rules for qualified mortgages: One replaces the 43% debt-to-income ratio with a pricing threshold and the other creates a seasoned QM category.
The correspondent channel accounted for 5.7% of jumbo originations among a group of major lenders tracked by this newsletter, down from 10.5% in 2Q20. The retail channel gained all of that market share. (Includes data chart.)
With GSE conforming loan limits increasing by 7.4% in 2021, jumbo lenders could miss out on billions of dollars in originations. But there are some opportunities in areas where home prices are rising quickly.
Lenders tightened underwriting standards on non-agency mortgages in March and April, opting to focus on agency refis. But when that business declines, non-agency lending could rebound.
Loans in forbearance decline; non-QM impairment rate falls; non-agency trading booming at Maxex; fix-and-flip lender on track for $1 billion in production; former Ocwen CFO now leading LendingHome.
In the twilight of the Trump administration, the FHFA is taking steps that could make the non-agency market more competitive with the GSEs. A Democrat in the White House could mean otherwise.
Velocity resumed lending in September, predicting that production could hit pre-pandemic levels by the second quarter of 2021. The nonbank also took a large charge-off in the third quarter.
RSS