The CFPB’s proposal could drastically reduce the number of non-QMs originated while helping the non-agency market compete with the GSEs. Industry groups and consumer advocates endorse the tradeoff.
Industry groups warn that most ARMs that reset within five years of origination won’t qualify for safe-harbor status under the CFPB’s qualified-mortgage proposal.
IO lending among a group of 15 prominent lenders increased by 35.3% in the second quarter. Banks accounted for nearly all of the increase. (Includes data chart.)
A new analysis of HMDA data provides some insight on borrowers who received jumbo mortgages last year. The median property value securing jumbos originated: A cool $1.17 million.
A proposal by the FHFA regarding capital requirements could help non-agency execution options better compete with the GSEs due to an expected increase to the guarantee fees charged by Fannie and Freddie.
Thousands of non-qualified mortgages could receive safe-harbor status three years after origination under a new “seasoning” provision proposed by the CFPB.