Among the report’s conclusions: Small servicers tend to focus on mortgages in non-metro or rural areas. Also, small servicers are less likely than larger shops to process loans backed by Fannie Mae and Freddie Mac.
Charlie Clark, president of the American Association of Residential Mortgage Regulators, stressed the need to establish prudential standards for nonbank lenders and servicers.
It’s no secret that home lenders are enjoying boom times. According to figures published by Inside Mortgage Finance last month, mortgage bankers funded a mouth-watering $700 billion in first-liens in the quarter, the strongest showing of the year.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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