Redwood’s mortgage banking income decreased in the third quarter as falling interest rates lessened demand for MBS. Execution rebounded in October after interest rates increased.
Moody’s assesses Quicken as an “average” originator of prime jumbos; Prosper ties up with BBVA USA to launch a HELOC product; Deephaven hires Kris-Ann Carduff as a vice president.
JPMorgan Chase Bank has created a synthetic credit-linked note to transfer credit risk on a pool of jumbo mortgages. Unlike traditional MBS, loans in the transaction will remain on the bank’s balance sheet.
Issuance of non-agency MBS slowed near the end of the third quarter but presale reports for a number of deals have been published this month and more securities are on the way.
The CFPB is considering whether to provide QM status to mortgages that didn’t miss payments in the early years after origination. The proposal has support from some lenders.
There’s no consensus among industry participants on how the CFPB should address the “patch” for qualified mortgages. However, lenders generally agree that Appendix Q of the ATR rule needs a major overhaul.
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