Bank of the West executive Paul Wible said the lender believes, "A well-underwritten, interest-only mortgage can be a good choice for our customers" and are safe for the depository to hold in portfolio.
Rep. Shelly Moore Capito, R-WV, said many credit unions and community banks “feel that they’re not going to be able to have the flexibility to give the farmer, the medical student, the single mother, the ability to get the home because they’re not going to fit into the QM box.”
Besides Freddie Mac and FHA, the three other main competitors for Fannie in the multifamily sector are life insurance companies, banks and conduit lending programs.
The integration of TILA and RESPA has "been a goal almost since the time the two statutes were issued, and certainly from the time the good-faith estimate began focusing on loan terms,” said Benjamin Olson of BuckleySandler.
In terms of market effect, a DocuTech executive said that because of the new CFPB rules, "credit is going to slow down for a little while, maybe a month or so."
Specifically, the CFPB is seeking comment on what consumers find most problematic about the closing process, including errors and changes at the closing table and the involvement of third-parties.
Mortgage lenders large and small have indicated they plan to stay away from making mortgages that do not fit into either the “safe harbor” or the “rebuttable presumption” QM boxes.
It may be time for the mortgage industry to take a chill-pill: applications are on the rise again, rates have stabilized and some firms are actually hiring loan officers.
The MBA suggested the CFPB increase the "rebuttable presumption" threshold from 150 basis points above the average prime offer rate to 250 basis points so more borrowers with less-than-perfect credit can benefit.