Industry analysts predict that the New York ruling will limit rep-and-warrant claims on vintage non-agency MBS as well as future claims on recently issued jumbo MBS.
According to figures compiled by Inside Mortgage Finance, Flagstar is the nation’s second largest wholesale/broker lender. It also has a fairly large presence in the warehouse market.
Some GSE watchers fear that new Federal Housing Finance Agency director Mel Watt might slow GSE risk sharing deals but those concerns may be unwarranted.
The tapering of the Federal Reserve’s quantitative easing beginning this month will do little to end the advantages agency MBS have over new jumbo MBS.
Western Bancorp said it will lend to borrowers with credit scores as low as 620 and the loans are available to non-owner-occupied properties and first-time homebuyers.
Through the first nine months of 2013, an estimated 22 percent of the $1.59 trillion in mortgages originated (including second liens) had non-agency execution.