Product Details
An Inside Mortgage Finance Webinar Held
Thursday, May 5, 2011
Federal regulators have proposed major changes in the risk lenders must retain when they sell mortgages in the secondary market. They have also carved out an exemption for so-called Qualified Residential Mortgages that meet strict – and very conservative – underwriting standards. Find out how the new proposal could dramatically alter the mortgage lending landscape for years to come. Hear an expert panel dissect the very controversial QRM/QM plan while pointing out both the pitfalls and opportunities that may lie ahead. Among the biggest changes being proposed for the new gold standard for residential mortgages are a 20 percent downpayment and a 28 percent debt-to-income requirement. Regulators contend the tough standards are necessary to avoid future problems with mortgages that may be carved up into securities and sold to investors around the world. Critics counter the changes will greatly limit the choices and availability of mortgages. Learn about how the new proposal could impact just about everyone in the mortgage business, from mortgage insurance companies and lenders to security issuers and underwriters. Discover how servicing practices would be regulated under the new proposal and how the rules could change the economics of the mortgage industry.
These Legal Experts Shared Their Insights and Answered Questions:
- Laurence E. Platt, Practice Area Leader, K&L Gates LLP
- Stephen S. Kudenholdt, Partner, SNR Denton US LLP
- Anne C. Canfield, President, Canfield & Associates, Inc.
- Guy D. Cecala, Publisher, Inside Mortgage Finance will moderate
How Does This All Fit Together?
- How will lenders do business under QRM and QM rules?
- Can lenders still charge prepayment penalties or allow balloon payments?
- Why do some think that lenders may be driven to outsource underwriting?
- Why is Truth in Lending Act liability much larger due to safe harbor standards?
- What is the role of private mortgage insurance under this proposal?
- What are the servicing requirements mandated on QRM loans, and are they legal?
- What are the rules for a QRM issuer if it wants originators to share in the risk?
- Why will non-QRM originations be less viable for traditional wholesale and conduit channels?
- How expensive will the “premium capture” reserve fund be for issuers and what effect will it have on the market?
- Review of the five separate potential structures for risk retention applicable to all ABS transactions.
- How will the five percent minimum risk retention affect liquidity and pricing?
- What are the potential consequences of violating the “ability to prepay” qualifier?
- Can there ever be a new innovation in mortgage products and features under this rule?