Increased competition in the non-qualified mortgage market could reduce interest rates paid by borrowers and slow the sector’s speedy prepayment rates, said S&P Global Ratings. Non-QM loans, the fastest growing segment of the residential MBS market, repay quickly, often within one year of origination. S&P noted the conditional prepayment rate of non-QM loans is about 35 percent, while the rate for non-agency prime jumbos ranges from 5 percent to 15 percent. “The predominant reason to ...
Ongoing challenges in the retail sector are raising questions about the credit implications for some structured finance collateral, though the negative effects on the commercial MBS market appear to be limited due to a strong economy, according to a report by Moody’s Investors Service. The disruption in the U.S. retail sector has been caused by the growth of online shopping, cutthroat competition, over-expansion and inability to adapt to changing consumer demands, the report indicated ...
Harassment complaints filed against Federal Housing Finance Agency Director Mel Watt took center stage during a House Financial Services Committee hearing late this week in which his accuser testified that the agency, along with its inspector general, treated her unfairly. Simone Grimes began her career at the FHFA in 2010 and became a special advisor in 2015. She complained that she was not given the same benefits as her predecessor in this temporary role and was advised that Watt would ...
“I think everyone is on board,” said Colgate Selden, a former CFPB attorney and now managing director and head of regulation and compliance at Promontory MortgagePath.
Lawmakers who scheduled a hearing about a month ago to discuss oversight of the Federal Housing Finance Agency instead found themselves questioning FHFA Director Mel Watt about sexual harassment claims by one of his employees. During the day-long House Financial Services Committee hearing, which included his accuser Simone Grimes, FHFA Inspector General Laura Wertheimer, and the GSE CEOs, Watt fought back against the allegations. He painted his relationship with Grimes as a mentor/mentee-type interaction and questioned the committee’s decision to even allow Grimes to use that forum when she has a lawsuit pending. But Rep. Maxine Waters, D-CA, who admitted to having a close friendship with Watt, said, “It’s a new...
Commercial banks and savings institutions valued their mortgage-servicing rights at historically high levels at the end of the second quarter, even as industry leaders continued to pull back from the sector. A new Inside Mortgage Trends analysis of call-report data reveals that the industry serviced $3.563 trillion of single-family mortgages for other investors, usually loans held in mortgage-backed securities trusts. The industry total servicing for others was down ... [Includes one data chart]
After much anticipation from the mortgage insurance industry, Fannie Mae and Freddie Mac released their updated requirements that private MIs must meet to be eligible to provide mortgage insurance on GSE loans. This is the first time the requirements have been revised since being introduced in 2015.Dubbed PMIERs 2.0, the new private mortgage insurance eligibility requirements will go into effect in March 2019. They serve as a way for Fannie and Freddie to better manage counterparty risks by detailing financial and operational eligibility requirements that private mortgage insurers need to meet, especially as PMIs play a large role in high loan-to-value lending.
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