The regulatory relief bill recently passed by the Senate would reduce uncertainty for future ABS tied to Property Assessed Clean Energy financing programs, rating services said.
Housing-finance reform appears to be in the process of a slow death for 2018 partly because of the pending departure of key players, according to Bank of America Merrill Lynch analysts.
Fitch Ratings recently proposed changes to its loss model criteria for non-agency MBS involving servicer quality and the performance of re-performing loans.
Angel Oak Capital Advisors recently issued its first MBS backed by fix-and-flip loans. The firm plans regular issuance of such deals, which could receive credit ratings once the rating services develop criteria for them.
DBRS took over as the top rating service in the non-agency MBS market last year, as more deals carried multiple ratings in 2017, according to a new Inside MBS & ABS ranking.
Fannie Mae adjusted its automated underwriting services last summer to make more loans with higher debt-to-income ratios eligible for approval without lenders needing to provide compensating factors.
Housing and Urban Development Secretary Ben Carson told Congress it would cost approximately $500 million upfront to convert FHA’s archaic information technology systems to a modern technology platform.
Consumers who take part in homebuyer education and counseling classes are more satisfied with the mortgage process, according to a joint report by the Consumer Financial Protection Bureau and Federal Housing Finance Agency. The classes also help spur homebuyers to better examine mortgage loan offers.