This source continued: “If only Castro had put the MIP cut through right after the actuarial report came out, we probably wouldn’t be talking about this right now.”
The CFPB Office of Inspector General recently initiated an evaluation of the bureau’s use of vendors to support its analysis of fair lending compliance, the OIG indicated in its latest work plan. The OIG begins by noting, among other responsibilities, the CFPB is charged with providing oversight and enforcement of federal laws intended to ensure the fair, equitable and nondiscriminatory access to credit. But what may surprise many in the industry is to learn that the agency relies on external vendors to help fulfill this responsibility. “Our objective is to assess whether the CFPB effectively mitigates the risk associated with the use of vendors to support fair lending analysis, particularly with respect to potential conflicts of interest,” said the OIG ...
Keefe Bruyette & Woods questioned what would happen if the GSEs were dismantled in its recent financial podcast. Bose George, analyst with KBW, said, given the increase in guaranty fees, it’s clear that at least for higher quality loans, the private sector is ready to price just as competitively. “But we see two risks if the GSEs go away,” he said. George noted that the five trillion dollars worth of GSE MBS guarantees, which currently have no capital behind them, will need capital if that moves over to the banking system. And he said it’s safe to assume that will translate into higher mortgage rates.
Fannie Mae and Freddie Mac single-family mortgage servicing grew at a relatively stable pace during the fourth quarter of 2016, but the nonbank share was up significantly. A new Inside The GSEs analysis and ranking shows that the two guaranteed $4.496 trillion of single-family mortgage-backed securities outstanding at the end of December. That was up 1.0 percent from the third quarter and 0.8 percent higher than at the end of 2015. But nonbanks held the mortgage-servicing rights on some $1.476 trillion of GSE single-family MBS, up 4.7 percent from the end of the third quarter. Their GSE servicing grew a whopping 18.5 percent during 2016, while banks and other depositories managed a small 0.6 percent increase.
Treasury Secretary nominee Steven Mnuchin’s recent comments that he’s not a fan of recapitalizing and releasing Fannie Mae and Freddie Mac and wants to find a “bipartisan solution” to GSE reform has caused speculation about what reform will look like under the Trump administration.The comments, made during his Senate confirmation hearing last week, presented a softer take on housing reform than his earlier comments suggested. Shortly after being ...
RSS