Interest rate cuts by the Fed prior to the 2023 banking crisis resulted in more than $2 trillion in mark-to-market losses on banks' Treasury and MBS holdings.
Lenders are concerned that the incoming Trump administration might reinstate limits on GSE acquisitions, repeating an action from the first Trump administration.
Mortgage bankers are trying to stay optimistic about the coming months but interest rates are rising, applications are down and inflation hasn’t been fully tamed.
Nonbanks, and even some large banks, would like to keep more of the servicing rights they create this year. But if origination profits sputter, all bets could be off.
The regulator estimates that the move will prompt a jump in mortgage originations. The rule is largely unchanged from an earlier proposal despite concerns raised by mortgage companies.
Regulators in some states controlled by Democrats are poised to increase their oversight of consumer protection laws as the CFPB’s focus is expected to shift under the incoming Trump administration.