Franklin Codel of Wells Fargo noted that while it’s a challenging time in the economy and for lenders, many agree that quality and clarity of who owns the risk matters.
The Consumer Financial Protection Bureau boosted Fannie Mae and Freddie Mac business by some $132.9 billion when it gave the two government-sponsored enterprises a free pass on the debt-to-income ratio requirements of the qualified-mortgage rule. For the non-agency world, a qualified mortgage has to have a DTI ratio of 43 percent or less. While the government-insured market has its own QM rules that effectively ignore DTI, a loan eligible for sale to the GSEs is considered a qualified mortgage if it meets all the QM criteria – such as no interest-only payments – other than the DTI cap. From the beginning of 2014 through the end of the first quarter of this year, about 16.3 percent of the loans securitized by Fannie and Freddie had...[Includes two data tables]
From the beginning of 2014 through the end of 1Q15, roughly 16 percent of the loans securitized by Fannie and Freddie had DTI ratios exceeding 43 percent...
“We are extremely concerned that, one year after the CFPB’s mortgage servicing rules went into effect, we are still finding runarounds and illegal dual-tracking,” said agency Director Richard Cordray.
J.P. Wieske, legislative liaison and public information officers for the WIC, confirmed that the state has made an information request, but would not address content.
Sometimes lost in the hoopla over the rising nonbank share of mortgage servicing is that banks have fallen in and out of love with the servicing market for decades.
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