Compared to June 30, MBS investments by REITs are off 6 percent. Moreover, the industry has lost nearly all of the huge volume of MBS that were acquired in early 2012.
Wells, Bank of America and JPMorgan Chase accounted for a combined 44.7 percent of the $517.75 billion in bank HELOCs outstanding at the end of the third quarter.
Advisors note that Walter should be concerned that it has a large MSR portfolio – $194 billion at Sept. 30, according to figures compiled by Inside Mortgage Finance – but a relatively small origination platform.
“In our view, the primary risk associated with some lenders being less than fully prepared for QM could be temporary loan production delays,” the consulting firm adds.
Loan broker Anne James, who runs Reliance Funding in Wittier, CA, told us recently that “I have wholesale lenders calling me daily to sign up.” She notes, however that “Loans are not dropping out of the sky” but adds that she’s getting quite a few calls for second mortgages.
Whether a given mortgage meets the criteria of a qualified mortgage under the CFPB’s ability-to-repay rule, in and of itself, will not be considered a safety- and-soundness issue, according to joint supervisory guidance issued late last week by federal financial regulators. Nor will QM status – or the lack thereof – be a make-or-break issue in terms of Community Reinvestment Act compliance, the feds added, echoing similar guidance issued back in October. “From a safety-and-soundness perspective, the agencies...
The Conference of State Bank Supervisors called upon Congress to confer small creditor “qualified mortgage” status upon all mortgages held in portfolio by community banks, as part of a larger call to “right-size” federal regulations that disproportionately focus on the risks to huge institutions, at the expense of smaller institutions.One of the primary examples of regulatory relief for smaller institutions has come from the CFPB’s Small Creditor QM rule, the organization said in a white paper released last week. The small...
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