Leaving the choice of index to the noteholder could lead to volatile payment amounts and default for the borrower as well as problems for FHA’s Mutual Mortgage Insurance Fund, the group says.
FHA moves away from the Catalyst Electronic Appraisal Delivery module; the Mortgage Bankers Association asks the Senate Finance Committee to make the mortgage insurance premium tax deduction permanent; and more.
Despite a drop in jumbo originations, servicing portfolios at many shops increased during the third quarter. Top-ranked Wells Fargo saw its jumbo servicing portfolio go up by less than 1%, while second-ranked Chase did slightly better at 2.6%. (Includes data chart.)
Stronghill Capital of Austin, TX, has launched a new residential lending division that will focus on non-qualified mortgages, non-agency jumbos and loans for investment purposes. This comes at a time when the rest of the non-agency sector is caving in.
JPMorgan Chase is rolling out its first non-prime mortgage-backed security stocked solely with investment-property loans underwritten using debt service coverage ratios. Chase so far has focused on prime borrowers.
Facing continuous losses, Altisource Asset Management has tightened its underwriting standards. Meanwhile, management at AG Mortgage Investment Trust believes there will be opportunities at both the origination and aggregation level in the non-agency market.
JMP Securities initiates coverage of fix-and-flip lender Sachem Capital; S&P Global Ratings agrees to pay a $2.5 million penalty to the SEC; NYSE approves Impac’s compliance plan.
Earlier this year, banks saw an advantage in purchasing jumbo mortgages for their portfolios, but of late it seems as though the edge is beginning to erode.
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