Mortgage investors are beginning to pay more for seasoned non-agency mortgages and demand remains high, according to industry analysts. The sector was also helped by the Federal Reserve’s sale this month of up to $1.33 billion in non-agency mortgage-backed securities acquired from American International Group. “The opening salvo from...

The proposed ability-to-repay rule released this week by the Federal Reserve included special provisions regarding balloon mortgages. Small lenders operating predominantly in rural or underserved areas would be allowed to originate mortgages that would receive “qualified mortgage” protections. “This option is meant to...

Non-agency participants – particularly mortgage-backed security investors – submitted “widely positive” comments regarding Fitch Ratings’ proposed model for rating jumbo MBS. While the Mortgage Bankers Association was critical of Fitch’s proposal to link MBS rating to home prices, Brian Bertsch, a Fitch spokesman, said...

Bank of America and mortgage insurer Assured Guaranty last week reached the biggest settlement to date regarding the bond insurance industry and non-agency mortgage-backed securities. The settlement sets a high bar for future non-agency buyback claims, according to industry analysts. BofA estimates...

The enforcement action taken last week by federal regulators against 14 servicers was the first in a series of servicing reforms and punishments. Regulators are looking into taking action against non-bank servicers, state attorneys general continue to threaten action and federal monetary penalties against servicers remain...

Non-agency participants warn that qualified residential mortgage rules recently proposed by federal regulators will severely limit non-governmental participation in the securitization market. Federal regulators counter that their risk-retention proposal will actually help the non-QRM market. Last week, the sides argued...

The Fed’s proposed rule regarding ability-to-repay requirements and prepayment penalties, along with a proposed rule regarding escrows issued earlier this year would render all of current rules specific to higher-priced mortgages unnecessary, according to the Fed. When finalized, the rules will effectively supersede...

The Federal Reserve this week proposed strong ability-to-repay requirements that expand upon existing rules for higher-priced mortgages and would apply to nearly all mortgages. The proposal – which defines “qualified mortgages” as required by the Dodd-Frank Act – includes stringent penalties for... [Includes one chart]

The Department of Housing and Urban Development selected 18 lenders to participate in the two-year pilot program that will offer certain qualified borrowers low-cost loans to make energy-saving improvements to their homes. Homeowners can use...

FHA lenders with less than $500 million in assets will not have to comply with FHA rules requiring audited fiscal statements each year, a Department of Housing and Urban Development spokesman told Inside FHA Lending this week. The waiver, which will be implemented...