The recent letter from CFPB Director Richard Cordray to the Mortgage Bankers Association clarifying certain aspects of the bureau’s integrated disclosure rule has some important take-aways – and certain limitations – the industry should be mindful of, according to some top industry attorneys. In a recent online blog posting, attorneys Donald Lampe and Leonard Chanin of Morrison & Foerster LLP identified a handful of key take-aways for mortgage market participants related to the TRID rule. First, “If mortgage loan originators and others involved in the origination, financing and sales of mortgage loans are not familiar with the benefits of [specific] Know Before You Owe disclosure cure provisions, now is the time to assess them,” the attorneys began. They then noted that Cordray’s ...
Although the CFPB recently issued a “clarifying” letter on errors tied to the TRID integrated disclosure rule, deep concerns remain among originators that fund non-agency product for sale into the secondary market. Moreover, according to interviews conducted by Inside Mortgage Finance, an affiliated publication, some nonbank lenders are seeing noticeable increases in origination costs because loans are taking longer to close and therefore remain on warehouse lines for an extended period of time. Because nonbanks fund almost all of their production using warehouse credit, the implication boils down to this: already squeezed profit margins are going to shrink. Industry efforts to comply with the new disclosures, which merge requirements of the Truth in Lending Act and the Real Estate Settlement ...
But all is not rosy. At JPM, mortgage servicing balances continue to decline and the bank’s executives expect production margins will compress as origination volumes diminish…
As the Home Affordable Refinance Program ushers in its last year, the Federal Housing Finance Agency has charged Fannie and Freddie with developing an alternative to the popular refinance program created in 2009 to help underwater borrowers. Originally set to end in December 2013, the HARP program has been extended twice and will be put to rest on Dec. 31, 2016. At that time, the FHFA said the GSEs should have a high loan-to-value ratio refinance program in place and ready to kick off in January 2017. The FHFA’s 2016 scorecard for the GSEs directed Fannie and Freddie to “finalize post-crisis loss mitigation options for borrowers, including loan modifications, and develop an implementation plan and timeline.”
Correspondent originators and mortgage brokers continued to churn out relatively more purchase mortgages than retail lenders during the fourth quarter of 2015, according to a new Inside Mortgage Trends analysis of agency loan-level data. Some 34.6 percent of single-family loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the final three months of last year were originated by correspondent lenders. And 69.1 percent of those loans ... [Includes one data chart]
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