More than 80 percent of bankers expect mortgage credit is going to be constricted because of the CFPB’s new mortgage rules, which took effect in January, according to the results of the latest Real Estate Lending Survey from the American Bankers Association. More specifically, in discussing the impact of the ability-to-repay/qualified mortgage rules on credit availability in the market generally, 41 percent said there will be a measurable reduction in credit availability across all mortgage lending segments. Forty percent said there will be a measurable reduction in credit availability in the non-QM lending segments only, and 20 percent said there will be no measurable impact on mortgage lending levels, regardless of QM or non-QM classification. When asked to characterize the...
In a statement submitted for the record to the House Financial Services Committee last week, the Mortgage Bankers Association said it remains concerned that the CFPB’s ability-to-repay rule could unduly tighten mortgage credit for a significant number of creditworthy families who seek to buy or refinance a home. To improve the rule, the MBA rattled off a handful of suggestions, the first of which was to establish cure procedures. “The CFPB should adopt rules allowing lenders to cure calculation errors and other processing mistakes made while attempting to meet the qualified mortgage requirements,” the trade group said. “Without such procedures, lenders will be forced to avoid transactions at the boundaries of the points-and-fees cap, debt-to-income limits and the annual percentage...
During a recent webinar on MSR strategies, industry attorney Larry Platt of K&L Gates said he knows of “certain sales that have been held up for quite some time.” He noted: “You really can’t get a handle on what the cause of it is.”
The MBA said applications for purchase-mortgages with high loan balances have increased in recent months while applications for lower-balance mortgages has declined…
The National Association of Realtors also urged the FHA to use its “granted discretion” to adjust loan limits for areas that have experienced significant declines.
HMBS Quarterly Issuance Down by 30 Percent. Issuance of securitized Home Equity Conversion Mortgages remained low as HMBS issuers created only $510.1 million in new HMBS pools during March, the third lowest total in almost five years, according to the latest market analysis by New View Advisors. This brought HMBS issuance in the first quarter of 2014 to $1.7 billion, the lowest quarterly total in nearly five years, said NVA. By comparison, HMBS issuance totaled $2.5 billion in the fourth quarter of 2013 and $2.4 billion in the first quarter of 2014. 1Q14 has the lowest HMBS issuance since 2Q09, when the program was at its infancy. In March, 86 HMBS pools consisting of 41 original issuances and 45 tail pools were issued. Original HMBS issuances refer to a pool of HECM loans securitized for the first time, while tail HMBS issuances are pools created from the uncertificated portions of HECMs that have ...
The FHA has extended the filing deadline for lender recertification to June 9, 2014, to match the agency’s timeline for switching to the Lender Electronic Assessment Portal (LEAP). LEAP is a new system that will serve as a one-stop shop for all lender approval and recertifications. It replaces the current “Lender Approval” and “Cash Flow” web pages in FHA Connection as well as the current system lenders use to submit financial information as part of recertification. LEAP is scheduled to be fully operation this month, although consolidation of Title I and II lender identification numbers has already taken place on March 31. Last year, the FHA issued guidance extending the filing deadline for all lenders with a December 2013 fiscal year end. Although the guidance recommended that lenders be prepared to complete their recertification no later than May 31, it also stated that ...
Ginnie Mae will provide a one-month grace period to April 30, 2014, for issuers to complete the submission of their master agreement to the Master Agreement Management System (MAMS) within the agency’s enterprise portal. The deadline for submission is March 31, 2014. The master agreements must first be accepted by the MAMS before an issuer may request or receive a “Transfer of Issuer Responsibility.” Failure to comply with this requirement could adversely affect the issuer’s ability to obtain commitment authority and to issue new pools or receive pool transfers. Although many issuers have resubmitted their master agreements, some found it difficult to complete the process within the required timeframe, according to Ginnie Mae. Providing a one-month grace period would help issuers to complete their resubmission. Issuers that still experience ...
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