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Jumbo MBS Revival Won’t Come Until Tapering Begins in Earnest

January 8, 2014
Brandon Ivey
The tapering of the Federal Reserve’s quantitative easing beginning this month will do little to end the advantages agency MBS have over new jumbo MBS.
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FHFA’s Watt Makes It Official: 10BP G-Fee Delay; 120-Day Notice on Any Hike

January 8, 2014
Paul Muolo
Mel Watt has quickly endeared himself to lenders, home builders and Realtors by delaying (scrapping?) Ed DeMarco's g-fee hike. As for Mr. DeMarco...
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40-Year-Old Mortgage Insurance Trade Group Ready to Fold?

January 8, 2014
Paul Muolo
The irony cannot be missed: the mortgage insurance sector is profitable again, but its trade group likely will fold.
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Short Takes: Mel Watt Ready to Announce New Hires at FHFA? / Nader to Watt: What are You Going to Do With My Stock Holdings? / GSEs Won’t Earn a Ton Forever / Radian Has Strong Month / DocMagic Officials Get Industry Nods

January 8, 2014
Paul Muolo and Thomas Ressler
New FHFA Director Mel Watt is expected to shakeup some of the senior staff at the Federal Housing Finance Agency.
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Time Running Out for Senate GSE Reform Legislation

January 8, 2014
Charles Wisniowski
Senate Banking Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, are drafting their own housing finance reform/GSE bill that likely will be superimposed over the Corker-Warner measure.
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Western Bancorp Offers Non-Agency ARMs to the Self-Employed Via Wholesale Channel

January 7, 2014
Brandon Ivey
Western Bancorp said it will lend to borrowers with credit scores as low as 620 and the loans are available to non-owner-occupied properties and first-time homebuyers.
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Mortgage Complaints at the CFPB Decline But Only on a Sequential Basis

January 7, 2014
Thomas Ressler
However, a year-over-year look at the data shows a much poorer performance across the board, with overall grievances up 42 percent at Dec. 31, 2013, versus year-end 2012.
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Servicing M&A May Result from New CFPB Rules

January 7, 2014
Paul Muolo
Among other things, Fitch sees the compliance/cost squeeze leading to a wave of industry consolidation in the mortgage servicing industry.
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PennyMac Loan Services Sells Excess MSRs to Affiliate

January 7, 2014
Paul Muolo
The sale was disclosed in a new SEC filing. The MSRs are backed by $10.8 billion of Ginnie Mae product.
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Short Takes: $87,500 a Year for a Flood Insurance Policy? / Industry Takes Note of W.J. Bradley Lawsuit Story / Tommy Lee Gets Part of LPS / Mortgage Credit Loosens Slightly / Ginnie Posts Strong Profits, But It’s No Fannie or Freddie

January 7, 2014
Paul Muolo and Charles Wisniowski
One mortgage executive had this to say about the W.J. Bradley case: “This is fascinating for the implications of whether the LO or the company owns the customer. As you know, LOs have their little black books (or thumb drives) of all their customers and their information."
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