The hunger for GSE speculation is also causing some investors to buy Fannie/Freddie common which has been rising of late, but not by much. However, one GSE watcher believes that buying the common, "is a fool’s game."
In terms of market effect, a DocuTech executive said that because of the new CFPB rules, "credit is going to slow down for a little while, maybe a month or so."
The lender also recently formed a real estate investment trust, Parkside Mortgage Trust. Matt Ostrander, Parkside’s CEO, said the REIT plans to issue a non-agency MBS later this year or in 2015.
Hoping to jump start the non-agency MBS market, the Structured Finance Industry Group plans to establish a limited number of options on various rep and warrant issues.
The CFPB has released updates to its mortgage origination examination procedures and its mortgage servicing exam procedures. “These updates harmonize existing procedures for handling mortgage origination and mortgage servicing examinations with the revised interagency procedures that address the new mortgage regulations issued in January 2013, which have now taken effect,” the bureau said. The exam procedures for both mortgage origination and mortgage servicing now cover final rules issued by CFPB through November 2013. These...
Smaller residential mortgage servicers are going to be challenged by the increased costs of new servicing requirements from the CFPB as they seek to opportunistically grow through strategic acquisitions, according to analysts at Fitch Ratings. “Many U.S. residential mortgage servicers have been working diligently to meet the new servicing requirements,” the Fitch crew said in a recent analysis. “Many large servicers have already made significant progress towards meeting the Jan. 10, 2014, deadline, in particular those servicers...
Consumer complaints to the CFPB about their mortgages again dropped off during the fourth quarter of the calendar, but were still up 25.2 percent for the 12-month period ending Dec. 31, 2013, versus one year prior, a new analysis by Inside the CFPB shows. One pattern that has emerged over the last nine quarters is that mortgage gripes have been comparatively low during the fourth quarter, only to surge during the next three quarters, and then fall off again in the next three-month period. During the most recent cycle, that has translated into a 33.3...
Last week, the CFPB ordered a Missouri mortgage lender, Fidelity Mortgage Corp., and its former owner and current president, Mark Figert, to pay $81,076 to settle allegations it funneled “illegal kickbacks” to a bank in exchange for loan referrals. The bureau charged that Fidelity, a St. Louis-based non-depository mortgage lender, entered into an agreement with an unnamed bank in which the bank referred potential borrowers to Fidelity in exchange for kickbacks. The kickbacks were disguised as inflated lease payments...
While most mortgage lenders continue to insist they won’t originate new loans that fall outside the CFPB’s “qualified mortgage” parameters, one notable exception is San Francisco-based Bank of the West, which recently announced it will continue to offer interest-only mortgages, despite the fact such loans do not qualify for QM status. “We extensively reviewed the CFPB’s rules and found them broadly consistent with how Bank of the West has always done business,” said Paul Wible, senior executive vice president and head of the bank’s...
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