Recent announcements of revised loan-level price adjustments for the government-sponsored enterprises and risk-based pricing are fueling fears of FHA resurgence in the market. Consistent with the Federal Housing Finance Agency’s stated intent to raise the GSE guaranty fees by about 11 basis points, Fannie Mae and Freddie Mac released revised loan-level price adjustments (LLPAs) on Dec. 16. The upfront fee hike takes mortgage rates for affected borrowers close to FHA pricing levels, according to industry analysts.
State attorneys general and the Consumer Financial Protection Bureau reached a long-pending settlement with Ocwen Financial in December. Regulators suggest that additional actions are planned, and they have focused on the largest servicers as well as servicers involved with large transfers. As part of the settlement, Ocwen must complete $2.0 billion in principal reduction for borrowers with negative equity and refund $125.0 million to the nearly 185,000 borrowers who went through improper foreclosures from ...
Just how important are Fannie Mae and Freddie Mac to the revenue picture of the U.S. government? According to calculations from The Collingwood Group, a Washington-based consulting firm, GSE dividends in 2013 will be the fourth largest source of federal revenue.
The qualified mortgage requirements set to be implemented next week present jumbo lenders with opportunities as well as compliance challenges, according to industry participants. “We are particularly bullish about the jumbo mortgage business because we believe that multiple regulatory and competitive factors provide strong tailwinds to our business,” Greg Garrabrants, president and CEO of BofI Holdings, said during a recent investor presentation. He said the debt-to-income ratio requirements ...
Non-agency mortgage originations are expected to remain relatively strong in 2014, led by bank jumbo production and an expected resumption of issuance of non-agency mortgage-backed securities. Through three quarters in 2013, an estimated 22.4 percent of the $1.59 trillion in mortgages originated (including second liens) had non-agency execution, according to affiliated publication Inside MBS & ABS, with most of the non-agency activity concentrated in bank portfolios. Total mortgage originations ...
Originations held in bank portfolios couldn't outpace portfolio runoff, according to a new ranking and analysis by Inside Nonconforming Markets. The dollar volume of first liens in bank and thrift portfolios declined by 0.6 percent in the third quarter of 2013 compared with the previous quarter. Total residential mortgages outstanding increased by a scant 0.1 percent during that time, the first quarterly increase in total mortgages outstanding since early 2008. While banks ... [Includes one data chart]
MountainView and The Prestwick Mortgage Group are out in the market with new deals for mortgage servicing rights. The new year should prove to busy for MSR sales.
Chief among the focal points of discussion will be the bureau's new ability-to-repay/qualified mortgage rule, which establishes strong consumer protections that ensure qualified homebuyers have access to safe, affordable home loans they can pay back.
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