Two differing notions have emerged during a recent hearing in the House Financial Services Subcommittee on Housing and Insurance regarding the rapidly changing relationship between private mortgage insurance and the FHA single-family mortgage insurance program. One view is that FHA’s existing policies either ignore or violate basic regulatory principles and continue to crowd out private capital. Compared to state-regulated private MIs, the FHA has far less stringent standards and enforcement from a regulatory perspective has been disappointing. Proponents of this view say that ...
Nationstar Mortgage and Walter Investment Management have focused most of their recent efforts on acquiring agency mortgages and increasing originations of such loans. The shift is due to increased competition for nonperforming mortgages along with the small amount of non-agency mortgages originated since 2008. In January, Walter acquired Fannie Mae mortgage servicing rights with an unpaid principal balance of $128.0 billion from Bank of America and Residential Capital. The servicer said it is handling ...
Nonprime industry veteran Jon Daurio said he has lined up “soft” commitments of roughly $100 million to start a new non-agency mortgage banking firm. Daurio told Inside Nonconforming Markets that the “softness” or “hardness” of the commitments “is dependent on the final terms that I eventually negotiate with a lead investor.” He said the funding will come from private-equity sources. Daurio, who left Kondaur Capital about two years ago, said he could not comment further at this time. He has been ...
Officials at EverBank Financial said demand for non-agency jumbo mortgages is strong from borrowers and investors. The bank has increased its jumbo originations and is in the process of issuing its first non-agency mortgage-backed security. “We see strong demand for the high-quality preferred jumbo product we originate,” Rob Clements, chairman and CEO of EverBank, said this month during an investor presentation. The bank originated $397.5 million in non-agency jumbos during the fourth quarter of 2012 ...
Banks large and small varied their portfolio lending tactics in 2012, with some increasing first-lien originations for portfolio and others allowing runoff and even selling some of their holdings. Overall, bank and thrift first-lien portfolio holdings increased in 2012 compared with the previous year, with originations outpacing prepayments and sales. Banks and thrifts held $1.80 trillion in first-lien mortgages in portfolio at the end of 2012, up 2.3 percent from the end of 2011, according to ... [Includes one data chart]
Interest-only mortgage lending increased significantly in 2012, led by originators willing to portfolio the loans. Lenders expect the originations to remain strong even though the products were singled out in the Dodd-Frank Act and subsequent ability-to-repay rule from the Consumer Financial Protection Bureau. Some $22.94 billion in IOs were originated in 2012 by 15 lenders tracked by Inside Nonconforming Markets. The lenders’ IO production increased by 19.9 percent compared with 2011 ... [Includes one data chart]
A federal judge in Los Angeles last week denied a motion by Bank of America’s Countrywide Financial unit to dismiss securities fraud claims by the Federal Housing Finance Agency on behalf of Fannie Mae and Freddie Mac for toxic MBS purchased by the government-sponsored enterprises.The FHFA’s complaint alleges that Fannie and Freddie purchased approximately $26.6 billion in residential MBS that Countrywide sold from Aug. 30, 2005, to Jan. 23, 2008. The agency alleges negligent misrepresentations and fraud related to the offerings of Countrywide MBS.
FHFA's plan for a single MBS platform that would be managed by a new government entity separate from Fannie Mae and Freddie Mac does not mean the agency is contemplating consolidating the two GSEs at this time.
The Mortgage Bankers Association and other industry trade groups are backing bipartisan legislation that would modify the definition of points and fees in the 'ability-to-repay' and QM rules.
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