The regulator cautioned that a large downpayment alone isn’t sufficient to prove a borrower’s ability to repay a non-QM that is based on the consumer’s assets.
The Republicans made a big splash earlier this week promoting the Hensarling bill, motivating the Democrats to employ a parliamentary ploy that has not been used in the committee in 20 years.
S&P Global Ratings proposed changes this week to its criteria for rating non-agency MBS. The changes would provide higher ratings to certain tranches of non-agency MBS backed by new prime mortgages while prompting lower ratings for new issuance backed by seasoned mortgages. The rating service is considering a number of adjustments to foreclosure assumptions, loss severity projections and changes relating to the evaluation of qualitative factors. “The proposed revisions to our methodologies and assumptions are...
Secondary market participants would see a host of changes across the regulatory landscape under a detailed discussion draft of an overhaul to the Dodd-Frank Act that began circulating late last week from the office of House Financial Services Committee Chairman Jeb Hensarling, R-TX. The Financial CHOICE Act, resurrected from the 114th Congress and revised in a number of key areas, would eliminate the Dodd-Frank risk-retention requirements for ABS other than residential mortgages. Elsewhere, wording in the bill has been included...
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