If left unresolved, the tightness of mortgage credit would result in a much lower percentage of homeowners because most potential new homebuyers would likely be Hispanic or nonwhite – groups with lower income, less wealth and lower credit scores, according to a new study by the Urban Institute. Author Laurie Goodman, co-director of UI’s Housing Finance Policy Center, noted the very tight mortgage credit situation that has developed since the mortgage crisis, which she attributed to mortgage lenders becoming more cautious than ever in their lending.
A program launched in September to provide grants to mortgage brokers has helped launch 15 new independent mortgage brokerage shops, according to the National Association of Mortgage Brokers. The NAMB KickStart program provides a grant of up to $10,000 to help launch broker operations. The program started with financial support from United Wholesale Mortgage. “After mega banks pinned mortgage brokers as the scapegoats of the financial crisis in ...
Some 53.7 percent of newly originated mortgages delivered into agency mortgage-backed securities programs last year were generated through lenders’ retail production operations, according to a new Inside Mortgage Trends analysis. Correspondents accounted for the next largest share, 33.4 percent, of loans sold to Fannie Mae, Freddie Mac and Ginnie Mae. The data exclude mortgages that were over six months old when they were securitized ... [Includes two data charts]
Esaki and White propose allowing issuers to choose any number of rating services to submit credit support levels for a particular MBS or ABS, paying a bid-preparation fee for each estimate.
There have been scattered reports that some lenders and brokers are still chasing quick-turn refis aided by secondary market investors offering to buy and securitize those loans.
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