The mortgage slowdown will separate the men from the boys, the girls from the ladies. It's time to fire all underperforming loan officers, says mortgage consultant David Lykken.
There was no surprise about why. Fannie Mae, Freddie Mac and Ginnie Mae securitized a total of $41.71 billion of refinance loans in October, down 22 percent from the previous month.
Glenn Costello, a senior managing director at KBRA, said the securitization of non-QM loans will require additional credit enhancement relative to QMs.
It does not appear to be a matter of whether a Senate housing finance reform bill will include an affordable-housing component but rather how to structure one that gets both Democrats and Republicans behind it. During a hearing this week, Senate Banking, Housing and Urban Affairs Chairman Tim Johnson, D-SD, said that an affordable housing component is “imperative” to any reform legislation that he and Ranking Member Mike Crapo, R-ID, move through committee. “Fannie Mae’s and Freddie Mac’s mission is...
The Federal Housing Finance Agency has picked two “final” candidates to be CEO of the joint venture developing a common securitization platform for Fannie Mae, Freddie Mac and, potentially, some non-agency MBS issuers. According to industry officials close to the matter, Peter Carroll is one of the candidates to head Common Securitization Solutions, the name of the entity developing the platform. Carroll is currently the assistant director for mortgage markets at the Consumer Financial Protection Bureau. The identity of the other candidate could not be confirmed...
Further declines in refinance activity and some softening in home-purchase lending pushed agency single-family MBS production down to just $93.57 billion in October, according to a new ranking and analysis by Inside MBS & ABS. October was the first month since September 2011 that agency MBS issuance fell below the $100 billion mark. Production last month was down 12.3 percent from September, and it represented the sixth consecutive monthly decline. There was...[Includes two data charts]
Nationstar and PennyMac led the ongoing charge of non-banks into the mortgage servicing business during the third quarter of 2013, according to a new Inside Mortgage Finance ranking. The two companies reported increases in their servicing portfolios of 17.9 percent and 19.1 percent, respectively, from the end of the second quarter. The other stand-out big gain was a 14.2 percent increase in servicing reported by EverBank. Non-bank servicers accounted...[Includes one data chart]
While the Department of Housing and Urban Development’s proposed definition of a “qualified mortgage” is superior to the treatment FHA-insured mortgage loans would receive under the Consumer Financial Protection Bureau’s QM rule, it would add significant regulatory burden and costs and increase litigation risks, warned mortgage lenders. HUD’s proposed distinction between safe harbor and rebuttable presumption loans is unnecessary for FHA loans because they already meet QM requirements, according to industry trade groups. Rebuttable presumption would only impose more costs and reduce credit availability for borrowers who need FHA credit the most and likely create more confusion, lenders said. The inclusion of the FHA annual mortgage insurance premium (MIP) in the annual percentage calculation under the CFPB rule would cause...
A few weeks back, many servicing brokers were predicting a land rush to close deals by year-end, but there’s a new school of thought that predicts sellers might wait until early 2014 to unload some of their deals. “While we don’t expect the [mortgage servicing rights] deal flow to turn off completely for 2013 just yet, we have noticed quite a slowdown in the marketplace as compared to the summer and early fall,” said George Christo, executive vice president of The Prestwick Group. “Many of our conversations with buyers and sellers have pivoted to setting the table for the first quarter of 2014 settlements.” Moreover, the frothy prices being offered for MSRs are...
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