The long-awaited boom in nonperforming loan sales may finally be here, as megabanks such as Wells Fargo, Citigroup and HSBC have begun testing investor appetites by offering large packages in the open market. According to investors and advisors who play in the space, Wells recently auctioned off an $800 million NPL package and HSBC sold a $750 million portfolio. Recently, Popular Bank said that it entered...
Loan originators seeking to exclude their compensation from the 3 percent points-and-fees calculation under the Dodd-Frank Act could consider becoming a correspondent lender or a net branch operator to skirt the restriction. But industry experts caution that such a plan has its own pitfalls. The possibility of brokers switching hats surfaced as the mortgage broker industry, once again, struggles against what it deems unfair restrictions on broker compensation. The Consumer Financial Protection Bureau appears to have addressed some of these issues with changes to its ability-to-repay rule designed to eliminate double counting in the calculation of loan originator compensation. [See the story on page 5.] The inclusion of loan originator (LO) compensation in the calculation of points and fees under the CFPB rule raises...
Mark Savitt, president of the National Association of Independent Housing Professionals, told Inside Mortgage Finance that including “lender paid” compensation to brokers in the 3 percent cap is “double counting.
Non-agency MBS execution is competitive with agency MBS execution for purchase mortgages with loan-to-value ratios below 70 percent and credit scores above 740.
According to new FHA rules, no less than 20 percent of a lender’s required net worth must be in the form of liquid assets consisting of cash or an equivalent.
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