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.
Come next year, Freddie Mac will assess lenders a fee of $7,500 if they fail to deliver mortgage loans with an aggregate principal balance of more than $5 million.
Although table-funding transactions fell slightly in terms of market share in the first quarter, prospects are looking up for mortgage brokers. According to the Bureau of Labor Statistics, 78,500 men and women were employed as full-time mortgage brokers in March, the highest reading since the summer of 2008, when the housing and mortgage markets were in a free-fall. Trade group officials who represent brokers report they are seeing more wholesalers engaged in table funding ... [Includes one data chart]
Mortgage underwriting standards have loosened slightly recently, though nowhere near levels seen during the subprime boom. Federal regulators are concerned that not enough lending is being directed toward borrowers with lower credit scores. In November 2012, the average credit score on newly closed loans was 750, according to Ellie Mae. Average scores have largely declined each month since then, to 742 in April. During that time, credit scores on conventional mortgage originations declined by ...
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