FHFA Director Mark Calabria said any revised qualified mortgage rule introduced by the CFPB should be applicable to all lenders. Industry participants are unsure how the regulator will address the issue.
First-lien mortgage lending hit $700 billion during the third quarter of 2019, the market's biggest output in a dozen years. VA loan guarantee volume hit a record level; private MI business may have as well.
If the mortgage industry doesn’t change the way flood risk is assessed, lenders could begin to “blue-line” certain areas, refusing to lend due to unacceptable flood risk, according to a paper published by the San Francisco Fed.
Earlier in the year, production forecasts were downright glum. But thanks to the never-ending rate rally, 2019 could turn out to be a $2 trillion-plus year for originations.
Legislation was passed earlier this year to curb abuses tied to VA rapid refis but lender violations remain an issue. At least, that’s how the VA sees it. Big audits may be in the works.
The industry is bracing for another round of negative servicing marks tied to MSRs. However, strong origination results for the third quarter should buffer the carnage.
Origination pipelines remain full and lenders, for the most part, are feeling optimistic about profits. Can it last? Probably, as long as rates remain low.