Federal regulators last week proposed a significant expansion in the number of non-agency mortgages that will not need a full appraisal. Currently, non-agency mortgages with loan balances of less than $250,000 don’t need an appraisal if originated by a bank. The regulators proposed increasing the threshold to $400,000. Mortgages below the appraisal threshold still require an evaluation, just not a full appraisal. Banking regulators said the proposal is an effort to reduce ...
Lenders and their warehouse providers have been openly worrying about thinning profit margins for several quarters now with liquidity a primary concern.
Former MBA Chief Dave Stevens on the higher conforming loan limits: “For an industry led mostly by conservatives, this dependence on a socialized financial system is really ironic.”