The Community Home Lenders Association wants to make sure that small lender protections like preserving the cash window and limiting the number of guarantors in the market are included in GSE reform legislation. Late last week, the trade group sent a letter to the Senate Committee on Banking, Housing and Urban Affairs about the importance of access for small lenders. “Fannie and Freddie must be preserved and recapitalized, pursuant to a utility model, with the capability to serve the entire small-lender market on fully competitive terms,” the letter said. CHLA said a utility model would work best for small lenders because it ensures their primary role of facilitating loan securitizations.
Retail mortgage-origination platforms tend to generate lower-risk mortgages than other channels, according to a new Inside Mortgage Trends analysis of home loans delivered into Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities.
Bill Maloni, a retired Fannie executive who’s been tracking the reform debate for years, believes the Corker bill, if enacted as is, eventually will place the secondary market in the hands of the megabanks.
Calabria is a former director of financial regulation studies at the Cato Institute, a conservative think tank that would like to do away Fannie and Freddie…
Even though residential originations could fall by as much as 20 percent this year, lenders are continuing to pay top dollar for high-producing loan officers, in what some call a “pricing war.”
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