Jaron Van Maanen of the FDIC said the lender should determine if the factor determining the LO’s comp consistently varies with terms over a significant number of transactions...
Two Harbors Investment is working to increase its non-agency conduit activity, launching a nonprime product along with a low-downpayment jumbo for high-quality borrowers. Officials at the real estate investment trust said Two Harbors also plans to be a regular issuer of non-agency mortgage-backed securities. “It has been clear to us for some time that the market has a need for products like this, and we are excited to be able to extend our reach as a capital provider to these segments ...
With growth via acquisitions of servicing portfolios on hold, Ocwen Financial is pursuing a number of different initiatives, including originations of non-agency mortgages. The nonbank primarily known for servicing high-touch mortgages is currently testing originations of jumbo mortgages and working toward originating nonprime mortgages. “The business is building a robust new product pipeline and is currently in the market testing a new jumbo mortgage product,” Michael Bourque ...
Originations by nonbanks of loans that don’t meet standards for qualified mortgages are off to a slow start, according to industry participants. “There is obviously a lot of noise in the area, a lot of announcements about people getting involved. And from what we have seen, there is nothing of any size and replicable flow that seems readily securitizable,” Michael Commaroto, CEO of Apollo Residential Mortgage, said this week during a call with investors. He said ...
Lenders can vary the compensation paid to loan originators for portfolio loans versus originations of mortgages to be sold to investors, but only in certain circumstances, according to officials at the Federal Deposit Insurance Corp. The LO compensation rule issued by the Consumer Financial Protection Bureau in 2013 provides a two-part proxy analysis to determine whether LO comp can be based on certain factors. FDIC officials addressed questions regarding the LO comp rule in a recent webinar ...
The Department of Housing and Urban Development will not take on the new points-and-fees cure provision for qualified mortgages adopted by the Consumer Financial Protection Bureau. The agency is concerned that lenders might inadvertently violate the FHA’s statutory 3.5 percent downpayment requirement. HUD adopted other changes in the CFPB’s revised final rule on ability to repay and qualified mortgages (ATR/QM) to maintain consistency but saw no need for any further ability to cure points-and-fees errors. Reimbursement of any excess points and fees to the borrower could take away from the mandatory 3.5 percent downpayment and render the loan ineligible for FHA insurance, the agency explained in a notice published in the Nov. 3 Federal Register. HUD said it would provide lender guidance under its own QM rule on ...
Reinstating the government-sponsored enterprises’ conventional 97 percent loan-to-value mortgage programs would benefit first-time homebuyers and borrowers with little or no cash reserves for a downpayment but adversely affect the FHA Mutual Mortgage Insurance Fund, according to analysts. If limited to first-time homebuyers, a conventional 97 LTV loan would offer some new homeowners better home loan financing than FHA and provide greater access to mortgage credit, said analysts with Bank of America Merrill Lynch. For years, Fannie Mae offered conventional 97 LTV loans through its MyCommmunityMortgage to help first-time homebuyers purchase a home with only a 3 percent downpayment. It was a better alternative to FHA’s main product, which required a 3.5 percent downpayment. The Fannie product also had less ...
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