The CFPB and five other federal financial regulatory agencies issued a supplemental final rule last week that creates exemptions from certain appraisal requirements for a subset of higher-priced, higher-risk mortgage loans. The final rule provides that loans of $25,000 or less and certain “streamlined” refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on Jan. 18, 2014. In addition, the final rule contains special provisions for manufactured homes, which can present unique issues in...
During the first half of 2013, only about $2.05 billion of FHA loans exceeded $625,500, or about 1.5 percent of FHA business, according to Inside Mortgage Finance.
Lenders generated an estimated $218 billion in purchase mortgages during the third quarter, the highest three-month volume since the third quarter of 2007.
New residential MBS production represented 78.4 percent of primary-market mortgage originations during the first nine months of 2013, according to a new Inside MBS & ABS analysis. A total of $1.243 trillion of residential MBS were issued during the first three quarters of this year, with only $12.2 billion coming from the non-agency MBS market. At the same time, an estimated $1.585 trillion of new home loans were made by lenders, yielding a 78.4 percent securitization rate. The securitization rate was...[Includes one data chart]
“There has been significant industry confusion concerning the extent to which affiliate fees are included in the points-and-fees calculation, particularly when only a portion of a fee is retained by an affiliate,” the Mortgage Bankers Association said.
According to an analysis by Inside Nonconforming Markets, Fannie Mae’s portfolio of guaranteed subprime mortgages is declining much more rapidly than Freddie’s.
From what we understand, some GSE employees with MBS backgrounds are eagerly volunteering their services to the CSS project, believing that the “end product,” the MBS, is where the future lies.
The rating services are slowly rolling out their criteria for non-agency mortgage-backed securities issued after the Consumer Financial Protection Bureau’s qualified-mortgage requirements take effect. The consensus among the rating services appears to be that jumbo issuers will initially stick to QMs that receive safe-harbor protections. To meet QM requirements, lenders must document eight underwriting characteristics, including income, employment and debt-to-income ratio. QMs also cannot include ...
After years of servicing loans for distressed subprime borrowers but avoiding mortgage originations, Ocwen Financial is planning to offer nonprime mortgages. “Nonprime lending is sort of like crabgrass,” William Erbey, Ocwen’s executive chairman, said last week at an investor conference hosted by the firm. “I’ve been around long enough to see it get hit by Roundup and come back through the cracks.” Ocwen jumped into the agency origination market last year with its acquisition of Homeward Residential ...
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