Consumer advocate Mike Calhoun questioned if lenders will offer non-QMs at all, due to the liability posed by such originations and their designation as “less safe” mortgages.
According to Alice Alvey of Indecomm Mortgage U, “many shops are reassessing originator comp plans for January 2014 to adjust to the changing margins and seize the opportunity to blame it on the change in the law."
Many mortgage originators and aggregators say they would use some form of recording, either audio or audio/video, to help with QM compliance and fighting potential lawsuits.
Shrinking default rates and lower refinance volumes have forced a shift in the mortgage industry’s focus to the purchase market, but lenders must beware that the current business environment is vastly different than yesterday’s purchase market, experts said at the Mortgage Bankers Association’s annual convention last week. Matthew Vernon, a home loan sales executive at Bank of America, told attendees that a small but critical distinction to remember is that lenders aren’t going into a purchase market ...
Fannie Mae and Freddie Mac this week reported a combined $3.53 billion of mortgage repurchases and other buyback resolutions during the third quarter of 2013, the lowest quarterly amount in three years, according to a new analysis by Inside Mortgage Trends. Buyback resolutions declined by 28.2 percent from the second quarter, even as the government-sponsored enterprises wrapped up large-scale settlements with a handful of their largest sellers. Fannie and Freddie so far this year ... [Includes one data chart]
The bipartisan Senate blueprint for secondary mortgage market reform includes several key provisions designed to facilitate small-lender access when Fannie Mae and Freddie Mac are no longer around.
The mortgage slowdown will separate the men from the boys, the girls from the ladies. It's time to fire all underperforming loan officers, says mortgage consultant David Lykken.
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