The silver lining in the 2Q numbers is a strengthening home-purchase market. Fannie and Freddie securitized $81.7 billion of home-purchase mortgages during the second quarter, their highest quarterly volume since the second quarter of 2009.
The Federal Reserve will go ahead with proposed rule changes related to mortgage servicing rights, but with what it calls a “lengthy transition period.”
Jumbo conduits such as Credit Suisse and Redwood Trust are working to increase the number of correspondent lenders they work with as the non-agency jumbo mortgage-backed security market starts to rebound. The conduits offer attractive execution for lenders that don’t want to hold jumbo originations in portfolio, according to industry participants. Jumbo conduits are “a real business that’s going to be in this for the long term,” said Peter Sack, a managing director at Credit Suisse, during a webinar hosted by Inside Mortgage Finance late last week. Some $3.9 billion in non-agency jumbo mortgage-backed securities were issued...
A high percentage of FHA-insured mortgage loans were deemed unacceptable after a post-endorsement review performed by the FHA revealed material defects that apparently went undetected at the time the loans were approved, according to the Department of Housing and Urban Development. In a recent report by HUD’s Office of Lender Activities and Program Compliance, 44 percent of 6,251 single-family mortgage loans that underwent post-endorsement loan reviews in the first quarter of 2013 were found initially unacceptable. Under the FHA’s three-tier rating system, loans are rated as “conforming,” “deficient” or “unacceptable.” The review found...
Although the recent spike in rates spooked some players in the non-agency market, conduits like Redwood Trust and Credit Suisse are still in the hunt for new customers.
Gordon Albrecht, executive vice president for FCI Lender Services, said, “The less the banks lend, for whatever reason, the more goes to private-money firms.”
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