Speculators have been gobbling up GSE junior preferred and common, hoping for a payout down the road tied to either the resumption of dividends or money that might come from a recovery fund.
The CFPB likely removed a noticeable amount of political pressure – but not all – from its back by responding to some industry concerns with its earlier ability-to-repay final rule. Last week, the bureau finalized amendments to the ATR rule that expand the legal protections for small lenders to make loans beyond the original rule’s main requirements, and it provided such creditors with a longer period of time in which to adjust to the rule’s restrictions on balloon mortgages. Under last week’s final rule, the CFPB...
Among the changes that the CFPB made to its ability-to-repay rule last week are revisions to how loan originator compensation is counted in the qualified mortgage points-and-fees calculation. Under the Dodd-Frank Act, points and fees on a qualified mortgage may not exceed 3 percent of the loan balance. Further, points and fees that exceed 5 percent will trigger the protections for high-cost mortgages under the Home Ownership and Equity Protection Act. Dodd-Frank also mandates that loan originator compensation be counted toward...
The CFPB, as requested by the mortgage lending industry, has delayed implementing its ban on the financing of credit insurance premiums until Jan. 10, 2014, the effective date for most of the mortgage‐related rules it issued in January. The rule had originally been scheduled to kick in June 1. That effective date was originally proposed because the bureau believed the ban did not present a significant implementation burden for affected institutions. …
EverBank Financial is preparing to issue a $303.30 million non-agency jumbo mortgage-backed security, according to a presale report issued by DBRS this week. The MBS has similar characteristics to the $307 million jumbo security EverBank issued in March. DBRS cited strong reps and warrants on the deal, including automatic reviews for seriously delinquent loans, mandatory arbitration and no sunset provisions. However, the rating service said EverBank’s limited securitization history and ...
Since 2008, big banks have largely held their non-agency jumbo originations in portfolio, seeing better execution than non-agency MBS issuance, but all that could be changing.
According to industry sources, the FHA recently sent out administrative letters to a handful of residential lenders. Meanwhile, yet another new subprime originator has emerged.
Origination trends for non-agency jumbo mortgages were stronger than total mortgage originations in the first quarter of 2013, according to a new ranking by affiliated publication Inside Mortgage Finance. Lenders increasingly see jumbos as an attractive product and a number of smaller players are entering the market or growing their originations. An estimated $54.0 billion in non-agency jumbos were originated in the first quarter of 2013, down 1.8 percent from the previous quarter ... [Includes one data chart]
The new non-agency jumbo mortgage-backed security from JPMorgan Chase has been described as both encouraging and puzzling by non-agency participants. The $442.54 million non-agency MBS shows that Chase thinks the non-agency securities market – largely the domain of nonbanks since 2010 – is strong enough for the bank to issue its second jumbo security this year. Non-agency MBS participants have welcomed the competition, noting that activity from a big bank such as Chase could prompt greater ...
An increase of 10 basis points in the guaranty fees charged by the government-sponsored enterprises would make pricing for agency execution comparable to pricing for non-agency mortgage-backed security issuance, according to industry analysts. Agency g-fees averaged about 50 bps at the end of 2012, with plans for further increases this year. “The economics of non-agency securitization are much closer to GSE securitizations today than they were two years ago,” according to analysts at Barclays Capital ...
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