Origination pipelines remain full and lenders, for the most part, are feeling optimistic about profits. Can it last? Probably, as long as rates remain low.
Fannie and Freddie can keep more of what they earn thanks to a new Treasury/FHFA edict, but buying stock in the two companies remains a dicey proposition.
Witnesses at a House subcommittee hearing on the reverse mortgage program called for improved servicer oversight, mandatory loss mitigation for new HECMs and a new risk rating system.
Based on reports from non-QM lenders Angel Oak and Citadel, the third quarter was a strong one for most originators. Meanwhile, the Ditech wind-down is almost over.
In addition to making a decision on how DTI ratios should factor into determining QM status, the CFPB is being asked to endorse an automated underwriting system for the same.