M&A specialists believe that some lenders obtain their Ginnie approvals merely for the purpose of increasing their franchise value without having solid plans to issue securities.
The only sector that has a higher securitization rate is the government-insured market, where Ginnie Mae production represented 98.5 percent of FHA and VA lending.
In a 10-K filing, PHH said its mortgage business relies on just two firms for 41 percent of its private-label retail business: Merrill Lynch Home Loans at 29 percent and Morgan Stanley at 12 percent.
Servicers would face annual government certifications and biennial examinations by the new regulator/insurance fund. Minimum operational and management standards would be created for internal controls, recordkeeping, audit systems, and reporting, to name just a few.
For lenders that contribute at least 15 percent of the loans included in an issuance, Fitch said it will conduct an enhanced operational review of the lender’s origination program and underwriting guidelines.
How does the Johnson-Crapo bill favor senior preferred shareholders? The language notes that when assets in Fannie and Freddie are eventually sold, the idea is to “maximize the return for the senior preferred share-holders of the enterprises”…
The House Financial Services Committee late last week passed bipartisan legislation that would provide an alternate way of defining “rural” for purposes of the CFPB’s qualified mortgage standard so a bank could make its case to the bureau as to why a jurisdiction should be fit into that category. H.R. 2672 would direct the CFPB to establish an application process under which a person who lives or does business in a state may apply to have an area designated as a rural area for the purpose of exempting certain loans from the CFPB’s ability-to-repay rule if that area has not already been designated as such by the bureau.
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