Mortgage bankers are concerned how the proposed FHA fee will be applied and whether it may cause lenders to become even more cautious and less incented to use the full FHA credit box.
Prospect Mortgage had roughly $975 million in committed warehouse lines at yearend. Its three largest providers include UBS Securities, Bank of America/Merrill Lynch and Fannie Mae.
In early September, in an exclusive report, Inside Mortgage Finance broke the news about funding delays at the company. At the time, a Nationstar spokesman blamed the situation on the changing of document custodian vendors. (It would not name the vendor.)
When survey participants were asked to what extent the QM rule would affect their business, the most frequent responses were 10.1 percent to 20 percent and 90.1 percent to 100 percent, each of which snagged 20 percent shares of the responses.
Adam Levitin, a professor at Georgetown University Law Center, is critical of efforts to align the QRM rule with the QM. “Skin in the game is meant to be a systemic stability regulation, but it has instead been pegged to a consumer protection regulation,” he said.
In a rambling, 6-page letter sent to the GSE’s board, Fairholme Managing Member Bruce Berkowitz claims Fannie Mae’s equity securities are now valued by the market at $36 billion.
Among the components of the CFPB's ability-to-repay/qualified mortgage rule, the 3 percent cap on fees and points was by far of greatest concern, a recent survey by the National Association of Realtors found. According to the NAR, 60 percent of survey respondents indicated that they were "very concerned" about the 3 percent points-and-fees cap. Also on the list of high concerns were the limitations on the annual percentage rate relative to the average prime offer rate for the general QM standard and the FHA's QM standards.
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