The source continued: “Fannie and Freddie have the right to put non-compliant loans back to the originator. Eventually, someone will ask whether they knowingly bought loans that had TRID violations…"
“I would say that [MSR] prices are reasonable now,” said one advisor who spoke under the condition his name not be used. “The bid/ask spread has come down a little bit.”
In 1Q, the residential MBS sector was down 7.1 percent from 4Q15 with $277.05 billion in new issuance. It was the lowest output since the second quarter of 2014...
Falling mortgage rates helped spur a modest increase in refinance activity during the first quarter of 2016, but not enough to offset a slowdown in other parts of the securitization market, according to a new Inside MBS & ABS analysis and ranking. A total of $318.34 billion of residential MBS and non-mortgage ABS were issued during the first three months of the year, a 3.6 percent decline from the fourth quarter of 2015. It was the lowest amount of new issuance since the second quarter of 2014 and put the market 8.1 percent behind the level reached in the first quarter of last year. Non-mortgage ABS issuance was...[Includes three data tables]
As the non-conforming secondary market continues to grapple with headaches surrounding TRID errors and scotched jumbo deals, another storm may be brewing: whether Fannie Mae and Freddie Mac are buying loans that – if tested properly for violations – would reveal flaws. The good news for the lending industry is that the government-sponsored enterprises are not now conducting routine post-purchase file reviews for technical compliance for TRID errors. The GSEs now are just checking to make sure the new consumer disclosures, which merge the requirements of the Truth in Lending Act and the Real Estate Settlement Procedures Act, are being used. Still, that has not prevented...
Since the Federal Housing Finance Agency’s March filing to transfer lawsuits initiated by Fannie Mae and Freddie Mac shareholders to a new court, a number of plaintiffs have filed motions opposing the transfer, arguing that the cases are substantially different from one another. FHFA said it was looking to prevent future “copycat” cases and ensure a more consistent ruling across the board by having all of the cases heard in the U.S. District Court for the District of Columbia instead of scattered in different jurisdictions throughout the country. On April 6, the attorneys for plaintiffs David Jacobs and Gregory Hindes said...
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