Some industry experts say mortgage executives will not feel safe about originating – or securitizing – more than a miniscule amount of non-agency loans until the government stops taking “retribution” against the housing finance industry for the sins of the housing bust. Lewis Ranieri, who helped launched the mortgage-backed security business, said the biggest victims of the mortgage crisis are minority borrowers and young workers who no longer qualify for credit because of tight underwriting guidelines promulgated by Fannie Mae and Freddie Mac since they went into conservatorship back in September 2008. But tight underwriting isn’t the sole problem, Ranieri argued...
Mortgage lenders that sell loans to the government-sponsored enterprises are seeing a significant increase in the volume of buyback reviews on recently originated mortgages, according to a new analysis of repurchase activity disclosures by Inside Mortgage Trends, an affiliated newsletter. Through the first three months of 2013, GSE sellers had already repurchased some $80.6 million of loans securitized by Fannie Mae and Freddie Mac during 2012. That was more than double the volume of repurchases of mortgages originated in 2011. Loan quality didn’t deteriorate...
Fannie Mae’s “bifurcated” mortgage program that allows lenders to get a better price for selling their mortgage servicing rights while retaining representations and warranties tied to origination and sale to the government-sponsored enterprise has been gathering momentum over the past six months. According to servicing advisors, the effort has played an important role in returning liquidity to the MSR market, especially for medium-sized lenders that lived in fear of buybacks and headaches tied to representations and warranties. “The program is...
Mortgage lending industry representatives were unanimous in their view that the Consumer Financial Protection Bureau’s ability-to-repay rule and “qualified mortgage” standard, as currently constituted, may severely restrict access to mortgage credit on multiple levels. Testifying earlier this week before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, James Gardill, chairman of the board of WesBanco, Inc., said on behalf of the American Bankers Association that the QM rule will limit mortgage lending because the QM guidelines narrow lending parameters. “Even within the QM framework, many concerns remain that could limit credit availability to a diverse group of consumers,” Gardill said. Debra Still, chairman of the Mortgage Bankers Association, said...
Yet another plan to reshape the mortgage market has been published, this one from noted housing economist Mark Zandi, and Ellen Seidman, once the nation's top S&L regulator.
MBA pushes for GSE AU engines to be synchronized. Meanwhile, a factoid of mortgage history: Treasury chief Paulson wanted Fannie and Freddie put in receivership.
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