Although mortgage bankers are enjoying their strongest profit margins in years, smaller nonbank shops continue to live in fear that Fannie Mae and Freddie Mac – under the auspices of their regulator – may soon unveil higher net-worth minimums. Officially, the net-worth minimum is set at $2.5 million for both government-sponsored enterprises, although Fannie Mae has imposed volume limits on some newly approved seller/servicers that have posted big increases in their sales to the GSE. Several industry executives and their outside advisors fully expect...
Fannie Mae and Freddie Mac lenders will be allowed to offer certain additional incentives to encourage more borrowers, particularly those underwater, to refinance under the Home Affordable Refinance Program, according to guidance issued by the two government-sponsored enterprises. The GSEs announced last week that lenders will be allowed to offer a “refinancing incentive” to underwater borrowers so they may obtain a lower payment or move to a more stable product or a shorter term. “As a result of lender inquiries, the Federal Housing Finance Agency has led...
Residential mortgages sourced through the correspondent channel and sold to Fannie Mae and Freddie Mac increased by 26 percent in 2012 compared to the year before.
The mortgage banking industry’s record level of profitability may have peaked, as gain-on-sale margins have already begun to slip and more dark clouds appear on the horizon, according to industry analysts.
Lenders One, the nation’s largest mortgage cooperative, is telling its members they need to get their Fannie Mae servicing approvals by the end of January to be eligible for discounts under an affinity deal it has with the GSE.
The Federal Housing Finance Agency said it has settled one of its numerous lawsuits against non-agency mortgage-backed securities issuers for misrepresenting deals that were sold to Fannie Mae and Freddie Mac before the mortgage market collapse.
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