In addition to making a decision on how DTI ratios should factor into determining QM status, the CFPB is being asked to endorse an automated underwriting system for the same.

The FHFA is doing its best to make certain the expansionist tendencies of Fannie and Freddie are held in check. Also, a crackdown on g-fee “deals.”

In another about-face, the Consumer Financial Protection Bureau now agrees that its single-director leadership structure is unconstitutional.

Experts doubt the non-agency market can pick up the slack of any reduction in the GSEs’ business once the qualified mortgage “patch” expires.

Dealing with the risks in Fannie Mae’s and Freddie Mac’s portfolio is more complicated than simply reducing the footprint of the government-sponsored enterprises, FHFA Director Mark Calabria told IM&A.

The CFPB received numerous comments on its plan to adjust standards for qualified mortgages. However, industry stakeholders are divided on what steps the bureau should take.

The CFPB released three policies this week to help lenders test innovative products. The bureau is also making joint efforts with at least seven state attorneys general to help improve coordination among regulators.

While several industry participants want the CFPB to choose the spread-at-origination metric to determine QM status, Redwood Trust favors using the DTI ratio.

Will the third quarter be better than the second for originators? Looks that way. Meanwhile, mortgage M&A advisor Houlihan Lokey might wind up as one of Treasury's GSE advisors.

 

Federal regulators are moving closer to allowing more residential mortgages to be originated without appraisals.