Subservicing contracts continue to proliferate. The bad news? These vendors worry about an onslaught of COVID-related work and oversight. (Includes data chart.)
Fannie imposes a draconian 3% cap on NOO loans for some lenders to ensure it meets the 7% cap required under the PSPA. Freddie, already under the cap, puts its threshold at 6%.
Fannie and Freddie have provided lenders with some flexibilities on construction-related loans. Also, they will pause acquisitions of refinances of mortgages with high loan-to-value ratios.
Data confirm that forbearance and income support during the pandemic reduced serious delinquency rates. Economists say deferrals and home price increases should help keep them down.
The pandemic makes sense, but it may not be the real reason why the CFPB has delayed the mandatory compliance date for the QM standards drafted during the final days of the Trump administration.