One California-based mortgage broker had this to say: “All the CFPBs is doing is driving up costs, further confusing the consumer, and wasting even more tax payer dollars.”
Mortgage brokers who read the guidance said it reveals how little the young regulatory agency understands about the industry. If a broker has the financial ability to obtain a warehouse line of credit...
Redwood Trust took three months off from issuing jumbo MBS but came back with something of a doozy this week: a $306.05 million deal that will include some loans that don’t meet standards for qualified mortgages and some loans that weren’t subject to third-party due diligence reviews. Sequoia Mortgage Trust 2014-2 is set to receive AAA ratings with credit enhancement of 7.75 percent on the top-rated tranche. While the credit enhancement requirements are somewhat high, a jumbo MBS from Redwood in November had even higher credit enhancement levels, suggesting that the non-QMs and lack of full due diligence aren’t a major concern. Only three of the 438 mortgages to be included in the deal are...
New GSE repurchase requirements are now in effect, including the “MI stand-in” option, which Fannie defines as “the full mortgage insurance benefit that would have been payable under the original mortgage insurance policy if the mortgage loan liquidates.”
“We’ve got approximately $72 million [of HARP refinance business that can be done] in this metropolitan area," said FHFA director Mel Watt about Chicago. "People won’t come in and say I want that money.”
A promising surge in purchase-mortgage lending was the key ingredient in the 13.3 percent increase in agency issuance of single-family MBS during the second quarter of 2014, according to a new market analysis and ranking by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $212.23 billion of single-family MBS during the second quarter. That was a nice gain from an exceptionally poor $187.38 billion in production during the first three months, but it still marked the second lowest quarterly volume since the beginning of 2005 – and it fell short of the $213.12 billion produced at the low point in the financial crisis at the end of 2008. The agencies securitized...[Includes two data charts]
The six lawsuits filed in June by institutional investors against non-agency MBS trustees are just the beginning of actions against trustees, according to an attorney who has pursued representation-and-warranty claims against non-agency MBS issuers. “We are likely to see a flood of litigation against trustees alleging that the banks sat on their hands and blew the statute of limitations on valuable putback claims,” according to Isaac Gradman, an attorney at Perry Johnson Anderson Miller & Moskowitz. The June lawsuits by BlackRock, PIMCO and other institutional investors targeted...
The Home Affordable Refinance Program has nearly reached the practical limit of eligible homeowners willing and/or able to refi – whether or not the regulator of Fannie Mae and Freddie Mac further tweaks the program’s eligibility requirements, say industry observers. This week, Federal Housing Finance Agency Director Mel Watt met with community leaders in Chicago in a town hall-style meeting to discuss the benefits of HARP. Last fall, the agency launched a nationwide public awareness campaign to reach eligible borrowers and encourage them to participate in HARP, with little apparent success. “We are...
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