Major contributors to the jumbo MBS include New Penn Financial with a 25.5 percent share, Prospect Mortgage and Prospect Lending with a combined 20.4 percent share and Quicken Loans with a 15.5 percent share.
According to figures compiled by Inside Mortgage Finance, in the fourth quarter brokers facilitated roughly 9.8 percent of all originations, one of the lowest readings ever.
Industry officials who have studied the issue contend that the Treasury Department does not have the legal right to give Fannie and Freddie back to their junior and common shareholders. In short, it would take an act of Congress.
A new trade group is showing true love for Fannie Mae and Freddie Mac. Also, the Consumer Financial Protection Bureau is giving lenders some breathing room on the Qualified Mortgage/Ability-to-Repay rule.
MBA believes the imposition of compensatory fees has morphed into a risk-sharing mechanism that shifts the costs of the prolonged foreclosure process from the GSEs onto mortgage servicers.
Sen. Heidi Heitkamp, D-ND, a co-sponsor of the Johnson-Crapo bill, also said the measure is moving forward. “This train is leaving the station,” she said. But whether it makes it to the floor of the Senate is another matter.
As far as pricing goes, if g-fees are raised Fannie and Freddie could earn more money – cash that ultimately would wind up at the Treasury Department, which sweeps most of their earnings each quarter.
Since late last year, the FHFA has required that any Fannie Mae/Freddie Mac MSR sale of $5 billion or more – roughly 5,000 loans – be approved by the agency.
Under the original conservatorship agreement, the GSEs are allowed to maintain a small capital buffer, but within three years that buffer will be reduced to zero.
RSS