Last March, major dealers simply didn’t have the liquidity to accommodate the volume of agency MBS being sold. Would a clearing facility speed up settlement enough to prevent a similar market failure in the future?
Securitizing mortgages can be expensive and recent PSPA changes might force the hand of smaller lenders, at least that’s how some trade groups see it. (Includes three data charts.)
The CFPB proposed extending the GSE “patch” through September 2022 while new leadership at the regulator considers revisions to the general QM standards.
More non-agency originations, lower market share of non-QMs and securitization of riskier loans are likely consequences of the CFPB’s new QM standards.