More small banks can soon receive qualified-mortgage status for certain originations even if the loans would otherwise be non-QMs thanks to provisions in the Dodd-Frank reform legislation signed into law last week. The new type of QM will be available to banks and credit unions with less than $10.0 billion in total assets. Originations held in portfolio by such institutions will receive QM status if they meet a variety of standards. The exemption is already provided to depositories with ...
Issuers of non-agency mortgage-backed securities continued to bring a variety of deals in May. JPMorgan Chase and Redwood Trust are set to issue separate prime non-agency MBS and nonprime MBS is on the way from Deephaven Mortgage and Lone Star Funds. Both Chase and Redwood continue to include mortgages eligible for sale to the government-sponsored enterprises in their issuance. Such loans will account for essentially half of the $650.5 million issuance ...
Mortgages for self-employed borrowers look to be an area of growth for non-agency lenders. Embrace Home Loans and Truss Financial Group introduced separate products for self-employed borrowers recently. Embrace said its “beyond” products will provide finance to borrowers that other lenders have denied. “Beyond is our program that offers financing solutions for borrowers who don’t easily fit into the guidelines for conventional mortgages,” the lender said. “They call it ...
The Structured Finance Industry Group is developing best practices for servicing fees that are passed through to non-agency mortgage-backed securities. As part of the effort, the industry group is seeking examples of servicing fees that have been disputed. The non-qualified mortgage share of originations by banks increased slightly in 2017, according to a survey by the American Bankers Association. Some 10.0 percent of bank originations in 2017 ... [Includes five briefs]
Mortgage brokers and their wholesale funders gained some share in the FHA/VA market during the first quarter of 2018, according to a new Inside FHA/VA Lending analysis. Survey data collected by Inside Mortgage Finance show that all three production channels took big hits in FHA/VA volume in early 2018. The $49.11 billion in government-insured lending reported by participating lenders was down 20.7 percent from the previous quarter and 10.8 percent below the volume the group generated in the first three months of 2017. Correspondent production remained the biggest source of FHA/VA loans, accounting for 53.5 percent of the survey sample in the first quarter. But production through this channel was down 22.2 percent from the previous three-month period, a slightly larger decline than seen overall. Four of the top five lenders in the group have strong correspondent platforms, especially ... [Chart]
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