In addition to having the most failed metrics, CitiMortgage was found to be in “widespread” noncompliance with the timeliness requirement to notify a borrower of any missing documents in his modification application.
The treatment of balloon loans under new federal rules is one example where regulation is taking a broad brush approach that disadvantages community banks.
Lewis Ranieri, one of the inventors of the non-agency mortgage-backed security, said there are currently a lack of viable alternatives to agency mortgages.
Former top CFPB officials are banking on the widespread assumption that most mortgage lenders plan to avoid making mortgages that do not meet the “qualified mortgage” standard under the bureau’s ability-to-repay rule. Raj Date, the former deputy director at the CFPB, and three other high-placed bureau alums, Garry Reeder, former chief of staff; Chris Haspel, former senior advisor for mortgage servicing and securitization; and Mitchell Hochberg, former regulatory senior counsel, have created a new consumer finance company called Fenway...
New single-family MBS issuance accounted for a record 90.1 percent of home loan originations during the first quarter of 2013, according to a new Inside MBS & ABS analysis. An estimated $500.0 billion of new home mortgages were originated during the first three months of the year, down 4.8 percent from the fourth quarter of 2012, as refinance activity began to weaken. But mortgage securitization activity declined at a slower pace, falling just 0.6 percent in the first quarter. That pushed...[Includes one data chart]
The recent market tumult caused by suggestions that the Federal Reserve’s quantitative easing program (QE3) may soon be tapering off is likely over, and price adjustments may have created good buying opportunities in the non-agency MBS sector, according to analysts. With less than $1 trillion in MBS still outstanding in the market, and very few higher-yield investment options around, non-agency MBS remains a good investment choice, said Bank of America Merrill Lynch analysts Chris Flanagan, Ryan Asato and Justin Borst. In their latest market analysis, the BAML researchers said...
Officials at the Consumer Financial Protection Bureau claim that lenders will originate home loans that don’t meet the new qualified mortgage standard, though industry participants have been skeptical due to the liability involved with such loans. Raj Date, the former deputy director of the CFPB, announced last week that his new firm will indeed originate non-QMs, with an initial focus on non-agency jumbo mortgages. “It’s an example of a great market opportunity where we can ...
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