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QM Patch Expiration Could Shift More High-DTI Loans to FHA

November 2, 2018
Certain potential changes could materially affect origination volume and determine the government-sponsored enterprises’ direction going forward, according to analysts. One of those changes could have a significant impact on the FHA market. Wells Fargo Securities analysts recently looked at three potential developments in the Fannie Mae/Freddie Mac sphere and evaluated their effects on the broader mortgage market. Two of those potential changes – loan limits and guarantee fees – are controlled directly by the Federal Housing Finance Agency, while the third relates to the temporary GSE qualified-mortgage exemption, or “QM patch,” which could affect the FHA market. All three factors loom over the mortgage landscape as the FHFA expects a new director in January 2019, who is likely to be more right leaning and could shift the focus back to shrinking the ...
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Waterfall Unit Brings First Rated MBS Backed by Non-Agency Reverse Loans Since 2007

November 1, 2018
Brandon Ivey
The deal is backed by jumbo reverse loans with a total unpaid principal balance of $571.8 million…
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loanDepot Unveils Warehouse Securitization for Mello Unit

October 30, 2018
Paul Muolo
Clayton Services has been hired to conduct due diligence reviews every 90 days on 100 randomly selected loans.
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Prestwick Announces Auction of GSE, Private Investor MSRs

October 29, 2018
Paul Muolo
Fannie Mae receivables dominate the package at $70.9 million...
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MBS Backed Fix-and-Flip Bridge Will Expand, Morningstar to Take a Conservative View Initially

October 29, 2018
Brandon Ivey
Fix-and-flip loans generally have terms that range from a few months to three years…
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Short Takes: Bill Dallas Speaks / FoA’s New Reverse Product / A Blow-Out Earnings Number from Freddie? / Fannie? / No Permanent President for Ginnie, Still / Former FHLB Chicago Exec Named President of CU Mortgage Firm

October 29, 2018
Brandon Ivey and Paul Muolo
On Wednesday, Freddie Mac will release third-quarter results...
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What We’re Hearing: Cut in Half, Ellie Mae’s Share Price / 1H 2019: A Challenge / Walking the Floor of the MBA Show / A Bullish Outlook for Servicing, Non-QM Lending / If Stocks Tank Further, Good Things Might Happen / High on Chris George’s ‘To Do’ List:

October 26, 2018
Paul Muolo
But putting the negativity aside for a minute, there are a couple of bright spots in the industry: Servicing valuations and non-QM lending...
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New Residential Reports Strong 3Q18 Results, Bought $43B of MSR During the Period

October 25, 2018
Paul Muolo
The New York-based real estate investment trust has been on an MSR acquisition tear the past three years...
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Jumbo-Conforming Spread Closer than Perceived

October 24, 2018
Brandon Ivey
During the financial crisis, average interest rates on conforming mortgages were much lower than rates on jumbos…
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Short Takes: Honey, If You Put Any More Money Into that Mortgage Company… / Citadel (Officially) Branches Out into SBCL / $400 Million Next Year? / Fannie Mae Sees Ghost Companies / When Bullying Might Work (Trump and Powell)

October 24, 2018
Paul Muolo
Fannie Mae continues to mine for non-existent companies that might show up on the consumer loan applications submitted to its seller-servicers...
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