Roughly 2 percent of depositories said they will cease offering mortgages altogether because of the Consumer Financial Protection Bureau’s ability to repay rule and QM standards.
The resulting lender, which will keep the Ethos name, plans to start originating qualified mortgages in the second quarter of 2014 and non-QMs by the end of the year.
“When a servicer recognizes losses on loans previously modified with forbearance, it could significantly impact cash flows across the capital stack,” writes Bank of America Merrill Lynch.
One ad on the radio sounds like The 60 Plus Association is doing the Lord’s work for the pension funds of fire fighters and policemen. After all, public pensions owned GSE stock prior to the crash and lost a bundle.
Hisey, a former Fannie Mae executive, has been given the title of chief strategy and external affairs officer, a newly created position at the nonbank lender/servicer.
The underwriting characteristics on the latest risk-sharing transaction from Freddie Mac have loosened somewhat compared with previous Structured Agency Credit Risk deals, prompting default expectations well above those projected for recently issued jumbo MBS. However, the government-sponsored enterprises’ risk-sharing transactions are still seen as good investments and investor demand has been strong. Freddie is preparing to sell a total of $966.0 million in three tranches to investors based on a reference pool with an unpaid principal balance of $28.15 billion. The deal priced this week. Freddie said more than 75 investors bought in and the deal was oversubscribed. The top tranche on STACR 2014-DN2 available for sale to investors is set...
A North Carolina federal magistrate has recommended that a Justice Department fraud case against Bank of America be dismissed, but he also said a separate Securities and Exchange Commission lawsuit against the bank based on a different federal law should proceed. The DOJ last August filed suit against BofA under the Financial Institutions Reform, Recovery and Enforcement Act, accusing the bank of defrauding investors in the sale of $855 million of non-agency MBS. Last week, U.S. Magistrate David Cayer of the U.S. District Court for the Western District of North Carolina found that the government failed to prove the bank made “material” false statements to the former Federal Housing Finance Board. The DOJ claimed...
In its heyday, S&P used to rate more than 90 percent of new issuance of non-agency MBS, but in 2013 it accounted for just 40.0 percent of the market by dollar volume.
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