In response to concerns from industry participants, the Consumer Financial Protection Bureau recently issued proposed clarifications to its ability-to-repay and servicing rules. The proposal includes changes to underwriting standards for non-agency qualified mortgages. The debt and income ratio standards for non-agency QMs were included in Appendix Q of the ATR rule. The standards were largely based on the FHAs underwriting process. The bureau has received numerous inquiries ...
Changes at Fannie Mae in 2010 would have forced Third Federal Savings and Loan to adjust its underwriting standards if the company was to continue selling mortgages to the government-sponsored enterprise. Instead, TFSL decided to differentiate itself from other lenders and launched a non-agency ARM product. To manage interest-rate risk while serving borrowers that might have trouble qualifying for an agency loan, TFSL shifted from predominantly selling fixed-rate mortgages to Fannie before July 2010 to ...
Citi recently launched a program that allows borrowers to use their savings account to earn rewards which are paid against their mortgage balance. Citi said its Offset Mortgage will allow borrowers to pay off their loan more quickly. The program is available in the New York tri-state area. Borrowers must have a savings account with Citi and an automatic monthly debit for the mortgage payment from a Citibank checking account to participate. Citi said a borrower with a loan amount of ... [Includes four briefs]
Wall Street has unveiled policy proposals calling for premium and guaranty fee adjustments and reduced loan limits for FHA and the government-sponsored enterprises to jump start the return of private capital to the U.S. housing market. The American Securitization Forum said the current level of government activity in the mortgage market is neither sustainable nor advisable. The government, through FHA, Fannie Mae and Freddie Mac, directly or indirectly guarantees 90 to 95 percent of new mortgage originations in the country, the trade association said. While everyone agrees the governments role in housing should be reduced over the long term, there is ...
Skyline Home Loans, a shop controlled by industry veteran Bill Dallas, could double loan originations this year. Roughly 35 percent of its fundings entail purchase money loans.
The private-label market is showing new signs of life, according to Standard & Poors, which predicted that banks are likely to increase their securitization of jumbo mortgages. In a report released late last week, S&P projected $14 billion in non-agency jumbo MBS in 2013. Redwood alone set a goal of issuing $7 billion in non-agency MBS this year and is on pace to exceed that volume, helped by a pending $425 million deal, its sixth of the year. PennyMac Mortgage Investment Trust is also aiming to issue a non-agency jumbo MBS in the Redwood mold in the third quarter of 2013. JPMorgan Chase and EverBank Financial issued...[Includes one data chart]