The top three rate-spread lenders in 2010 were major banks – largely because of the sheer size of their total originations rather than a focus on rate-spread lending, according to an analysis of new Home Mortgage Disclosure Act data by ComplianceTech and Inside Nonconforming Markets. Meanwhile, Texas accounted for the largest share of rate-spread lending during the year. ... [includes two data charts]

Despite low mortgage rates and home prices, significant barriers still stand in the way of a potential first-time homebuyer. A new tax-preferred mechanism for downpayment savings could work towards lowering these barriers, with the added benefit of incentivizing saving habits, according to a policy brief from the Progressive Policy Institute. The “HomeK” account would be carved out of savings mechanisms such as individual retirement accounts and 401(k) accounts allowing a person to separate up to 50 percent of employee contributions into a sub-account. Account-holders could then disburse their money to make a...

The improvements that the Federal Housing Finance Agency is expected to make to the government’s Home Affordable Refinance Program will likely come at the expense of MBS investors, say experts. The outlines of an expanded HARP are far from clear, but the FHFA is said to be giving serious consideration to lifting the 125 percent loan-to-value limit, in addition to waiving loan-level pricing adjustments, representation and warranties imposed on lenders, valuation requirements and the portability of mortgage insurance. The agency, which oversees Fannie Mae and Freddie Mac, is expected to make an...

Lenders looking to participate in Redwood Trust’s jumbo securitization efforts must meet high standards, according to a review of the real estate investment trust’s new jumbo mortgage-backed security. The major originators in the $375.2 million jumbo MBS Redwood issued last week were all considered “above average” by Fitch Ratings. Redwood has invested significant resources into its jumbo conduit and correspondent program in an effort to revive non-agency securitization. ...

Lenders and consumer advocates are bitterly divided over rules for alternative mortgages released by the Consumer Financial Protection Bureau in July. While lenders generally support the preemption in the interim final rule, the Center for Responsible Lending raised major concerns about the rule and the “spread of the subprime virus.” The CFPB’s interim final rule on the Alternative Mortgage Transaction Parity Act was required by the Dodd-Frank Act. ...

Alt A mortgages and interest-only loans held by Freddie Mac will be subject to new buyback reviews due to issues with the government-sponsored enterprise’s settlement with Bank of America. An audit released last week suggests that the GSE lost billions of dollars by failing to include thousands of alternative mortgages in the buyback analysis. The Federal Housing Finance Agency’s Office of Inspector General conducted the audit and – at the request of the FHFA and Freddie – redacted the exact amount of money potentially “left on the table.” ...

Holdings of home-equity loans by banks and thrifts fell by 1.9 percent in the second quarter of 2011 compared with the previous quarter, according to the Inside Mortgage Finance Bank Mortgage Database. Delinquencies on the loans remain low but banks are being subject to greater regulatory scrutiny regarding their treatment of HELs. Banks and thrifts held $1.23 trillion in HELs at the end of the second quarter of 2011. The serious delinquency rate on the loans was 2.04 percent, down from 2.09 percent the previous quarter. ... [Includes one data chart]

Two nonconforming-focused mortgage companies controlled by Fortress Investment Group have suffered setbacks recently. Springleaf Financial Services is facing investor uncertainty, while Nationstar Mortgage was unsuccessful in its bid for Bank of America’s correspondent division. Fitch Ratings downgraded Springleaf’s issuer default rating to CCC from B- in September. ...

Subprime lending remained subdued in 2010, according to newly released data from the Home Mortgage Disclosure Act. Higher-priced mortgages – the Federal Reserve’s revised proxy for subprime mortgages – accounted for 3.2 percent of the number of loans originated in 2010. Some $7.14 billion in higher-priced mortgages were sold in 2010, according to a new analysis by Inside Nonconforming Markets. Ginnie Mae continued to account for the largest portion of the sales at 35.0 percent in 2010, up from 21.1 percent the previous year. ... [Includes one data chart]

Redwood Trust issued its second non-agency MBS of the year this week with just one rating, a sign of dramatic change in the role of credit ratings in the market. During the heyday of the non-agency MBS market, very few public deals went to market without at least two ratings and some transactions were rated by all three of the top credit rating services. Standard & Poor’s was the market leader for years, but Fitch has had a virtual monopoly on the jumbo MBS sector, which totals just two deals so far this year. S&P has effectively taken to the sidelines in rating non-agency MBS backed by new mortgages, according to...