The regulator cautioned that a large downpayment alone isn’t sufficient to prove a borrower’s ability to repay a non-QM that is based on the consumer’s assets.
The Republicans made a big splash earlier this week promoting the Hensarling bill, motivating the Democrats to employ a parliamentary ploy that has not been used in the committee in 20 years.
A lot of ABS issuers that sat out the final three months of 2016 came back to the market early this year, according to a new Inside MBS & ABS analysis and ranking. Some $53.38 billion of non-mortgage ABS were issued during the first quarter, a huge 55.9 percent jump from the previous three-month period. The market didn’t quite match the high point of last year, but issuance in the first three months of 2017 was up 23.1 percent from the same period in 2016. First-time issuers and those that didn’t issue in the fourth quarter accounted...[Includes two data tables]
Recent signs of life in the nonprime securitization market have lifted the hopes of participants from coast to coast, but a potential snafu could be in the works in the form of strong investor demand for whole loans. According to some participants, recent whole-loan bids have been as high as 104. “That’s for newly originated non-qualified mortgages,” said one manager who spoke under the condition his name not be used. The implication is...
Secondary market participants would see a host of changes across the regulatory landscape under a detailed discussion draft of an overhaul to the Dodd-Frank Act that began circulating late last week from the office of House Financial Services Committee Chairman Jeb Hensarling, R-TX. The Financial CHOICE Act, resurrected from the 114th Congress and revised in a number of key areas, would eliminate the Dodd-Frank risk-retention requirements for ABS other than residential mortgages. Elsewhere, wording in the bill has been included...
As Congress considers changes to the Dodd-Frank Act and other regulatory reforms, the Structured Finance Industry Group weighed in with a white paper detailing various regulatory reforms sought by participants in the MBS and ABS markets. One of the top priorities for the trade group is the so-called Regulation AB2, which sets loan-level disclosure requirements for securities. The Securities and Exchange Commission set...
Ocwen Financial’s travails continued to worsen this week after rating agencies announced adverse ratings actions amid the servicer’s mounting regulatory and legal problems. On April 24, Moody’s Investors Service placed Ocwen’s servicer assessment on review for a possible downgrade. On April 25, Fitch Ratings revised its previous rosy affirmation of the company’s primary servicer rating and stable outlook to negative. Both firms said the ratings actions were due to the increased regulatory scrutiny on Ocwen’s servicing operations, which could lead to hefty penalties that could pose a threat to the company’s financial stability. On April 20, a consortium of state mortgage regulators filed...
With Fannie Mae and Freddie Mac set to lose their capital buffers in eight short months, industry trade groups, think tanks and policy wonks are churning out reform blueprints at warp speed these days even though Congress likely won’t act until sometime next year, if then. Last week, the Mortgage Bankers Association floated its plan to reconstitute the two government-sponsored enterprises – followed by several critiques, not all of them kind – and this week the Independent Community Bankers of America published its proposal. Both plans throw...
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