The change – whose likelihood was first reported by Inside Mortgage Finance last Thursday – affects new loans with a closing/disbursement date of Jan. 27, 2017.
One big positive for lenders: the mortgage industry could see a reduction in new rule-making from HUD and perhaps a reversal of certain regulations promulgated during the Obama administration.
With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...