The rating service predicted that in the coming months, more lenders will be willing to offer non-QMs that allow for debt-to-income ratios above 50 percent and credit scores as low as 620.
The Securities Industry and Financial Markets Association emphasized its concerns about the GSEs’ single security initiative in a letter sent last week to the Federal Housing Finance Agency. A large part of SIFMA’s letter focused on a lack of alignment between Fannie Mae and Freddie Mac. The trade group believes that the FHFA doesn’t have a strong enough role in maintaining the policy and practice alignment of the GSEs. “This causes significant concern about the potential outcome of the initiative,” the letter said, adding that the effective alignment of policies and practices, to achieve a continuing alignment to security performance, is the single most important factor in the success, or lack thereof, of the initiative.
A proposal from the Basel Committee on Banking Supervision regarding banks’ interest rate risk includes provisions that would be “a step backward,” according to the Mortgage Bankers Association.In June, the BCBS issued a consultative document on the risk management, capital treatment and supervision of interest rate risk in its banking book. The committee of 28 regulatory bodies, including the United States, said the proposal aims to ...
Fannie Research Shows House Price Decline for Some Oil States: The prospect of an oil bust draws comparisons to the housing slump of the 1980s in Fannie Mae’s research released Aug. 28. While most Americans enjoyed lower gasoline prices over that period, severe employment losses occurred within the oil industry, and many oil-producing states experienced general economic slowdowns and declining house prices. North Dakota, Wyoming and Alaska are most at risk. …
The U.S. Court of Appeals for the Eighth Circuit this week affirmed rulings from lower courts, noting that the “change in terms” agreement between Lapides and the lender was unenforceable.
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