In an effort to convince large investors to buy AAA tranches of non-agency MBS, the benchmark transaction under development with help from the Treasury Department will include a deal agent or transaction manager. “Part of the centerpiece [of the non-agency MBS benchmark transaction] is around the role of a new player in these transactions, an independent deal agent that represents the interests of the investors,” said Michael Stegman, counselor to the Treasury ...
High guarantee fees and loan-level pricing adjustments charged by Fannie Mae and Freddie Mac are not enough to counteract lingering MBS investor mistrust and draw private players back into the housing finance market, according to a top industry official. “The Federal Housing Finance Agency seems to believe that by raising costs for loans purchased or guaranteed by the government-sponsored enterprises, they can lure private sector capital back to the mortgage market ...
The Community Home Lenders Association wants a portion of the quarterly profits that Fannie Mae and Freddie Mac give to the Treasury Department put in a reserve account to help smaller mortgage lenders, according to a recent letter the trade group wrote to Treasury Secretary Jack Lew. The group contends that the Preferred Stock Purchase Agreement funds should be set aside in a reserve account to capitalize a cash window for smaller mortgage lenders that would ...
Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center, is among those who support Treasury’s push to include a deal agent in the benchmark non-agency MBS.
Use of a deal agent in new non-agency mortgage-backed securities will help convince large investors to return to the market, according to industry participants. The benchmark non-agency MBS in the works with help from the Treasury Department will include a deal agent, according to Michael Stegman, counselor to the Treasury on housing finance policy. At a talk this week hosted by the Financial Services Roundtable and CoreLogic, Stegman noted that Treasury continues to ...
The Consumer Financial Protection Bureau’s ability-to-repay rule was an “over correction” in terms of income documentation standards, according to Peter Carroll, executive vice president for mortgage policy and counterparty relations at Quicken Loans. At a talk this week hosted by the Financial Services Roundtable and CoreLogic, Carroll said the ATR rule has limited Quicken’s originations of mortgages for borrowers who have significant income that’s accounted for outside of ...
Lenders of all stripes continue to push for changes to rules established by the Consumer Financial Protection Bureau. There are divisions among trade groups about which lenders deserve special treatment regarding qualified mortgages and portfolio lending, among other issues. This week, the Community Mortgage Lenders of America proposed that lenders should receive regulatory relief if they are small, largely focus on qualified mortgages and avoid regulatory ...
A recent $36 million settlement agreement between Golden First Mortgage Corp. and the federal government is raising questions about the lender’s ability to pay. The Department of Justice apparently has a plan to collect from a company that is no longer in business and hardly generated enough revenue to pay the full settlement amount. Whatever that plan is, the agency is not disclosing it. Based in upstate New York, Golden First agreed to pay up to resolve allegations that it ...
The reverse mortgage lending industry is asking the Consumer Financial Protection Bureau to clarify that reverse mortgages are excluded from proposed changes to mortgage servicing rules relating to “successors in interest.” In a comment letter, the National Reverse Mortgage Lenders Association warned that requiring lenders to determine which parties meet a new regulatory definition of “successor in interest” could expose lenders to numerous, costly risks. The requirement would ...
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