Democrats in the Senate and the House this week re-introduced a regulatory relief bill that would grant qualified-mortgage status for loans held in portfolio, but only for smaller financial institutions. Banks and credit unions with less than $2 billion in consolidated assets which originate fewer than 2,000 mortgage loans per year could make loans that exceed the 43 percent debt-to-income ratio under the QM standard and still receive the QM safe harbor so long as the loan is held in portfolio, according to a summary of the draft. Depository institutions with less than $10 billion in assets would get...
“Without nonbanks, today’s sluggish mortgage market would be much less vibrant,” according to research released this week by two researchers associated with Harvard University. Their working paper stresses that implementing bank-like standards for nonbanks isn’t the best strategy to mitigate risks in the housing finance system. The paper was authored by Marshall Lux, a senior fellow of the Mossavar-Rahmani Center for Business and Government, which is part of the John F. Kennedy School of Government at Harvard University; along with Robert Greene, a research assistant at the same center. They called...
Notice of the final order on PHH sent the nonbank’s share price tumbling four percent at one point. Regulators say the MI kickback scheme started as early as 1995.
If Fannie Mae and Freddie Mac were privatized, they would likely have to increase their capital from current levels and face increased borrowing costs.
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