“While we’re trying to lend fairly in an unfair world, the regulatory and enforcement apparatus have created this environment that we’re in and they will be looking to enforce based upon those rules,” said industry consultant Maurice Jourdain-Earl.
Investors at private equity firms told IMFnews that they believe Lawsky is using the DFS as a “bully pulpit,” paving the way for a possible run for public office.
GOP senators recently dispatched a letter to FHFA Director Mel Watt, countering a plea signed by 33 Democrats in January calling on the agency director to immediately authorize GSE funding to the National Housing Trust Fund and the Capital Magnet Fund.
Mortgage bankers are concerned how the proposed FHA fee will be applied and whether it may cause lenders to become even more cautious and less incented to use the full FHA credit box.
Prospect Mortgage had roughly $975 million in committed warehouse lines at yearend. Its three largest providers include UBS Securities, Bank of America/Merrill Lynch and Fannie Mae.
In early September, in an exclusive report, Inside Mortgage Finance broke the news about funding delays at the company. At the time, a Nationstar spokesman blamed the situation on the changing of document custodian vendors. (It would not name the vendor.)
When survey participants were asked to what extent the QM rule would affect their business, the most frequent responses were 10.1 percent to 20 percent and 90.1 percent to 100 percent, each of which snagged 20 percent shares of the responses.
Adam Levitin, a professor at Georgetown University Law Center, is critical of efforts to align the QRM rule with the QM. “Skin in the game is meant to be a systemic stability regulation, but it has instead been pegged to a consumer protection regulation,” he said.
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