With the increase, the average g-fee for new loans will be in the range of 60 basis points. But there is some good news: FHFA said it would eliminate the up-front “adverse market” fee of 25 bps assessed on all but the four states “whose foreclosure carrying costs are more than two standard deviations greater than the national average.”
Borrowers with existing FHA-insured mortgages may continue to utilize the agency’s streamline refinance program regardless of their loan balance. The current cap of $271,050 for “low cost” areas will remain unchanged.
Ability-to-repay requirements set by the Consumer Financial Protection Bureau could increase losses, liquidation timelines and loan modifications for non-agency MBS, according to Standard & Poor’s. The new requirements take effect Jan. 10 and include assignee liability for certain loans. Liability from the ATR requirements and qualified-mortgage standards are only a concern for non-agency MBS issuers and investors if a borrower defaults. Given the exceptionally strong performance of jumbo MBS issued since 2010, S&P said the threat of higher losses will generally be mild for jumbo MBS. However, performance could eventually decline...
A Manhattan federal judge last week approved a proposed settlement by bankrupt Residential Capital with the Federal Housing Finance Agency to resolve billions of dollars in claims tied to toxic MBS sold to Fannie Mae and Freddie Mac during the run-up to the financial crisis. Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York approved the agreement, which is tied to a settlement the FHFA reached with Ally Financial, ResCap’s former parent, in late October. Under the agreement, the FHFA will receive...
Earlier this week, the Consumer Financial Protection Bureau issued a final rule that allows the bureau to supervise for the first time the nonbank servicers of private and federal student loans that qualify as “larger participants” in the student-loan servicing market. With an emphasis on supervision, the rule is not expected to have much of an initial effect upon the secondary market for student loans. But the CFPB’s expanding role into the sector could change that, especially if there is a crisis in student-loan lending. The bureau’s new rule defines...
The Financial Industry Regulatory Authority, an internal cop for the U.S. securities industry, has proposed a narrower definition of “asset-backed security” to facilitate the reporting of certain transactions, including Rule 144A ABS transactions, to the group’s disclosure system. The new redefined ABS category would apply to a broad group of securities, including ABS pools backed by credit-card receivables, student loans, auto loans and other products and instruments that currently fall under the ABS umbrella. The proposed changes concern required reporting to FINRA’s Trade Reporting and Compliance Engine. Under FINRA’s proposal, ABS is...
Kroll Bond Rating Agency late this week released proposed criteria for rating non-QMs, making it the second rating service to formally seek comments on such criteria.
“Our estimate of legal and rep and warrant reserves for the largest banks is a total of roughly $60 billion,” S&P writes in a new report. “We estimate that the largest banks may need to pay out an additional $55 billion to $105 billion to settle mortgage-related issues, some of which is already accounted for in these reserves.”
Ed DeMarco might possibly name a chairman for the CSP platform and let Mel Watt have the final say on the CEO slot. Two mortgage executives interviewed for the CEO job include Peter Carroll and Luke Hayden.
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