Committee Chairman Tim Johnson, D-SD, said the structure of the government guaranty for MBS “must be explicit, appropriately priced, and stand behind private capital that is not guaranteed.”
JPMorgan Chase’s settlement with the Federal Housing Finance Agency regarding representation and warranty claims on non-agency mortgage-backed securities could prompt large settlements by other banks, according to industry analysts. Chase agreed last week to pay $4.0 billion to settle claims on $33.8 billion of non-agency MBS purchased by Fannie Mae and Freddie Mac. The securities were issued between 2004 and 2007 by Chase, Bear Stearns and Washington Mutual. The settlement sets a “relatively high bar” for ...
Wells Fargo originated nearly one out of every five jumbo mortgages completed in 2012, according to a new analysis and ranking by Inside Nonconforming Markets of Home Mortgage Disclosure Act data. Wells had a 17.8 percent share of the $220.51 billion in non-agency jumbo mortgages originated last year, more than double its nearest rival. The origination volumes are based on one-unit conventional loan limits for specific metropolitan statistical areas and the $417,000 conforming loan limit [Includes one data chart] ...
As credit standards continue to tighten in the face of soon-to-be-implemented regulations, potential nonprime borrowers will increasingly find themselves marginalized in the mortgage market, according to Lewis Ranieri, the former Salomon Brothers vice chairman who helped pioneer mortgage-backed securities four decades ago. In a new white paper Ranieri co-authored, he makes the case that mortgages with credit scores below 680 are currently considered subprime, while the subprime cutoff before the ...
Lenders are urging federal regulators to conform the definition for qualified residential mortgages with the qualified mortgage standards established by the Consumer Financial Protection Bureau. While regulators suggested that stricter standards for QRMs would prompt securitizations of non-QRMs, lenders warn that such standards would be onerous and likely significantly reduce non-agency mortgage originations and securitization. The Dodd-Frank Act requires federal regulators to establish risk-retention ...
Federal regulators issued guidance last week stating that they don’t anticipate elevated fair lender risk for lenders that choose to offer only mortgages deemed by the Consumer Financial Protection Bureau to be qualified mortgages. The guidance was prompted by concerns from lenders that would rather not originate non-QMs. “The agencies recognize that some creditors might be inclined to originate all or predominantly qualified mortgages, particularly when the ability to repay rule ... [Includes two briefs]
Financial industry trade groups want all Title II forward mortgage loans that meet FHA requirements to be treated as “safe harbor” qualified mortgage loans instead of being lumped in either of two QM buckets as proposed by the Department of Housing and Urban Development. Commenting on HUD’s proposed definition of a “qualified mortgage,” the industry groups – Mortgage Bankers Association, Consumer Bankers Association, Consumer Mortgage Coalition, American Bankers Association, and the Independent Community Bankers of America – urged HUD to ...
Proposed options for adjusting FHA products, market presence and powers could have a direct effect on the availability of credit for borrowers and on the FHA’s ability to respond to changing market conditions, according to a new study by the Government Accountability Office. In certain instances, the recommended changes would entail tradeoffs – a downside for every upside. Industry participants, researchers and the FHA have suggested these options to improve FHA’s long-term viability or for shrinking the agency’s footprint in the mortgage market. The GAO undertook the study to determine ...
RSS