There’s more to federal regulators’ risk-retention proposed rule and qualified residential mortgage requirements than the 30 percent downpayment option that the industry has strongly pushed back against. Lenders are also concerned about proposed disclosure requirements, horizontal risk retention and sunset provisions for risk-retention requirements. In August, six federal regulators issued a revised proposed rule for risk-retention requirements mandated by the Dodd-Frank Act. Non-agency securities backed by mortgages that don’t meet QRM requirements will be subject to required risk retention of at least 5 percent by the issuer or contributing lenders. If regulators conform the definition for QRMs with the standards for qualified mortgages established by the Consumer Financial Protection Bureau, more than 95 percent of originations will meet...
“Our concern is whether companies have the resources internally to ensure that such arrangements are working as they should,” said one Ginnie Mae official. “Is the issuer adequately protecting itself and Ginnie Mae?”
CFPB chief Richard Cordray believes "the QM space has been drawn quite broadly" and estimates that more than 95 percent of the loans made in the current market will be deemed qualified mortgages.
According to figures compiled by Inside Mortgage Finance, the GSEs took in $16 billion from buybacks during the first six months of 2013. At the same time, lenders succeeded in getting $7 billion in repurchase requests withdrawn.
“The president believes that Rep. Watt is the very best person to lead the agency at this important time for the housing market and our economy, and that having a confirmed FHFA director in place will help promote certainty for the housing industry,” said a White House spokesman.
Rep. Maxine Waters, D-CA, announced an agreement to fix unintended consequences (significantly higher premiums) from the Biggert-Waters Flood Insurance Reform Act.
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