In a wide-ranging speech – and in supporting documents – Mel Watt also vowed that the GSEs will continue to permit “compensating factors” when weighing a decision to guarantee mortgages where the debt-to-income ratio is north of 43 percent.

Residential originators are getting more confident about lending outside the parameters of the qualified mortgage rule.

Compare ratios have been criticized by some factions of the mortgage industry. Some lenders have complained that the ratio is one reason why originators do not target underserved markets.

Brett Nicholas, president of Redwood Trust, said the real estate investment trust plans to issue its next jumbo MBS around June.

In his comments to reporters, FHFA Director Mel Watt did not rule out Fannie and Freddie engaging in principal reductions to help troubled consumers who have GSE loans.

Among the changes, the two GSEs will no longer require that a lender automatically repurchase a residential loan when a mortgage insurance company rescinds coverage.

A portion of the loans being bought by SLS are tied to 11 non-agency mortgage-backed securities.

A somewhat large Midwestern-based nonbank is now entertaining takeover bids. A deal could happen within 90 days, IMFnews has learned. Stay tuned…

All lenders authorized to process VA loans automatically are required to maintain a QC plan and execute it in the course of originating government backed mortgages.

But don’t expect FHFA Director Mel Watt to mention g-fees or LLPAs when he makes his second public speech Tuesday at the Brookings Institution.