It appears the House of Representatives is giving up on GSE reform this year. However, the Senate could move forward, even though passage is considered a long shot, at best.
A compare ratio north of 150 percent will land a lender on HUD’s watch list. A ratio greater than 200 percent could result in disciplinary action and potential loss of FHA approval.
If the agencies stick with their current plan to extend QRM status to any home loan that meets the “qualified mortgage” safe harbor, regardless of downpayment amount, private MIs would have to sell their product based on its economic value.
Last month, senior staff from the Senate Banking Committee met with various industry “stakeholders” – including trade associations, consumer groups and academics – to hear their thoughts on housing finance reform and the fate of the GSEs.
The GSEs continued to see solid increases in purchase-mortgage business, which increased by almost 7 percent from July to August. It was the fifth straight monthly gain for the two.
Revised risk-retention requirements proposed last week by federal regulators for certain non-mortgage ABS and commercial MBS are somewhat looser than the standards initially proposed in 2011. Perhaps most significantly, “blended pools” would be allowed for commercial mortgages, commercial real estate loans and auto loans, allowing issuers to mix qualifying loans and non-qualifying loans in the same security. Securitized loans that don’t meet qualifying underwriting standards will be subject to the 5 percent risk retention as required by the Dodd-Frank Act. Blended pools would be eligible for reduced risk retention, as low as 2.5 percent. “The agencies believe...
The firm’s deal will be financed with bonds that are expected to have a five-year maturity, a floating-rate coupon and a rating from a major rating service.
Securities issuers won a major victory as the revised proposed rule on risk retention issued by federal regulators last week removed the requirement for a premium capture cash reserve account. The highly controversial PCCRA was replaced with a fair value calculation requirement for retention which regulators said will increase the value of retained risk compared with the original proposal. “The ASF is extremely pleased to see the elimination of the premium capture cash reserve account provisions from the re-proposed rule,” said Tom Deutsch, executive director of the American Securitization Forum. “The provisions would have completely eliminated the economic incentives of securitizers to issue residential MBS and commercial MBS.” The original proposal generally measured...
With mortgage rates at their highest level in more than two years, the long-awaited boom in mergers and acquisitions may finally be here. But don’t expect sellers to accept just any price. “M&A is picking up,” said Larry Charbonneau, who runs a boutique advisory firm, Charbonneau & Associates. “The big fish want to buy the small ones, but the small ones don’t know if it’s in their best interest to sell yet.” Charbonneau points out...
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