Rep. French Hill, R-AR, wants the QM patch to expire as well. “Allowing Fannie and Freddie to continue loading up on high-debt mortgages because of a temporary loophole has had a harmful effect on the broader housing market,” he said.
Discussing Ocwen's $89.7 million loss in 2Q19, CEO Glen Messina said, “I continue to be pleased with the results of our integration, cost re-engineering, MSR sourcing, and lending growth efforts. Despite a more challenging market and business environment to achieve MSR portfolio growth, we remain committed to strengthening the company and returning to profitability..."
Fannie/Freddie "noncore" loans include conforming jumbos, mortgages with debt-to-income ratios greater than 43%, investor loans/second properties and cash-out refinances...
In a new report to its shareholders, Fairholme Capital Management notes the fund it manages owns a 4% position in the preferred shares of Freddie, “which currently trade at less than half of stated liquidation values, implying potential current yields of over 14% per annum.”