We talked a handful of wholesalers and were told the figure is much lower – in the range of 2.2 percent to 2.5 percent. Broker-sourced loans account for less than 10 percent of all loans funded today,

When in doubt, hire an outside QM/ATR consultant to assure compliance.

Some rating agencies fear that many of the jumbo entrants not only lack historical loan performance data, but have not yet established track records for remedying representation and warranty breaches.

But do Fannie and Freddie really represent a faulty business model, as the White House and Treasury Department keep declaring?

Will an increase in non-QM lending arrive in time to bolster the mortgage industry?

It is unclear exactly when Jay Memmott left Seterus.

In other mortgage-stock news, Ellie Mae Co-founder, Chairman and CEO Sig Anderman has been exercising stock options of late, and selling shares in the company.

Jumbos for borrowers with strong credit profiles present banks with limited risks – particularly adjustable-rate mortgages – and the loans offer lucrative opportunities to cross-sell other products.

Others believe thesecases could have a chilling effect on FHA lending to the detriment of first-time homebuyers and borrowers with insufficient cash for a downpayment.

On Fannie Mae and Freddie Mac mortgages with private mortgage insurance, average closing times declined to 42.5 days from 46.0 days.