New GSE repurchase requirements are now in effect, including the “MI stand-in” option, which Fannie defines as “the full mortgage insurance benefit that would have been payable under the original mortgage insurance policy if the mortgage loan liquidates.”
“We’ve got approximately $72 million [of HARP refinance business that can be done] in this metropolitan area," said FHFA director Mel Watt about Chicago. "People won’t come in and say I want that money.”
So, you doubt our 2Q origination estimate? Here’s what an executive from a top-five warehouse bank told us: “We’re experiencing a significant pick up in outstandings."
One positive trend for the mortgage insurance sector is that the growth in business during the second quarter was squarely in purchase mortgages and traditional MI loan-to-value ranges.
The Democratic proposal calls for private mortgage capital to backstop the first 5 percent of conventional-mortgage securitizations with the remaining 95 percent of risk shared “on a pari passu basis.”
We know of some veteran mortgage bankers who believe the “fix and flip” housing market is getting overheated. One lender told us he fears a severe correction could hit California…
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