In certain ways, HUD’s "qualified mortgage" definition is less restrictive than the CFPB edict, including setting no limit on a borrower’s debt-to-income ratio.
Warehouse commitments extended to nonbanks fell 16 percent on a sequential basis in the third quarter to roughly $20.5 billion, according to new figures compiled by Inside Mortgage Finance. Compared to the same period a year earlier, commitments tumbled even more: 20 percent. The drop in commitments mirrored, somewhat, the fall-off in residential originations, which declined almost 19 percent in the third quarter. However, commitments measure how much credit a warehouse lender is willing to provide – not how much it actually provides. Wells Fargo, the nation’s largest warehouse lender, had...[Includes one data chart]
“The CFPB’s treatment of balloon loans was a step in the right direction, and demonstrated recognition of the unique nature of community banking and a different approach to regulating them,” the CSBS says in a new white paper.
The changes are part of an extensive overhaul aimed at boosting the rural housing market, increasing the availability of rural home loans and spurring the construction of new homes in rural areas.
Fitch says nonbank servicers resolve delinquencies at a significantly faster pace than banks, partly due to the loss-mitigation requirements for the five big banks included in the $25 billion national servicing settlement.
Treasury could withhold HAMP incentive payments to CitiMortgage, but noted that after considering all relevant factors, it has chosen not to at this time.
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