The California-based nonbank saw its gain-on-sale margin slip to 228 basis points compared to 298 bps in 1Q21 and a whopping 539 bps in the year-ago quarter...
The 10 bps is passed onto the borrower in the form of a higher note rate. Trade group officials argue that wealthy homeowners generally do not use GSE loans, so they're exempt from the fee.
Multiple lenders tell Inside Mortgage Finance that, in late March, the enterprises began rejecting loans that would have been easily approved in early March.