Roughly $5 billion worth of expanded-credit loans were stranded, looking for a home but investors wouldn’t bite unless the originator/seller was willing to take a major haircut on the sale. And many did.
With nonbanks continuing to steal market share away from depositories, warehouse commitments have been going through the roof. Of course, ultra low mortgage rates help...
But there’s something else to think about here. Let’s say Democrat Joe Biden (DE) wins the White House in November. After being sworn into office, will he act swiftly to dismantle this very controversial loan-level private adjustment?...
FHFA said it originally approved the purchase of forborne loans to improve liquidity in the market. On Wednesday, agency Director Mark Calabria reiterated that assertion: “Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic.”
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