A handful of firms say they are still aggressively recruiting residential loan officers who have a solid background in purchase-money lending – that is, sales professionals with deep ties to Realtors and home builders.
Loan broker Anne James, who runs Reliance Funding in Wittier, CA, told us recently that “I have wholesale lenders calling me daily to sign up.” She notes, however that “Loans are not dropping out of the sky” but adds that she’s getting quite a few calls for second mortgages.
From what we understand, some GSE employees with MBS backgrounds are eagerly volunteering their services to the CSS project, believing that the “end product,” the MBS, is where the future lies.
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.
Underwriting standards for loans in commercial MBS are loosening due to competition among issuers for volume, according to industry analysts. Issuers have also removed loans from two recent commercial MBS transactions due to pressure to come to the market quickly. “Increasing competition among commercial MBS loan originators raises the risk that they will further lower underwriting standards from the more stringent practices used in early second-generation commercial MBS 2.0 deals,” said Tad Philipp, director of commercial real estate research at Moody’s Investors Service. Analysts at Fitch Ratings said...
Brokers and the trade groups that represent them believe new regulations from the Consumer Financial Protection Bureau put them at a competitive advantage to lenders that actually fund mortgages.
RSS