Home Point and UWM earnings reports suggest the GSEs’ new limits on cash window purchases and caps on certain mortgage products took a bite out of the profits of some larger wholesalers.
In the mortgage industry, the FCA has been used by the Department of Justice and Department of Housing and Urban Development to punish FHA lenders for sloppy underwriting practices that led to defaults.
In particular, one clause could rankle mortgage industry participants: HUD also agreed to notify FHFA of any Fair Housing Act complaints related to counterparties of Fannie and Freddie.
JMP said it sounds like “these actions” by the GSEs “primarily targeted nonbank wholesale channel lenders, of which UWM [United Wholesale Mortgage] and HMPT are among the largest.”
Any reform to the executive compensation structure at Fannie Mae and Freddie Mac should be made with an eye toward the companies eventually exiting conservatorship, the trade group said in a comment letter to the FHFA.