At a Senate committee hearing this week, consumer advocates called for stronger enforcement, industry representatives picked on the CFPB and Republicans and Democrats pushed different priorities.
While alternative data and artificial intelligence in the underwriting process could help reduce lending bias, consumer advocates are calling for oversight.
Mark Szczepaniak: "The uptick in nonperforming loans hasn’t been that troubling to us because historically we have always made money on these nonperforming loans and we continued to do that straight through 2020."
Originations of expanded-credit mortgages fell by nearly 30% on an annual basis in 2020 and the sector lost market share. But lenders in the sector believe production will gradually recover. (Includes data chart.)
Lenders can use the QM standards drafted in the waning days of the Trump administration. But there’s no certainty new leadership at the CFPB will leave them as they are.
MFA Financial made an investment in a non-QM lender, Starwood Property Trust is closing in on a similar move, and Western Asset Mortgage Capital expanded its purchase agreements.
Nonprime servicing portfolios fell by 0.7% in 4Q20 and 4.1% year-over-year. But Select Portfolio Servicing boosted its receivables during the year. (Includes data chart.)