While the limit is near the level of GSE acquisitions of non-owner occupied properties in recent years, the way the cap has been implemented is prompting lenders to seek new outlets.
While correspondent sales volume increased on an annual basis in 2020, two of the top five sellers posted diminished sales. Guaranteed Rate and loanDepot are less reliant on correspondent sales than the other top sellers. (Includes data chart.)
In a bid to diversify its product offerings, New York Community Bank is merging with the mortgage-centric Flagstar. Three other depositories are engaged in M&A deals as well.
It marks the first residential MBS rated by Kroll that aligns with a social bond framework. Fitch Ratings also rated the deal, though the firm appeared to be somewhat less impressed.
Months of improvements in the performance of non-agency MBS stalled earlier this year, though delinquencies resumed a downward trend at the end of March.
The pandemic makes sense, but it may not be the real reason why the CFPB has delayed the mandatory compliance date for the QM standards drafted during the final days of the Trump administration.
Mortgage performance improved, thanks to a healing economy and federal stimulus. Still, delinquencies and forbearance rates remain high. (Includes data chart.)
At issue: the new QM standards were drafted when the CFPB was under the leadership of Republican Kathleen Kraninger, who was appointed during the Trump administration.
Equities watcher Henry Coffey writes: “As the largest player in the wholesale or broker direct channel, UWM does have some pricing power, and over time, we are expecting to see pressure on margins ease and the big three to five players in the market settle into a more balanced cadence…”