The nonbank took a large loss in the first quarter and halted production. Officials at the firm are now betting on originating GSE-eligible mortgages through call centers to return to profitability in the third quarter.
The proposal could eliminate GSE eligibility as a standard for a loan to be deemed a qualified mortgage. The regulator aims to level the playing field between the non-agency market and Fannie/Freddie.
Bank and thrift holdings of first liens increased just 0.3% in the first quarter. While BofA’s portfolio increased, Wells and Chase cut theirs. (Includes data chart.)