The latest changes made to the GSEs’ preferred stock purchase agreement place limits on certain loan acquisitions by Fannie and Freddie. However, the move is unlikely to help the non-agency market.
Strong application volume for non-QMs at PCMA; increased funding for investment-property mortgages; CFPB exempts smaller depository institutions from escrow requirements for higher-priced mortgages.
Originators of non-qualified mortgages are selling product in smaller batches and as whole loans. The reason: better execution than delivering them into MBS.
Volatility in the secondary market for non-QMs receded within two months but originations are still nowhere near pre-pandemic levels. Reason: lenders focusing on agency refis.
The fund could be modeled after the Hardest Hit Fund, providing funds to state housing finance agencies to help borrowers bring their mortgages current.
A survey of servicing executives by Fannie Mae found that the companies are having difficulties keeping up with forbearance requirements. Staffing capacity is also an issue.