The CFPB likely will propose revisions to QM standards in May. Feedback from non-agency participants could be minimized as the market for non-QMs collapsed recently.
Redwood MBS could be downgraded due to stop-advance feature; Moody’s assesses Finance of America Mortgage; non-QM lender PCMA signs lease for new headquarters.
The two-year loans carry a 100% guarantee from the Small Business Administration and are fully forgivable when used by employers to keep workers on payroll.
Some of the $659 billion of loans originated through the Paycheck Protection Program are eligible for sale in the secondary market, but it remains to be seen whether the loans will make it into ABS.
Banks increased reserves for loans held in portfolio during the first quarter on implementation of new accounting standards. Many delayed the impact of CECL on regulatory capital.
The share of first-time homebuyers leaning on downpayment assistance for mortgages increased in 2019, according to a survey by the National Association of Realtors.