Temporary prohibitions imposed by Pennsylvania could shutdown mortgage originations, the MBA warned. Meanwhile, the trade group noted that servicing standards set by Washington, DC, differ from federal ones.
On average, about half of the borrowers with non-QMs in mortgage-backed securities are self-employed, according to S&P Global Ratings. These borrowers are more at risk to miss payments on their mortgages than salaried borrowers.
Four of the top five originators of mortgages included in prime non-agency MBS can’t retain originations in portfolio and the market isn’t expected to rebound in the coming months. (Includes two data charts.)
Following in the footsteps of Wells, a handful of correspondent aggregators have suspended originations of jumbo mortgages. Underwriting standards for the loans also have tightened.