The CFPB released three policies this week to help lenders test innovative products. The bureau is also making joint efforts with at least seven state attorneys general to help improve coordination among regulators.
If the U.S. economy enters a recession, MBS and ABS are expected to perform relatively well, according to S&P. Subprime auto ABS, certain commercial MBS and CLOs are most at risk for downgrades.
“The QM patch expiration presents an opportunity for regulators to streamline certain rules to put the housing-finance sector on the best possible footing going forward,” Redwood said.
Industry executives expect the elevated jumbo refi activity to continue through the third quarter. “We definitely expect this refinance cycle to continue for the foreseeable future,” said Chris Abate, CEO of Redwood Trust.
The average age of first-time homebuyers is increasing and the buyers are less likely to be married, according to a recent analysis. The average age of buyers in 2017 was 34 compared with 30 in 2009.