Although some lenders love having a desk in a high-volume Realtor’s office, others loathe the practice. “I lost so much business to those places over the years,” he said. “I refused to pay $5,000 for a desk…”
Michael Fratantoni, chief economist at the Mortgage Bankers Association, said the GSEs’ back-end risk-sharing deals do not represent the type of reform most industry participants would like to see.
At mid-year 2015, Redwood’s subsidiary had $882 million of outstanding FHLB advances with a weighted average interest rate of 0.23 percent and a weighted average maturity of six years.
“Had the proposal been implemented, it could have had a chilling effect on FHA lending, to the detriment of the borrowers served by the FHA program,” according to lawyers at K&L Gates.