Representatives from Rocket, Pennymac and the Mortgage Bankers Association called for further streamlining between federal mortgage programs and the government-sponsored enterprises.
With Democrats expected to gain majority in the House, and their odds of Senate control improving, congressional oversight of federal agencies may increase next year.
With stricter condo lending requirements at the government-sponsored enterprises, more projects may be considered non-warrantable, pushing more business to the non-agency side of the market.
Industry groups — including the Community Associations Institute, the Community Home Lenders of America and the National Association of Realtors — made their displeasure about the change to condo loan applications known in a recent joint letter to Federal Housing Finance Agency Director Bill Pulte.
SFA and other trade groups are seeking major changes to the re-proposed bank capital requirements. MBA raised concerns that non-agency MBS would receive more favorable capital treatment than GSE MBS.
Hedging could lessen the shock of prepayments for large banks holding mortgage servicing rights. There aren’t similar offsets, though, to mitigate a surge in defaults, according to research from the Fed.