The market has been mostly void of private label securities; securities that are not backed by Fannie, Freddie or Ginnie. There are some of these securities being created like the one recently done by Angel Oak of Atlanta. Angel Oak, having previously issued non-rated, mortgage-backed securities, is issuing its first rated transaction. A pool comprised of 529 non-QM loans valued…
In case you missed it (ICYMI), here is a link to an article recently published in MortgageOrb, an industry publication about lenders relaxing quality standards (shameless plug for you know who). Seriously, though, with rates rising and refi’s declining it is becoming more challenging for mortgage lenders to find new business. Due to decreasing homeownership rates, there are now calls…
Mortgage lenders are facing challenges in 2017 from rising interest rates, rising home prices and fewer refinances. These add up to result in less business. The big question is should lenders relax credit standards to help qualify more homebuyers for financing? Here we go again. Lenders were blamed for relaxed credit standards that led to the crash of ‘08. As…
House Rule 916, the Risk Management and Homeowner Stability Act, was recently introduced as bi-partisan legislation by Representatives Mark Sanford (R-SC) and Brad Sherman (D-CA). The bill is intended to restrict increases in agency Guaranty Fees to finance reforms to the secondary markets and prohibit use by Congress to fund other programs or cover budget shortfalls for such programs. “G-fees”,…
Fraud, misrepresentations, and loan defects are rising as refinances decline and purchase activity increases. According to The First American Financial Corporation, their Loan Application Defect Index rose 5.8% in January 2017, as compared to last year. This trend started in December of 2016. As the industry pushes to qualify more potential homebuyers in a rising rate environment, it experiences more problems…
A major result of the 2008 housing crash was that many people lost their homes. Very sad, but very true. This resulted in two things coming about: 1. These people needed a place to live 2. The market was flooded with unoccupied homes. All that was needed was a way to bring these two components together.…
