While the industry said goodbye to 2014, it may not have said goodbye to rising home prices or loosening credit standards. Here are Guardian Mortgage's predictions for what will stay, what will leave and what will change in 2015.
With non-QM comes more risk. There is no safe harbor and holding them on portfolio could mean boosting capital reserves. Nonbank lenders, meanwhile, need to find an investor willing to buy non-QM loans.
The CFPB left the grace period open-ended and most in the industry interpreted that to mean that it will last throughout the rest of 2015, at least. Unfortunately, as welcome as that grace period is, TRID remains a costly and complicated fix that has enormous implications for the whole industry..
“Bad letters damage the brand,” Katherine Porter says. “There’s a contagion effect of this. I think bad letters are unjust. They disproportionately harm the borrowers we need to help the most.” Read More