An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How servicers can access timely, accurate data insights

Learn how to navigate the challenges in today’s market – for example, the need for ongoing, on-demand access to near-real-time data and the ability to access those data insights in a timely and accurate manner.

Steve Murray on new brokerage models, CFPB crackdowns

Today’s HousingWire Daily features a discussion on the emergence of a new brokerage model and the validity behind the concerns against institutional investors.

Politics & MoneyMortgage

DBRS: Housing sales will pick up in 2015

Delinquencies, consumer complaints will continue to decline

DBRS is confident that despite a slow start to 2015, the year will be a solid one for home price recovery and a decline in mortgage delinquencies.

“DBRS believes that 2015 will be a year of further recovery as home prices continue to rebound,” said Kathleen Tillwitz, Managing Director of Operational Risk at DBRS, in a client note.

“Delinquency trends are expected to further decline as successful modification plans continue and foreclosure rates stay at their lowest levels in years. Short sales will remain a common loss mitigation practice; however, strict credit underwriting standards will continue to make finding borrowers that are approved for short sales more difficult,” Tillwitz said.

Stringent underwriting guidelines will continue to make it more difficult for borrowers with less than pristine credit and a substantial amount of reserves to obtain a mortgage in 2015.

“Even though DBRS has seen a few lenders implementing non-QM programs that allow for back-end ratios as high as 50% and FICO scores as low as 600, DBRS expects that larger lenders, who are still recovering from the massive fines they had to pay for making subprime loans, will not be originating anything but QM loans in 2015,” Tillwitz said. “Therefore, DBRS expects the availability of credit to continue to be constrained in 2015 for borrowers with blemished credit, resulting in another year of low organic growth for servicers.”

She added that the industry will see continued efforts by the Consumer Financial Protection Bureau to provide additional changes to ensure servicers are in compliance with the Mortgage Servicing Rules.

“DBRS views favorably the CFPB’s latest proposal for tighter controls, particularly as they relate to loss mitigation time frames during servicing transfer events, and believes that many consumer complaints will be eliminated as a result of the new rule,” Tillwitz said. 

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