Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

Why brokerages and mortgage lenders are rushing into JVs

Joint ventures are suddenly stitched into the fabric of a handful of national brokerages. But the idea of the joint venture collides with the loose, informal networks that color the American housing economy.

How to simplify the appraisal process for everyone in today’s hot market

While the world might be slowly getting back to normal, the housing boom is far from over. Appraisers need to make sure they have the right tools to manage the high demand.

Robert Dietz on why the single-family rental market is growing

In this episode of HousingWire Daily, NAHB's Robert Dietz explains why the marketshare of single-family rentals is growing despite strong homebuyer demand. He also discusses the NAHB’s latest Housing Market index.

Mortgage

Bruised but not broken: The state of today’s jumbo mortgage market

The XL-sized home loan is still being offered, although today it mostly winds up in bank portfolios

HW+ luxury home

Over the past week, news leaked out that Wells Fargo was putting tighter restrictions on its jumbo mortgage offerings. Although no official statement was put forth, the San Francisco-headquartered lender affirmed reports from the Wall Street Journal and Reuters that it would stop purchasing jumbo loans made by third-party mortgage bankers and would only refinance jumbo mortgages for customers with at least $250,000 in liquid assets in the bank.

Wells Fargo is the jumbo mortgage sector’s largest player, with $70 billion in volume last year. Of course, Wells Fargo is in a distinctive situation not shared by the other large banks – its balance sheet has been restricted to a $1.95 trillion cap since 2018 by the Federal Reserve as a result of its 2016 retail banking scandal. But its decision to pull back significantly from the space raised doubts on the product’s viability during the coronavirus-induced economic mayhem.

However, it appears the jumbo mortgage market still has a degree of resiliency. While no one denies the sector is facing difficulties, the product is still available from lenders that continue to appreciate its value.

Jumbo mortgages fall outside conforming loan restrictions because their high dollar figures exceed the maximum amount backed by Fannie Mae or Freddie Mac. Unlike conforming loans, jumbo mortgages are not securitized into the secondary market by the government-sponsored enterprises. Ginnie Mae securitizes these loans through its pass-through Ginnie Mae II mortgage-backed security, which is collateralized by multiple-issuer pools using loans from government programs including FHA and VA.

It should be noted that the new challenges facing this sector are not rooted in the underlying quality of the mortgages.

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