Mortgage Tech Demo Day

In a half-day format, technology companies will demo their platforms and answer questions. You can tune in for the whole demo day, or strategically drop in on sessions to learn about specific solutions.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How non-QM lenders can make the origination process easier for brokers

As a leader in non-QM loans, Angel Oak Mortgage Solutions offers the expertise and technology to make a broker's life easier - not harder.

CoronavirusMortgage

Calabria: No nonbank is too big to fail

FHFA director says impact of coronavirus on nonbanks is limited, so far

Over the weekend, David Stevens, the former head of the Federal Housing Administration and CEO of the Mortgage Bankers Association, wrote that the mortgage industry was “standing on the precipice” of widespread havoc due to a potential deluge of forbearance requests from borrowers.

Federal Housing Finance Agency Director Mark Calabria, meanwhile, told HousingWire Tuesday that he does not believe the industry is facing the calamity that Stevens and others are predicting, especially on the nonbank side.

“From looking at the financials, we’re not seeing any evidence that the stress in the nonbank side is systemic,” Calabria said in an interview. “What we’re seeing is a small minority of firms are experiencing stress, but the entire industry is not.”

According to Calabria, the number of forbearance requests at Fannie Mae and Freddie Mac are under 2% of the total portfolio, so far.

And according to Calabria, it’s because of the limited impact thus far that he doesn’t expect any nonbanks to shut down during this crisis. Rather, Calabria believes that some nonbanks should be selling off some of their assets to raise money so they can continue operating as is.

“We’re not at this point where we’re necessarily expecting anyone to fail,” Calabria said. “So, some of this really is a matter of people just not wanting to take a markdown price for their assets to raise liquidity. But we’re seeing players do that, which is appropriate.”

But if a nonbank does find itself on the “precipice,” the company shouldn’t expect the FHFA to come to their rescue.

“While I cannot speak for others, I certainly don’t consider any of these firms to be too big to fail,” Calabria said, when asked if the government would save a failing nonbank during this crisis.

Beyond that, Calabria said that the expectation that forbearance will be widespread is incorrect.

“Nobody that we’re talking to is seeing 25%, 30%, 40%, 50% take out (in forbearance requests),” Calabria said. “So, I don’t know where those estimates are coming from, because they just don’t match anything we’re seeing at all.”

Due to that, Calabria said that the issues in the mortgage business, specifically among nonbanks, are more limited than some are suggesting.

The potential for trouble, according to Calabria, is at companies that have a concentration of FHA loans, which have a higher percentage of forbearance requests than the GSEs do so far.

“If you’re a servicer and 100% of your business is Ginnie (Mae) and this goes on for six months, maybe I see you in the 25% range,” Calabria said, referring to a firm’s delinquent loan percentage.

For more of HousingWire’s interview with Mark Calabria, click here.

Most Popular Articles

Home prices are still rising, but relief for buyers is coming

Domestic home prices increased 2.3% from May to June, and 17.2% year-over-year, per CoreLogic. Twin Falls, Idaho had the highest annual increase at 40.2%.

Aug 03, 2021 By

Latest Articles

More households paid their rent and mortgage in Q2 2021

Fewer than five million households failed to make their rent or mortgage payments in the second quarter of 2021, down from Q1

Aug 04, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please