Articles by Jessica Guerin

Ginnie Mae reveals plans to stress-test nonbank lenders

Requests industry feedback on proposed methods and impact
In the last decade, Ginnie Mae has seen what it calls a “significant transformation” in the type of players that participate in the issuance of its mortgage-backed securities, with the bulk of transactions now being handled by nonbank lenders. To address the situation, Ginnie recently revealed plans to institute stress tests for major nonbank lenders that would assess their ability to perform under adverse conditions over a two-year period.
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Covius completes acquisition of massive chunk of Chronos Solutions' business

Divides new offerings into new company divisions for origination and capital markets/servicing
Covius Holdings, the technology solutions provider formerly known as LenderLive, just saw its business expand significantly with the completion of its acquisition of a sizable chunk of Chronos Solutions. On Monday, Covius announced that it had completed a deal first announced in June, and that it officially secured a capital investment from New Residential.
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CFPB moves to kill QM patch

Plans to level playing field by ending special treatment for GSEs
The CFPB revealed late Thursday that it plans to allow for the planned expiration of the QM patch in January 2021, noting that it may impose a brief extension “to facilitate a smooth and orderly transition.” Regardless, the QM patch appears to be nearing its end days. The bureau is seeking input on how to make this transition, and a number of industry players are already weighing in, stressing an urgent need to redefine a Qualified Mortgage. Click the headline to read more.
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Wages aren't keeping pace with home-price growth, and it's putting a dent in the housing market

Most U.S. markets out of reach for would-be homebuyers
A good real estate agent might tell you that the general rule of thumb when buying a home is to follow a price-to-income ratio of 2.6, meaning that if you can afford the price of the home on 2.6 years’ worth of household income, it can be considered affordable. But for homebuyers in most parts of the country, that 2.6 threshold is far out of reach, according to a recent study by Clever Real Estate.
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Reverse Mortgage Funding hires 2 new wholesale executives

Tim Griffin and Jaimee Scott join RMF’s wholesale and correspondent channel
Reverse Mortgage Funding is beefing up its wholesale team, announcing two new hires this week as Tim Griffin and Jaimee Scott join the team as account executives. In their new roles, both will be responsible for building and maintaining relationships with third-party originators for the HECM lender, which currently ranks No. 2 for wholesale activity.
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NY attorney general opposes Ditech sale, announces investigation into reverse mortgage business

Files brief with court claiming unlawful abuse of homeowners’ rights
As the battle over Ditech's bankruptcy and subsequent sale of its mortgage channels rages on, New York’s top legal officer is weighing in. Attorney General Letitia James filed a brief in court this week expressing her objection to Ditech’s bankruptcy plan on the grounds that it fails to protect borrowers in foreclosure. "Ditech's action is an illegal attempt to strip hundreds of homeowners of their legitimate claims," James said.
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Facebook to pay massive fines in settlement with FTC, SEC

Social media giant will cough up serious change for Cambridge Analytica debacle
It’s been a rough year for Facebook as the world’s largest social media platform has been forced to answer for its beach of its users’ privacy by allowing Cambridge Analytica to access personal information without consent. On Wednesday, the company was slapped with two separate fines for the debacle, agreeing to massive payouts to the Federal Trade Commission and the Securities Exchange Commission to make amends.
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More homeowners are tapping their equity to build accessory dwelling units

Is this an answer to the housing market's growing affordability problem?
America’s affordability problem continues to plague the housing market as wages aren’t keeping pace with rising home prices. The situation has given rise to an increase in multigenerational living, and according to homeownership investment company Unison, that has led some homeowners to tap into their equity in order to build accessory dwelling units for extended family members.
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Almost 40% of homes in the U.S. are mortgage-free

Zillow data reveals growing percentage of "free and clear" homes
The percentage of homes in the U.S. that are not financed by a mortgage is increasing, according to recent data from Zillow, which reveals that 37% of homes in 2017 were "free and clear." Zillow Economist Jeff Tucker said while changes in homeowner demographics are the driving factor behind this trend, it may not last long.
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HUD suspends down payment assistance rule change "until further notice"

Responds to judge's ruling in lawsuit with Native American tribe
The Department of Housing and Urban Development issued a notice to lenders Tuesday announcing the formal suspension of its rule change to down payment assistance guidelines. According to the bulletin, HUD is halting the effective date of an April mortgagee letter that provided clarification on down payment assistance rules for FHA loans, suspending the guidance "until further notice."
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