Items Tagged with 'risk retention'


  • Fannie Mae to list risk-sharing bonds on Irish Stock Exchange

    Will hold “sufficient” credit risk to ensure compliance with European Union rules
    European investors seeking to buy into the U.S. mortgage market will now have that opportunity, after Fannie Mae announced that it plans to list all of its outstanding risk-sharing mortgage bonds on the Irish Stock Exchange.
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  • Is risk retention the least intrusive regulation?

    Thoughts on Barney Frank's latest speech
    The private sector should be free to innovate and the public sector should set rules that prevent the negative externalities with minimum impedance of the private sector. In my opinion, don’t fix what (the market) didn’t break.
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  • NRMLA Seeks Qualified Status for Non-HECMs

    In comments submitted to the Federal Reserve board, NRMLA called for specific criteria for reverse mortgages in meeting the definition of a qualified mortgage under the risk retention Ability to Repay - Qualified Mortgage rule.   Under the current draft of the rule FHA-insured HECM loans would be defined as a "qualified mortgage" and therefore exempt from the risk retention rules.  However, reverse mortgages that are not FHA HECMs are not specifically included and could be subject to the requirement of sponsors to retain a 5% credit risk of the assets underlying securities they issue.  The letter points out
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  • NAMB Issues Call to Action on QRM

    The National Association of Mortgage Professionals (NAMB) has issued a call to action to members regarding the Qualified Residential Mortgage (QRM) standard proposed rule currently in the public comment period.   In order to qualify as a QRM under the proposed rules, requirements include having a minimum of 20% down payment, cannot be 30 days late on any debt obligation, and have debt to income ratios below 28/36.  NAMB government affairs chairman Mike Anderson warns that if the rule proceeds as written, it could result in non-QRM mortgage interest rates increasing by at least 2%.  In the sample letter
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