Regulators changing focus to smaller industry players
written by Michael O'Connell
December 31, 2014 10:25AM
2014 was one for the books. The industry had to absorb the complications of complying with the Qualified Mortgage and Ability to Repay rules while dealing with much lower origination volume. The refi market officially went on life support, despite dropping interest rates, and the net cost to originate a loan was as high as $6,253 in the first quarter of the year, before falling to $5,074 in the second quarter.
Investors may finally be ready to take another look at residential mortgage-backed securities (RMBS), which would give lenders a pathway to liquidity and growth. At the same time, Fannie Mae and Freddie Mac have consolidated their securitization infrastructure. Taken together, this spells more stringent oversight of the loans that will be pooled for securitization in the near future. We sat down with John Hillman, CEO of Nationwide Title Clearing, to talk about what this may mean for the industry.
A sector-by-sector look at the housing industry from the perspective of those who know it best. We approached a distinguished panel of the leaders in their respective fields and asked a simple question: "What are you forecasting for your line of business in the coming year, and what are the factors that are going to shape your industry?"