Rep. Fernand St Germain
The 14-term congressman was a dominating force as House Banking Committee chairman. But the savings and loan deregulation bearing his name tarnished his legislative record, and ethics allegations created a cloud of suspicion that led to his ouster.
Equity sharing, a fledgling concept that never managed to gain traction as a loss mitigation strategy during the housing crisis, is being reincarnated as an alternative to home equity loans and other second-lien mortgage products.
Even though refinance loans account for the majority of mortgage applications, the refi boom has long been over, and depressed origination volume will keep it that way for some time.
Image: iStock
Selling loans into the secondary market was a good strategy for housing finance agencies when rates were falling, but now they are said to be heading back to traditional bond financings to boost their balance sheets.
As warehouse providers try to build market share with new types of credit lines, allowing mortgage bankers to fund non-QM loans is the logical next step to staying competitive.
The proposed merger of the Home Loan banks in Seattle and Des Moines could spur massive consolidation among their sister banks, but only if the two show it's possible to overcome governance and other logistical challenges that have deterred similar deals.
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