Loan Think

Whether a deal involves a minority stake or a whole company carve-out, buyers and sellers should be aware of five issues that may pose transaction risk in the mortgage market.

Banks' lowering of origination fees and loosening of underwriting standards often foreshadow a downturn.

To paint nonbanks as a source of systemic risk, particularly given the track record of commercial banks in causing the 2008 subprime mortgage fiasco, seems absurd.

Debt-to-income doesn't perfectly measure a borrower's likelihood of making timely mortgage payments, but it shouldn't be replaced as the ability-to-repay rule evolves, it should be made more flexible instead.

The California Consumer Privacy Act is here, but many mortgage lenders still don't know what that means for them.

The mortgage securitization market can expect some changes, particularly in the specified pool and to-be-announced markets, alongside a continuation of trends in other areas.

Rooted in increased regulations and general customer backlash, there is a growing emphasis on collecting consent and ensuring privacy of customer data, especially following enactment of the California Consumer Privacy Act.

Foreclosure auction sales rates plummeted a year before home prices began dropping in 2006, and that was a red flag something was amiss.

The fact that the more operationally skilled nonbanks have come to specialize in government mortgages is hardly surprising if you assess the cost to originate and service these loans.

The FHFA’s attempt to move some of its balance sheet into the private sector could leave investors with greater liabilities than they were initially told.