A change by the GSEs in their minimum net worth requirements for new seller/servicers could disadvantage smaller nonbank players in the market, according to a new research note put out by Federal Financial Analytics, Washington.
FFA believes that higher net worth standards are not necessarily a problem for bank servicers, but could pose a “significant obstacle” for small nonbanks, depending on the capital threshold.
Late last week National Mortgage News reported on its website that Fannie Mae is telling newer seller/servicers that it will cap how much product they can sell to the GSE based on their net worth and other factors.
A Fannie spokesman
However, the stated net worth requirement remains at $2.5 million for seasoned seller/servicers that have been doing business with the GSEs for years.
Over the past 24 months nonbank lenders have been gaining market share in the lending and servicing sectors as megabanks the likes of Bank of America and Citigroup cut back.
FFA says that if Fannie or its regulator level the playing field to “better protect the GSEs” it could “derail a lot of recent happy plans from expanding nonbank servicers.”
