Capital markets

Experts review scenarios that could cause Federal Reserve chairman Jerome Powell to reverse course on a decision this week that left some lenders breathing a sigh of relief.

The Fed chair said actively selling securities will become necessary as it looks to reduce its balance sheet, but not anytime soon.

Some stakeholders in the mortgage industry are concerned about the late 2023 deadline, but the government bond insurer said most are already prepared, and it'll work with those who aren't.

The option can be efficient but companies have to figure out who will handle the additional property data collection, panelists at the Digital Mortgage Conference said.

The post had been vacant on a full-time basis following Ryan Zanin's departure in May.

Waivers boomed during the pandemic's refi wave and the recent automation of desktop appraisals have provided additional flexibilities, but their applications are limited in the current market.

However, company executives said the treatment of mortgage servicing rights under the new rules going into effect late next year looks likely to lead to some consolidation.

While one analysis finds that publicly traded nonbanks may not be materially affected — contrary to the concerns expressed by Ocwen — Community Home Lenders Association said it could hurt moderately sized lenders.

The servicer is evaluating alternatives in light of the new rule the government bond insurer will put in place next year.

BofA Securities Inc. predicts that single-family rental securitizations — which repackage a single loan tied to multiple properties — will fall to just $2 billion for the rest of 2022 as Federal Reserve rate hikes send shivers across the industry.