Originators haven’t had much time to lay back, slather on the sunscreen, and enjoy the sand beneath their toes this summer. The industry is busier than ever, and Mat Ishbia, president and CEO of United Wholesale Mortgage, shares his take on the news that’s making the biggest headlines this month.
As it stands, the QM patch allows all loans that go to Fannie and Freddie to be considered as QM—regardless of the DTI cap. It’s set to expire in 2021, and the CFPB has announced that it will not extend the patch beyond its current expiry date. They’re getting industry input on what happens next, and Ishbia says the options could be eliminating the 43% DTI altogether; allowing the use of bonus or commission income to qualify borrowers; or more borrowers would move to an FHA loan.
- The latest mortgage partnerships
The alliance between Quicken Loans and State Farm Insurance is the latest partnership in many that have people questioning how business will be impacted. Ishbia says they’re probably not all in the best interest of the consumer. Even though brokers can’t compete in terms of size and scale, news of these partnerships are a way to highlight the ways that they’re more beneficial to consumers than other models.
It wasn’t a surprise that the Fed lowered rates by 25bps. Even though it’s not very much, perception is everything, and consumers who have been holding out on both refis and purchases may perceive that these rates are too good to let pass.
See Matt discuss these points here.