Between regulatory changes and the disappearance of former mortgage mainstays, the future market is looking very different from an origination standpoint, National Mortgage News reported last week.
Big players such as Bank of America and Ally Financial are paring down their business by cutting correspondent channels and other operations, the report notes, in light of heightened regulatory examination, a “dismal” housing market and bond investors’ lawsuits. Subprime lenders are all but gone.
Who stands to gain? Smaller lenders, according to the NMN report.
“Now some smaller competitors are stepping into that void and expanding, selling loans directly to the government-sponsored enterprises and even considering retaining the servicing of the loans they originate,” the article says.
Read the rest of the article at Reverse Mortgage Daily
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