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Future of Mortgages, part 8: Rising Influence Of REITs

[Latest in our ‘Future of Mortgages’ series] A few years ago, REITs that bought and sold residential mortgage securities were very much off the radar screen. But times change and according to DealLogic, of the nine new REITs with IPOs planned this year, seven will invest in mortgage backed securities (often referred to on this

Biggest MBS Buyers. Simplifying Mortgage Disclosures.

There’s a new push to simplify mortgage disclosures following very recent January 2010 revisions that confused consumers more than ever. Here’s the Consumer Finance Protection Bureau’s latest on possibly combining two key mortgage disclosures: the Good Faith Estimate and Truth In Lending forms. The National Association of Realtors is urging lawmakers to rethink new risk

Does making banks keep a portion of loans they sell increase borrower costs?

I would suggest that few, if any, investors know their plan yet on complying with new regulations for keeping skin in the game on securities backed residential, commercial, credit-card, and other loans. On the residential side, my guess is that investors are taking their time looking production, underwriting, secondary/investor markets, and trying to see: a)

Does making banks keep a portion of loans they sell increase borrower costs?

I would suggest that few, if any, investors know their plan yet on complying with new regulations for keeping skin in the game on securities backed residential, commercial, credit-card, and other loans. On the residential side, my guess is that investors are taking their time looking production, underwriting, secondary/investor markets, and trying to see: a)

Linkage: Gatsby Mansion Demolished!

Today links include more consumer-focused interpretations of the Fed’s new risk retention rules for mortgage securitization. If you only read one link today, read Kid Dynamite on the topic. -Mansion Linked To ‘The Great Gatsby’ Demolished (Reuters via tip from DB!) -Onion or Reuters: Protecting Borrowers From Lenders (Kid Dynamite) -Leader of Big Mortgage Lender

Linkage: Robot journalist out-writes human

Writing daily market commentary can make one feel like a robot, but I’ll be so bold as to say a computer can’t do it better because market participants have too many differing agendas. That said, a robot writer just bested a sports writer. So to the financial writers linked below: watch your backs. Bleep, blorp.