Massachusetts Division of Banks – Survey
Dear Massachusetts Licensed Mortgage Broker/Lender:
In light of current economic conditions, the Massachusetts Division of Banks (Division) is actively monitoring the ongoing volatility in the mortgage market. As you may already know, various lenders and investors are no longer offering certain Non-Qualified mortgage products. Some have also tightened credit requirements and rate lock policies.
The Division is contacting you to determine if you are experiencing any issues and to get your feedback regarding the current mortgage origination environment. Please provide responses to the following:
- What is your most recent balance of unrestricted cash and cash equivalents? Please identify the applicable date for the balance given.- How does this compare to year end 2019?
- Have any of your warehouse lines and credit facilities been curtailed or closed since January 1, 2020?- If so how much of your credit capacity was reduced?- Please identify the applicable date for the balances given.
- Have you made any changes or eliminated any product lines, such as Non-QM, Reverse Mortgages, Jumbo loans? If so, please provide additional details.
- Are you currently experiencing or do you expect to experience any difficulties/interruptions in your origination operations (i.e. appraisals, processing, underwriting, call center staffing, etc.)? If so, please explain.
- Are there any other issues/challenges that you would like to share with the Division?
Please provide the requested information no later than 5:00 PM (EDT) on Tuesday, April 28, 2020. The information should be provided to Examiner Brendan Fitzgerald of the Mortgage Examination Unit at firstname.lastname@example.org.