Dodd-Frank Act

Browse articles from all of our Newsletters related to Dodd-Frank Act.

May 26, 2016 - Inside Mortgage Finance

With Servicing Costs Steadily Rising, Is it Time to Think The Unthinkable: A Hike in GSE Servicing Compensation?

Although mortgage delinquency rates are once again at pre-crash levels, servicing costs continue to rise, leading some factions of the industry to ask whether Fannie Mae and Freddie Mac should increase the standard 25 basis point fee they pay to their servicers. The issue of higher servicing compensation was raised by an individual lender during the audience Q&A at a panel featuring the top single-family executives of the two government-sponsored enterprises at last week’s secondary market conference sponsored by the Mortgage Bankers Association. Both noted that servicing has changed significantly since the housing crisis, and that the Federal Housing Finance Agency has directed them to review servicing compensation. Subsequent interviews conducted by Inside Mortgage Finance revealed...


May 20, 2016 - Inside MBS & ABS

Chimera Sees Promise in Risk-Retention Requirements For Non-Agency MBS, Projects Returns in Double Digits

Risk-retention requirements included in the Dodd-Frank Act that met strong opposition from industry participants may turn out to be a profit source for some real estate investment trusts. Non-agency MBS have been subject to risk-retention requirements since the end of 2015, while the rules go into effect at the end of this year for commercial MBS and other asset classes. “I believe...


May 19, 2016 - Inside Mortgage Finance

As Lenders Await Son of TRID, CFPB Tries to Give More Clarity With Annotated LE and CD Forms

The Consumer Financial Protection Bureau last week issued annotated versions of the loan estimate and closing disclosure forms that provide citations to the disclosure provisions in Chapter 2 of the Truth in Lending Act referenced in the integrated disclosure rule. However, neither of the two documents appear to go anywhere near providing the kind of clarity the industry hopes to get from the agency’s recently announced new TRID rulemaking. In fact, the documents are more notable for what they do not provide than for what they do. “This document does not include...


May 16, 2016 - Inside the CFPB

Also in Brief: Capitol Hill Roundup

Hensarling Slams CFPB, Vows Big Changes to Dodd-Frank, the Bureau. During a speech last week at the National Center for Policy Analysis, Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, pledged to push a package of pro-growth, pro-consumer reforms as an alternative to the Dodd-Frank Act, including clipping the wings of the CFPB. “At almost every opportunity, the bureau abuses and exceeds its statutory authority, which is already immense,” said the congressman. “The bureau operates with such secrecy, unaccountability, and bureaucratic tyranny it would make a Soviet Commissar blush.” As the committee moves forward with its plans for financial reform, Hensarling promised the Republicans will have ...


May 12, 2016 - Inside Mortgage Finance

Trade Groups Seek Action from Congress on the Future of Appraisal Regulation, Including State Issues, Competition

Trade groups involved in home sales and appraisal issues are calling for a hearing in Congress regarding the future of appraisal regulation. The American Bankers Association, the Appraisal Foundation, the Appraisal Institute, the National Association of Home Builders and the National Association of Realtors made the requests in letters to Congress. …


May 2, 2016 - Inside the CFPB

Other News in Brief

Mortgage Warehouse Volume at Horizon Bancorp Declines in First Quarter, TRID Remains an Issue. Horizon Bancorp announced recently that its mortgage warehouse lending efforts were down in the first quarter of 2016. The bank had $119.88 million in mortgage warehouse loans on its balance sheet at the end of the first quarter of 2016, down 17.2 percent from the previous quarter and down 33.0 percent from the first quarter of 2015.... Flagstar Boosts Originations and Income in 1Q16, Is Comfortable with TRID. Flagstar Bancorp reported an increase in originations and net income for the first quarter of 2016 with company executives noting that the bank is comfortable with the TRID mortgage disclosure requirements...


May 2, 2016 - Inside the CFPB

Mortgage-Related Exams Rose 70 Percent Last Year, CFPB Reveals

It should come as no surprise to mortgage originators and servicers that the CFPB has significantly ramped up its examination activity of their operations over the last year. Data provided exclusively to Inside the CFPB from the bureau per a Freedom of Information Act request reveal there was a 70 percent increase in mortgage-related exams in 2015 from the prior year. As the accompanying chart illustrates, nonbanks have been having an even more active degree of scrutiny from the bureau than have depository institutions. Nonbank originators have seen an 85.7 percent increase in exam activity year over year, versus depositories, which have seen a rise of “only” 42.9 percent during that period. And it is even worse for nonbank servicers. ...


May 2, 2016 - Inside the CFPB

CHLA Calls for Balanced Treatment Of Nonbank Mortgage Lenders

In the continuing wake of industry concerns about the TRID disclosure rule and worries about large retroactive fines, the Community Home Lenders Association says the CFPB should provide more balanced regulatory and enforcement policies toward smaller nonbank mortgage lenders and improve compliance guidance and due process. Asserting that nonbank mortgage lenders, including community-based lenders, have recently “led the way” in providing access to mortgage credit and providing more personalized loan servicing, the CHLA said “any regulatory policies that have the effect of imposing a disproportionate compliance burden on smaller lender/servicers can accelerate industry consolidation – which in turn can result in fewer consumer choices and less personalized service.” The trade group had three main recommendations for the bureau, the first of ...


April 29, 2016 - Inside MBS & ABS

Research From Treasury Suggests Dodd-Frank Act Handling of Credit Rating Issues Far from Perfect

The alternatives to credit ratings mandated by the Dodd-Frank Act aimed to address contributors to the financial crisis have their own challenges, according to a new report from the Treasury Department’s Office of Financial Research. John Soroushian, a research analyst for policy studies at the OFR, noted that before the financial crisis, rating services had an incentive to inflate ratings for MBS, ABS and other investments to expand their business. He said rating services were “key enablers” in the creation of MBS and collateralized-debt obligations. “Without ratings, it would have been...


April 15, 2016 - Inside MBS & ABS

Politicos Spar Over Dodd-Frank’s Impact on Market Liquidity; Regulators Suggest Market is Still Evolving

Republican and Democrat members of the Senate Banking, Housing and Urban Affairs Committee were at odds during a hearing this week over whether there is much of a liquidity problem in the fixed-income markets today, and if so, to what extent the Dodd-Frank Act or Federal Reserve monetary policy may be responsible. Federal regulators, on the other hand, told the lawmakers that markets are functioning well enough and still evolving in a new, post-crisis environment. They suggested the thing to worry about is how much liquidity there will be in five or 10 years and how it will function. Sen. Dean Heller, R-NV, asked...


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