Browse articles from all of our Newsletters related to Dodd-Frank Act.
October 16, 2014 - Inside Mortgage Finance
The Consumer Financial Protection Bureau last week proposed two narrow revisions to its complex mortgage origination disclosure rule, leaving the industry guessing what further changes could come as lenders gear up to implement a massive rule known as TRID: the Truth-in-Lending/Real Estate Settlement Procedures Act integrated disclosure. For most lenders, the most significant proposed change would relax the requirement that lenders provide a revised loan estimate on the same day that a consumers rate is locked. After considering industry feedback, CFPB staff concluded that such a short turnaround may be challenging for lenders that allow consumers to lock interest rates late in the day or after business hours. This could mean...
October 13, 2014 - Inside the CFPB
The CFPB issued a report earlier this month finding, more often than not, that owners of manufactured homes pay higher interest rates for their loans than borrowers whose homes were built onsite. In 2012, about 68 percent of all manufactured-housing purchase loans were considered higher-priced mortgage loans, compared with only 3 percent of site-built home loans, the CFPB said. Two out of three manufactured-home owners eligible for mortgages finance with more expensive personal property (chattel) loans instead. Thats good and bad. On the one hand, chattel loans have lower origination costs and quick closing timelines, as the bureau noted. But on the other hand, they also have significantly fewer consumer protections than mortgage loans, the bureau said. For example, only ...
October 3, 2014 - Inside MBS & ABS
Rating shopping is alive and well, Calvin Wong, chief credit officer at Morningstar Credit Ratings, said last week at the ABS East conference in Miami Beach. The Securities and Exchange Commission recently released a rule setting new requirements for the rating services, but Wong warned that the SEC hasnt done enough to address the issue. He said...
September 26, 2014 - Inside FHA Lending
An estimated $336 million out of a $614 million settlement that JPMorgan Chase agreed to pay for not complying with FHA requirements will go towards stabilizing the agencys ailing Mutual Mortgage Insurance Fund. On Feb. 4, 2014, the U.S. Attorneys Office for the Southern District of New York took over a whistleblower lawsuit and started an investigation of Chase on behalf of the government for alleged violations of the False Claims Act. The whistleblower or relator alleged that Chase, an approved FHA direct endorsement lender, had not followed FHA requirements when underwriting loans, causing the MMIF to incur significant losses when the borrowers defaulted on their loans. The U.S. Attorney filed suit against Chase based on the results of an audit conducted by HUDs Inspector General that looked into the banks underwriting and refinancing of FHA loans. The lawsuit alleged that ...
September 26, 2014 - Inside MBS & ABS
Investors are comfortable with broad swaths of the structured finance market and issuers are cautiously optimistic that regulators wont hinder activity too much going forward, according to attendees at the ABS East conference produced by Information Management Network this week in Miami Beach. Were in a pretty good spot right now in the market from a supply-demand perspective, said Bob Behal, a principal and co-head of ABS investments and commercial MBS investments at Vanguard Group. Almost 3,700 people had registered by the start of the conference, up slightly from around 3,500 people in 2013. Will Zak, a director at Barclays, said...
September 25, 2014 - Inside Mortgage Finance
Last week, the Senate passed legislation that would extend to state-licensed mortgage companies and the state regulatory agencies that oversee them the same kind of protections against waivers of privilege for information provided to the Consumer Financial Protection Bureau that was previously extended to federal agencies that supervise depository mortgage lenders. The measure, H.R. 5062, the Examination and Supervisory Privilege Parity Act of 2014, would require the CFPB to coordinate its supervisory activities with state agencies that license, supervise or examine those who offer consumer financial products or services. Currently under the Dodd-Frank Act, the bureau is only required to coordinate with federal and state banking regulators. The legislation also would provide...
September 18, 2014 - Inside Mortgage Finance
Among the many challenges associated with the Consumer Financial Protection Bureaus pending integrated disclosure rule is expanded legal liability for lenders based on the more threatening Truth in Lending Act, as opposed to the more palatable liability framework of the Real Estate Settlement Procedures Act. During a webinar sponsored last week by Inside Mortgage Finance, Rich Horn, a partner with the Dentons law firm and one of the architects of the rule while a regulator at the CFPB, noted there is no private right of action for integrated disclosures under RESPA. On the other hand, with TILA liability, there is...
September 12, 2014 - Inside MBS & ABS
A former analyst at Moodys Ratings has accused the credit rating agency of complicity in the financial meltdown in 2008, while a federal judge in Texas dismissed a government lawsuit against major banks involving non-agency MBS because it was filed too late. In his 2012 whistleblower lawsuit against Moodys, Ilya Kolchinsky, a former analyst with the firm, alleged that the rating service issued inflated ratings, often Aaa, to most risky residential MBS and collateralized debt obligations it reviewed from 2004 to 2007. The lawsuit was brought...
- NEW QUARTER RELEASED! GSE Private Mortgage Insurance Profile 3Q14
- GSE Seller Profile: 3Q14
- Mortgage Profitabiilty 2Q14
- Top Players 2Q14
- Agency Condo Market: 2013
Over the next six months we plan to hire this many more additional loan officers:
- 1 to 10 (We're being careful.)
- 11 to 30 (We're optimistic.)
- More than 30 (We're in a growth mode as the banks get out.)
- We're cutting back. (Are you nuts? It's ugly out there.)
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