Browse articles from all of our Newsletters related to Dodd-Frank Act.
November 13, 2015 - Inside FHA/VA Lending
Facing the possibility of a potential False Claims Act lawsuit, PHH Corp. is reconsidering its participation in the FHA mortgage insurance program. Though PHHs FHA segment represents only 3 percent of its mortgage volume over the past 12 months, the company will proceed cautiously as it evaluates the risk-adjusted return of FHA products and programs, said Glenn Messina, PHH president and chief executive.Ranked 50th among FHA lenders as of June 30, 2015, PHH expects more regulatory challenges in 2016 as well as rising compliance costs, said Messina during a third-quarter earnings call. In its latest quarterly filing, PHH disclosed receiving a subpoena from the inspector general of the Department of Housing and Urban Development for documents related to, among other things, FHA loan origination and underwriting practices. Like several other FHA lenders, PHH is ...
November 13, 2015 - Inside MBS & ABS
Federal regulators late last month rejected industry requests that swap agreements entered into by securitization vehicles be exempt from new capital and margin requirements. The three federal banking regulators, along with the Federal Housing Finance Agency, finalized a rule that requires covered swap entities to collect and post initial margin to counterparties that are swap entities or financial end users with material swaps exposure of $8 billion or more. The Structured Finance Industry Group had argued...
October 23, 2015 - Inside MBS & ABS
While federal regulators issued a final rule setting risk-retention requirements for a variety of MBS and ABS in December 2014, uncertainty regarding implementation persists. Industry participants are seeking guidance from regulators on a variety of issues, including the application of risk retention to asset classes that werent prevalent when the Dodd-Frank Act was drafted. Its absolutely astonishing how much becomes unclear when you actually sit down to build a risk-retention solution, Rick Jones, chair of finance and real estate groups at the Dechert law firm, said in a recent commentary. He noted...
October 22, 2015 - Inside Mortgage Finance
While lenders scramble to adapt to the Consumer Financial Protection Bureaus integrated disclosure rule, the agency has released its long-awaited final rule under the Home Mortgage Disclosure Act, ratcheting up the industrys data-reporting requirements and the potential for more fair lending enforcement activity. Among the most significant changes within the 800-page regulation, the final rule modifies which institutions are subject to Regulation C and adopts a uniform loan volume threshold for depository and non-depository institutions. It excludes from institutional coverage firms that did not originate at least 25 closed-end mortgage loans in each of the two preceding calendar years or at least 100 open-end lines of credit in such a time period. The new rule also changes...
October 22, 2015 - Inside Mortgage Finance
Mortgage bankers have been obsessed with regulation for the past five years, with good reason. Yet there was a sense at this weeks annual convention of the Mortgage Bankers Association that the industry is ready to move on. The natural turning point is that the Consumer Financial Protection Bureau has wrapped up the major pieces of its rulemaking mandates from the Dodd-Frank Act. The new final rule on Home Mortgage Disclosure Act reporting was released late last week, and the widely-dreaded integrated-disclosure requirements went into effect early this month. The so-called TRID still doesnt sit...
October 19, 2015 - Inside the CFPB
Bank of America Pulls the Plug on All Marketing Services Agreements. Bank of America, the third-largest residential retail lender in the U.S., has pulled the plug on all marketing services agreements it has with realty firms, sibling publication IMFnews reported last week. The bank confirmed the move to the newsletter, noting that it will discontinue all space rental agreement programs due to recent regulatory developments. It added: We expect our MSA agreements will conclude by Nov. 1, 2015, and we will terminate our lease agreements for space in accordance with their terms. While the decision to wind down our MSA and SRA programs was difficult, the end of these programs allows us to pursue different ways we might help builders ...
October 16, 2015 - Inside MBS & ABS
In an about face, the Basel Committee on Banking Supervision is preparing to allow for the use of credit ratings as a gauge for credit risk when setting bank capital requirements. If the move isnt adopted by U.S. regulators, industry participants suggest that domestic banks could be at a disadvantage. In a speech late last week, Stefan Ingves, chairman of the BCBS, acknowledged that the Basel committees December 2014 proposal to revise the standardized approach for credit risk wasnt well received. The response was both vigorous and clear: not many of you liked the proposals, he said. Ingves said...
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