Browse articles from all of our Newsletters related to Dodd-Frank Act.
February 4, 2016 - Inside Mortgage Finance
Republicans on the House Financial Services Committee this week pushed through their version of fiscal year 2017 budget views and estimates (BVE), taking aim at government-sponsored enterprises Fannie Mae and Freddie Mac, as well as FHA and the Consumer Financial Protection Bureau. The minority Democrats tried to amend the broader GOP package 10 times, but each amendment went down to defeat on a party-line basis. There were no Republican amendments offered. On the issue of Fannie, Freddie and housing finance reform, Republicans on the committee said...
January 29, 2016 - Inside FHA/VA Lending
The Department of Veterans Affairs has issued guidance to help VA lenders understand better the agencys interim final rule on a borrowers ability to repay and qualified mortgages. The guidance was published in a frequently asked questions (FAQs) format to clarify and explain both the VAs ATR and QM standards. The VA interim final rule became effective on May 9, 2014, the date it was published in the Federal Register. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires residential mortgage lenders to make a reasonable and good faith determination that the consumer has a reasonable ability to repay the loan according to its terms. The statute directed the Consumer Financial Protection Bureau to develop and implement an ATR/QM rule. Under the CFPBs final rule, a qualified mortgage is a category of loans that have certain, more stable features that ...
January 25, 2016 - Inside the CFPB
On the three-year anniversary of the adoption of the CFPBs final loan originator compensation rule, the Community Home Lenders Association wrote the bureau, renewing its call for ending the exemption bank loan originators enjoy from passing a mortgage competency test. The Jan. 20, 2013, LO comp rule implemented Section 1402(b)(1)(A) of the Dodd-Frank Act, which requires that all mortgage loan originators be qualified. In the final rule, the CFPB elected not to impose a Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) test requirement on bank loan originators or impose other related SAFE Act requirements that are imposed on non-bank LOs. Subsequently, the CHLA has called for higher bank loan originator qualifications standards, including a mandatory universal requirement ...
January 22, 2016 - Inside MBS & ABS
About a month after risk-retention requirements took effect for newly issued non-agency MBS, industry participants continue to work on complying with the standards set by the Dodd-Frank Act. Non-agency MBS issued on Dec. 24, 2015, and beyond are subject to risk-retention standards. The standards will apply to other MBS and ABS asset types for deals issued on and after Dec. 24 of this year. The first jumbo MBS subject to risk-retention requirements is scheduled...
January 15, 2016 - Inside FHA/VA Lending
Radian Guaranty became the first among seven private mortgage insurers to declare compliance with the regulatory capital standards under the Private Mortgage Insurer Eligibility Requirements (PMIERs). Radian met its PMIERs goals after receiving $325 million in cash and marketable securities from its parent Radian Group in exchange for a surplus note. In addition, the parent firm contributed $50 million to an exclusive affiliated reinsurer of Radian Guaranty. Radian Group expects the capital cushion to increase based in part on expected future financial performance at its MI subsidiary. Monies from other sources, including a profit commission of about $8 million based on performance to date, and $8.5 million in prepaid supplemental ceding commission also contributed to the MIs capital. Hence, Radian Guaranty is not expected to require any additional capital contributions in order to ...
January 11, 2016 - Inside the CFPB
The Government Accountability Office heard a lot of industry talk about the negative effects of CFPB regulations on mortgage lending during its review of the impact of the Dodd-Frank Act, but found little data from regulators to support such claims so far, according to a new report issued by the government watchdog. The results of surveys conducted by regulators, industry associations, and academics on the impact of the Dodd-Frank Act on small banks suggest that there have been moderate to minimal initial reductions in the availability of credit among those responding to the various surveys, and regulatory data to date have not confirmed a negative impact on mortgage lending, said the GAO. Some community bank, credit union, and industry association ...
January 11, 2016 - Inside the CFPB
The CFPBs ability-to-repay (ATR) rule with its qualified mortgage standard did not materially affect the mortgage market in 2014, according to a recent analysis by two economists at the Federal Reserve based on industry data provided under the Home Mortgage Disclosure Act. Following up on an article published simultaneously with the 2014 HMDA data release in which they found little indication that the new rules had a significant effect on lending in 2014, Fed economists Neil Bhutta and Daniel Ringo extended that analysis by conducting sharper tests around the date of enactment, and around lender-size and loan-pricing thresholds, where treatment of loans under the new rules varies. They found that lenders responded to the ATR and QM rules, particularly by ...
January 1, 2016 - Inside Nonconforming Markets
Risk-retention requirements established by the Dodd-Frank Act for certain non-agency mortgage-backed securities took effect at the end of 2015. Industry analysts suggest that the requirements will have minimal impact on industry participants current practices. Risk-retention rules will not affect overall residential MBS issuance levels because qualified mortgage issuers will be exempt from risk-retention rules, and non-QM issuers already retain risk, according to analysts at Moodys Investors Service ...
January 1, 2016 - Inside FHA/VA Lending
VA Servicer Reminders. The new maximum allowable foreclosure timeframes published in the Federal Register on Dec. 4, 2015, will be effective for all loan terminations completed on or after Jan. 3, 2016. In addition, the new Net Value percentage (15.95 percent) took effect on Dec. 23, 2015. All Notices of Value issued on or after Dec. 23, must be calculated using the new percentage. Meanwhile, pre-approval requests to deviate from a regulation must be submitted through VALERI (VA Loan Electronic Reporting Interface), the agencys loan administration system. VA does not grant pre-approval on claim expenses or for additional time to foreclose. These items must be appealed ...
January 1, 2016 - Inside FHA/VA Lending
Joint civil fraud initiatives have resulted in $558.5 million in recoveries and receivables to the Department of Housing and Urban Development in FY 2015, according to the HUD inspector generals semiannual report to Congress. The amount includes civil settlements of $212.5 million from First Tennessee Bank, $29.6 million from Reverse Mortgage Solutions, and $1.8 million from three other settlements. The settlements resolved enforcement actions brought by the Department of Justice on behalf of HUD in pursuit of civil remedies under a variety of statutes, including the False Claims Act, Program Fraud Civil Remedies Act, and the Financial Institutions Reform, Recovery and Enforcement Act. Recoveries and receivables for other entities during the reporting period April 1 to Sept. 30, 2015 totaled $86.9 million and $268.2 million for the entire fiscal year. Some of the payments were made to the ...
A lot has been written lately regarding loan closing delays tied to the new TRID rule. Whats been the average delay at your lending shop, if at all? (Report in business days, not calendar.)
- TRID has caused no delays whatsoever because we were prepared.
- 1 to 4 days.
- 5 to 10 days.
- 11 to 15 days. Its been a nightmare.
- Were too embarrassed to tell you.
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