Dodd-Frank Act

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

December 11, 2014 - Inside Mortgage Finance

CFPB’s HMDA Rulemaking to Exacerbate Fair Lending Enforcement Environment

If mortgage lenders thought fair lending compliance was tough now, the Consumer Financial Protection Bureau’s pending Home Mortgage Disclosure Act rulemaking may well turn enforcement into a hornet’s nest in the very near future, according to one top attorney. “The data to be reported under the CFPB’s proposal is likely to inflame the current fair lending regulatory environment,” said Warren Traiger, counsel at the BuckleySandler law firm, during a webinar this week sponsored by Inside Mortgage Finance. “The Dodd-Frank Act itself specified...


December 11, 2014 - Inside Mortgage Finance

Treasury Calls for Servicing Reforms Beyond Capital Requirements, Including Changes to Compensation

The migration of mortgage servicing rights from “more tightly to less tightly regulated parts of the financial system” should be addressed by regulators, according to the Treasury Department’s Office of Financial Research. The OFR, which was created by the Dodd-Frank Act to serve the Financial Stability Oversight Council, said Basel capital requirements have created incentives for banks to sell MSRs to nonbanks. In its annual report, the OFR cautioned that nonbanks aren’t as well regulated as banks. “Mortgage servicing activity and the accompanying risks appear...


December 8, 2014 - Inside the CFPB

Results of OIG Audits of CFPB Expected Sometime This Month

The most recent work plan issued by the CFPB's Office of Inspector General indicates the results of a handful of audits are expected to be completed sometime during the fourth quarter, indicating that either they will be released within the next few months or held over until sometime after the start of 2015. One such review has to do with a joint evaluation of coordination between the CFPB and other regulatory agencies. The inspectors general of the Federal Reserve, the Federal Deposit Insurance Corp., the National Credit Union Administration, and the Department of the Treasury are conducting “an evaluation of the coordination between the CFPB and other regulatory agencies with respect to conducting supervisory activities,” said the OIG’s work plan. ...


December 5, 2014 - Inside FHA Lending

FHA to Share in Landmark BofA Settlement

The FHA and Ginnie Mae will share in the record-setting $16.7 billion settlement between Bank of America, the Department of Justice and certain other federal agencies and six states to resolve claims related to mortgage fraud and toxic mortgage-backed securities. The FHA will receive approximately $800 million and an undisclosed amount for consumer relief from BofA. The bank was accused of falsely certifying poorly underwritten loans for FHA insurance, resulting in huge losses for the agency. It is unclear how much Ginnie Mae’s share would be from the settlement. “As a direct endorser of FHA-insured loans, Bank of America performs a critical role in home lending,” said U.S. Attorney Loretta Lynch for the Eastern District of New York during the announcement of the global settlement in August. “In obtaining a payment of $800 million and sweeping relief for troubled homeowners, we have not ...


December 5, 2014 - Inside Nonconforming Markets

GSE Exemption from Risk Retention a Concern

Proponents of the non-agency market are concerned that the final rule recently issued by federal regulators setting risk-retention requirements for certain securitized mortgages includes an exemption for Fannie Mae and Freddie Mac. Beginning in late 2015, risk-retention requirements for residential mortgages will apply to newly issued non-agency mortgage-backed securities collateralized by loans that don’t meet standards for qualified mortgages. Issuers or lenders contributing to ...


December 4, 2014 - Inside Mortgage Finance

Joint Agency Final Rule on Minimum Requirements For Appraisal Management Companies Coming Soon

The multi-agency final rule implementing the Dodd-Frank Act appraisal-related amendments to the Financial Institutions Reform, Recovery, and Enforcement Act is expected sometime this month, according to the Consumer Financial Protection Bureau’s semi-annual regulatory agenda. The amendments made by Dodd-Frank to FIRREA require new minimum requirements to be applied by states in the registration, reporting and supervision of appraisal management companies (AMCs). They further require implementing regulations for new quality control standards for automated valuation models (AVMs) “designed to ensure a high level of confidence in the estimates produced by the valuation models.” The pending regulations also are...


November 26, 2014 - Inside MBS & ABS

Auto Loan ABS Issuers Will Likely be Subject to New Risk-Retention Requirements, Moody’s Says

The odds are stacked against auto loan ABS issuers being able to significantly lower the amount of credit risk they have to retain in securitizations under the recently adopted risk-retention rule. That’s mostly because of the strict underwriting criteria for underlying loans to qualify for the exemption from the requirement, according to a new ABS research report from Moody’s Investors Service. “Under the final risk-retention rule of the Dodd-Frank Act, auto loan ABS issuers can reduce the financial interest they must retain in their transactions through a qualifying automobile loan (QAL) exemption,” explained report authors Jeffrey Hibbs, assistant vice president, and Henry Chen, an associate analyst. Issuers can put...[Includes one data chart]


November 26, 2014 - Inside Mortgage Finance

Large Servicers Oppose Latest Proposal to Draft Overlay of State Laws for Foreclosures

The Uniform Law Commission’s latest proposal for a model state act that would regulate foreclosure practices as part of an overlay on current state laws is deeply flawed, according to large servicers represented by the Consumer Mortgage Coalition. In a comment letter submitted to the ULC’s Home Foreclosure Procedures Act Committee last week, Anne Canfield, executive director of the CMC, said the draft HFPA could prompt foreclosure delays and would create new assignee liability. The ULC’s committee on the proposed foreclosure law has been working...


November 10, 2014 - Inside the CFPB

Empowered GOP Likely to Raise Pressure on CFPB Come January

The consensus among political observers is that last week’s big Republican wave on Election Day will result in a lot more political bluster from critics of the CFPB on Capitol Hill. However, it’s unlikely to have enough short-term intensity or long-term staying power to effect any big changes that could get past the veto pen of a strongly supportive President Barack Obama. “While there may be a push for the elimination of the CFPB, such a change is highly unlikely given the [Obama] administration’s support for the bureau,” the American Bankers Association said in a post-election analysis. “Expect increased scrutiny in the Senate on the CFPB’s proposals and a continued push to change the structure of the CFPB from a ...


November 7, 2014 - Inside FHA Lending

HUD Rejects CFPB’s QM Cure Provision

The Department of Housing and Urban Development will not take on the new points-and-fees cure provision for qualified mortgages adopted by the Consumer Financial Protection Bureau. The agency is concerned that lenders might inadvertently violate the FHA’s statutory 3.5 percent downpayment requirement. HUD adopted other changes in the CFPB’s revised final rule on ability to repay and qualified mortgages (ATR/QM) to maintain consistency but saw no need for any further ability to cure points-and-fees errors. Reimbursement of any excess points and fees to the borrower could take away from the mandatory 3.5 percent downpayment and render the loan ineligible for FHA insurance, the agency explained in a notice published in the Nov. 3 Federal Register. HUD said it would provide lender guidance under its own QM rule on ...


November 6, 2014 - Inside Mortgage Finance

Lessons Learned From Enforcement Trends Help Lenders Cope With New UDAAP Environment

As mortgage lenders continue to feel their way around the world of unfair, deceptive or abusive acts or practices (UDAAP) as defined by the Dodd-Frank Act and the Consumer Financial Protection Bureau, there is much they can learn from a close examination of recent enforcement actions. During a webinar this week sponsored by Inside Mortgage Finance, Mercedes Tunstall, a partner with Pillsbury Winthrop Shaw Pittman, said CFPB consent orders show that the bureau is watching telemarketing practices very closely. The CFPB is...


Poll

What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

vote to see results
Housing Pulse