Legislative Issues

Browse articles from all of our Newsletters related to Legislative Issues.

August 24, 2015 - Inside the CFPB

Consumer Groups Fight Limits to Oversight of Indirect Auto Finance

A number of consumer-oriented organizations are urging members of Congress to defeat H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act,” legislation they say would cripple the bureau’s ability to act against discriminatory auto lending practices. H.R. 1737, introduced this spring by Rep. Frank Guinta, R-NH, would require the CFPB to rescind its guidance from March 2013 regarding the fair lending risks associated with car dealer interest rate markups. The bill also would require the bureau to provide notice and take comments only for guidance related to auto lending through car dealers. Additionally, the legislation would make publicly available all information relied on by the CFPB, and redact any information exempt from disclosure under the Freedom of Information Act....

August 21, 2015 - Inside FHA/VA Lending

Around the Industry

FHA Begins Registration of Lenders to Prepare their Transition to the EAD Portal. Lender registration for the transition phase of the new Electronic Appraisal Delivery portal began on Aug. 18. Lenders may select any of the seven onboarding phases, which FHA has established to ensure that lenders have more time to work within the EAD portal to ensure that their systems, data flow and operational process meet portal requirements before the June 27, 2016, mandatory-use date. Although lenders may enter at any phase they choose, the FHA strongly encourages lenders to register for the earliest onboarding phase, and to do it as soon as possible. That would give them more time to get ready for the full transition, the agency said. The first phase begins on Oct. 15, 2015, with additional phases beginning each month and running through the first half of 2016. Information on the onboarding phases as well as ...

August 10, 2015 - Inside the CFPB

House Panel Passes Four CFPB-Related Measures

Late last month, the House Financial Services Committee passed a handful of industry-sought measures related to the CFPB, including H.R. 3192, the Homebuyers Assistance Act. The legislation would provide a hold harmless period until Feb. 1, 2016, for the TILA/RESPA Integrated Disclosure (TRID) rule that is slated to take effect Oct. 3, 2015. Attorney Richard Andreano, a partner in the mortgage banking unit at the Ballard Spahr law firm, said in a client note that prospects in the Senate, however, are somewhat murky. “An existing bill, S. 1711 (which is a companion bill to H.R. 2213), would provide for a TRID rule hold harmless period until Jan. 1, 2016,” he said. “The bill was introduced on July 7, 2015, and ...

August 7, 2015 - Inside Nonconforming Markets

News Briefs

Fitch Ratings updated its criteria for estimating losses on mortgages in non-agency mortgage-backed securities this week. The main change for jumbo MBS involves the treatment of retail originations by lenders that have not been reviewed by Fitch. Previously, retail originations from such lenders would not receive positive consideration in the calculation for the probability of default. The rating service will now apply the retail benefit to ... [Includes three briefs]

August 6, 2015 - Inside Mortgage Finance

HFSC Passes Safe Harbors for QMs, TRID Enforcement; Shelby’s Reg Relief Proposals Attached to Funding Bill

The House Financial Services Committee has passed a number of mortgage-related bills designed to ease lenders’ liabilities by simplifying rules, reducing complexity and compliance costs, while a streamlined regulatory relief package gained new momentum in the Senate. Late last week, the committee reported out the following bills: H.R. 1210, (Portfolio Lending and Mortgage Access Act); H.R. 1941 (Financial Institutions Examination Fairness and Reform Act); and H.R. 3192 (Homebuyers Assistance Act). H.R. 1210 would modify...

August 6, 2015 - Inside Mortgage Finance

Congress Expands Reporting for Mortgage Interest, Hoping to Raise $180 Million a Year

A highway funding bill signed by President Obama late last week included a provision aimed at collecting more taxes related to interest payments on mortgages. The mortgage industry noted that it won concessions on the provision, delaying the implementation date and limiting the amount of data to be collected. The brunt of the new revenue also looks as though it will be collected from borrowers. H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, included a seemingly simple provision regarding the reporting of mortgage interest on IRS Form 1098. Servicers use the form to report mortgage interest of $600 or more received during a year. The highway funding bill will require...

July 30, 2015 - Inside Mortgage Finance

House Moves to Expand QM Safe Harbor While Senate Backs Away From GSE Tax for Highways

The House Financial Services Committee this week marked up legislation to block pay raises for the top executives at Fannie Mae and Freddie Mac and to extend qualified-mortgage status to loans originated for an institution’s retained portfolio. H.R. 1210, the Portfolio Lending and Mortgage Access Act, introduced by Rep. Andy Barr, R-KY, would extend qualified-mortgage protection from litigation and enforcement actions for mortgages originated and retained in portfolio by depository institutions. “This would incentivize private-sector risk retention,” said Barr. Rep. John Carney, D-DE, said...

July 24, 2015 - Inside FHA/VA Lending

Around the Industry

HUD Re-Offers Single-Family Loans to Investors. Due to the required release of a Bidder Supplement for Single-Family Loan Sale 2015-1, the Department of Housing and Urban Development re-offered all pools in SFLS 2015-1 on July 16. The offering included National Pools and Neighborhood Stabilization Outcome Pools (NSOs). The NSOs include one pool for which only nonprofit bidders or local-government agencies were allowed to bid. Such pools consist of loans in areas that have been hard hit with foreclosures or that have experienced an economic downturn. The final NSO pool areas include Chicago; Newark, NJ; Camden, NJ; Nassau and Suffolk Counties, NY; Baltimore; and Philadelphia. The NSO pool for Detroit was earmarked for nonprofit and local-government bidders. Sellers Bring $1.53 Billion Servicing Offering to Market. Denver-based Phoenix Capital is in the market with a ...

July 23, 2015 - Inside Mortgage Finance

Dodd-Frank Mortgage Reforms Likely to Remain, GSE Reform a Glaring Gap Left by Act, Critics Say

Republican congressional leadership commemorated the fifth anniversary of the Dodd-Frank Act this week by bashing the massive legislation. But there was not a single mention of making any changes to the mortgage-related provisions in the law. However, Republican leaders of the House Financial Services Committee and the Senate Banking, Housing and Urban Affairs Committee demonstrated varying degrees of optimism about enacting broader changes to the controversial law. During a Dodd-Frank discussion forum early this week at the American Enterprise Institute, HFSC Chairman Jeb Hensarling, R-TX, in response to a question about the political prospects for reform, said...

July 17, 2015 - Inside MBS & ABS

Fed Chief Yellen Gives Qualified Signals About a Possible Rate Hike, Contrarians Dismiss Prospects

In the eyes of some Federal Reserve watchers, Fed chief Janet Yellen has become a master of making every public appearance a bit of a Rorschach test, giving fans and critics alike just enough of what they want to hear to reinforce their pre-existing viewpoints. Her semi-annual Humphrey-Hawkins testimony on Fed monetary policy before Congress this week was another prime example of this, with Wall Street types hopeful of a rise in interest rates sometime later this year, and contrarians increasingly unconvinced and dismissive. For instance, labor markets are showing...

July 17, 2015 - Inside MBS & ABS

Prospects for Housing Finance Reform Depend On White House Involvement, Lawmakers Say

A bipartisan pair of lawmakers from the House of Representatives found fault with the Obama administration this week for not making housing finance and reform of the government-sponsored enterprises a priority. Failing that, they’re not certain there would be enough support from both sides of the aisle to get a comprehensive bill pushed through the pipeline and signed by the president. “I don’t think the White House has sent a positive signal about participating in this process,” said Rep. Randy Neugebauer, R-TX, during a housing finance reform discussion in Washington, DC, this week sponsored by the Bipartisan Policy Center. “It’s such a big lift. You need to make sure that if you’re going down that road, that you have the opportunity to accomplish something.” His colleague, Rep. John Delaney, D-MD, agreed...


During the first half of 2015 all residential lenders originated a better-than-expected $805 billion of home mortgages, according to Inside Mortgage Finance. What do you expect in the second half?

Just as good. We like what we’re seeing.
Better. Applications are strong.
Worse. We’re worried about rates, seasonality.
A lot worse. The fourth quarter could be a killer.

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