Regulations

Browse articles from all of our Newsletters related to Regulations.

April 24, 2015 - Inside Mortgage Trends

Regulators Address Mortgage Capital Issues

Federal regulators issued a document this month clarifying Basel III capital requirements that apply to banks. Among other issues, the Federal Deposit Insurance Corp., Federal Reserve and Office of the Comptroller of the Currency addressed the treatment of certain loan modifications and FHA loans. The capital rules took effect Jan. 1 for most banks, with a phase-in period for many aspects of the rules. The federal regulators said that when a mortgage isn’t in default and ...


April 24, 2015 - IMFnews

What We’re Hearing: Ocwen Decides to Keep its Ginnie MSRs / What Will a Borrower See When It Googles Ocwen’s Name? / Quicken Gets Hit in the Mouth With a Fastball / More Red Ink for Stewart Title

Grid Financial consultant Paul Hindman is a true believer in brokers as is Mat Ishbia of United Wholesale Mortgage.


April 24, 2015 - IMFnews

Seasoned Investors Push CFPB for Changes to its ‘Mini-Corr’ Guidance

On the issue of mini-correspondent lending, a group of secondary market investors has offered alternative criteria it recommends the CFPB use...


April 23, 2015 - IMFnews

DOJ Sues Quicken for FHA Underwriting Violations, Accuses Nonbank of Inflating Appraisals, More

DOJ cites an email written by a Quicken divisional vice president for underwriting who brags that the lender has a team that is “responsible to pushback on appraisers questioning their appraised values.”


April 23, 2015 - IMFnews

Short Takes: Some Lenders Think Mortgage Counseling is a Waste of Time / Credit Suisse Readies New Jumbo Deal / Originations Rise Slightly at BB&T / More MSR Deals / DocMagic Rolls out TRID Service

The top contributor to the new Credit Suisse jumbo deal is New Penn, which is controlled by MBS co-inventor Lew Ranieri.


April 23, 2015 - IMFnews

Treasury Responds to Sen. Grassley on PSPAs, Transparency of Conservatorship Decisions

Most of Sen. Grassley's inquiry focused on transparency and whether the president invoked executive privilege over some of the documents pertaining to the third amendment to the PSPAs...


April 23, 2015 - Inside Mortgage Finance

Federal Regulators Allow for ‘Patchwork’ of State Regulation for Appraisal Management Companies

A final rule issued this week by federal regulators setting standards for oversight of appraisal management companies goes against the concerns raised by many industry participants. The rule implements standards required by the Dodd-Frank Act, among other issues. The Consumer Mortgage Coalition, the National Association of Appraisal Management Companies and other industry participants had raised concerns about the rule proposed in April 2014. The proposal established minimum standards for AMCs – which are intermediaries between appraisers and lenders – and allowed states to establish requirements that go beyond the minimum standards. The final rule adopts...


April 23, 2015 - Inside Mortgage Finance

Real Estate Agents Frustrated with Appraisal Costs, Practices of Appraisal Management Companies

The costs for appraisals for home purchases have increased in recent years, according to some real estate agents responding to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, with blame being placed on appraisal management companies. “Many agents report that appraisal costs have risen and AMCs’ overhead may be responsible,” said Tom Popik, research director of Campbell Surveys. While lenders aren’t required...


April 23, 2015 - Inside Mortgage Finance

Green Tree Settles Servicing Allegations

Green Tree Servicing agreed to pay $63 million to settle allegations made by two federal agencies regarding its servicing practices. The settlement includes $48 million in consumer redress and a $15 million civil money penalty. Green Tree did not admit or deny the allegations. The Consumer Financial Protection Bureau and the Federal Trade Commission said...


April 23, 2015 - Inside Mortgage Finance

Man Bites Dog: Will Quicken’s Lawsuit Against the Feds Stem the Tide of FHA Charges Against Lenders?

Quicken Loans this week went where no lender in the mortgage industry has gone before: Suing the U.S. government for suggesting it’s been doing a crappy job of originating FHA loans. Its legal action not only caught most of the industry by surprise, but resulted in loud applause from the Mortgage Bankers Association and K&L Gates partner Larry Platt. A number of major lenders have paid...


April 23, 2015 - IMFnews

Altisource Earnings Plunge 90 Percent, Cost Cutting Ensues, Including Layoffs

Most of Altisource's business is tied to Ocwen, which is in the process of ridding its servicing portfolio of agency loans.


April 22, 2015 - IMFnews

Short Takes: A HUD Settlement for Green Tree? / After Losing LeBron, Quicken Owner Fears Little / More Regs for AMCs / Lenders You May Not Know: First Cal / Freddie Gets New Chief Risk Officer

It's always possible that Green Tree could turn around and sue HUD before HUD sues them, which is what Quicken Loans did.


April 22, 2015 - IMFnews

Realtors Continue the Drumbeat: Mortgage Credit is Too Restrictive

Then there was Bert Ely who noted: "In my opinion, American housing policy is leading the country down the same path that led to the last housing bubble..."


April 21, 2015 - IMFnews

Green Tree in $63 Million Settlement with the CFPB; Servicer Accused of Harassing Overdue Borrowers

First Ocwen, now Green Tree...


April 21, 2015 - IMFnews

Short Takes: MBA Backs Changes at CFPB / A Strong Quarter from MGIC / The Weekend the Lights Went out at FHA / S&P Puts Ocwen on Watch List / Executive Bolts Ocwen for Green River

The MBA is backing changes to how the CFPB functions...


April 21, 2015 - IMFnews

Hoping and Praying that the CFPB Goes ‘Soft’ on TRID

A period with protection against liability would allow the CFPB to evaluate any unforeseen issues stemming from TRID.


April 20, 2015 - Inside the CFPB

Looking Ahead/Worth Noting

CFPB Community Bank Advisory Council Meeting April 22. CFPB Director Richard Cordray plans to discuss credit scores and credit reporting and the related implications for community banks when the bureau convenes the next meeting of its Community Bank Advisory Council on April 22, from 3:00 p.m. to 4:30 p.m., in Washington, DC. The event is scheduled to be held at the bureau’s location at 1275 First Street, N.E., and is open to the public, but an RSVP is required to attend. CFPB to Hold Research Conference May 7-8. The CFPB plans to host its first research conference May 7-8, 2015. The conference will focus on high-quality consumer finance research, with academic and government researchers presenting their research papers. “The goal ...


April 20, 2015 - Inside the CFPB

Consumer Mortgage Complaints Close to Free Fall in First Quarter

Mortgage-related complaints to the CFPB are falling through the floor on just about every key metric, according to the latest analysis of bureau data by Inside the CFPB, fueled mostly by a plunging in gripes about loan modifications. The data reflect the depressed levels of mortgage originations in recent years as well as a continued rebound in home price appreciation. The plunge is most notable when comparing first-quarter 2015 numbers with the same period last year. For instance, total consumer gripes about their home loans fell 33.5 percent in 1Q15 versus 1Q14. The fall in belly-aching about loan mods was even more dramatic, down 38.6 percent, the data show. Consumer criticisms about mortgage servicing also declined markedly but not quite ...


April 20, 2015 - Inside the CFPB

CFPB Issues Guidance on DFA Housing Counselor Requirement

The CFPB put out a final interpretive rule last week on how lenders should provide mortgage applicants with a list of local homeownership counseling organizations. Lenders may fulfill this Dodd-Frank Act requirement by using bureau-developed housing counseling lists, which are available via an online tool the CFPB created in 2013, or by generating their own lists using the same Department of Housing and Urban Development data the bureau uses to build its lists. The interpretive rule restates guidance the CFPB issued in 2013, and provides further guidance for lenders who are building their own lists of housing counselors. In response to questions the CFPB has received, the guidance also includes new instructions about how to provide applicants abroad with homeownership ...


April 20, 2015 - Inside the CFPB

Investors Suggest Different Focus For CFPB on ‘Mini-Corr’ Lenders

A group of investors who purchased more than $8 billion in loans from mini-correspondents in 2014 responded to the CFPB’s “mini-corr” guidance and suggested the bureau use somewhat different questions when trying to determine if an entity under review has in fact made the transition from mortgage broker to correspondent lender. According to a copy of the materials sent to the bureau and obtained by Inside the CFPB, the first question the investors suggested was, when does the sales transaction take place when a loan is sold by a lender to an investor? To ensure that a transaction in question truly occurs as a sale in the secondary market, as opposed to a table-funded transaction, several steps should transpire, the ...


April 20, 2015 - Inside the CFPB

CFPB, Navajo Nation Act to Stop Alleged Tax-Refund Scheme

The CFPB and the Navajo Nation took joint action last week against companies and individuals who allegedly operated an illegal tax-refund scheme. The alleged scam was based on tax-preparation franchises steering low-income consumers, including many citizens of the Navajo Nation, toward high-cost tax-refund-anticipation loans, the bureau said. The complaint identified Jeffrey Scott Thomas, who through his company, J Thomas Development of NM, Inc., owned four H&R Block tax-preparation franchises in New Mexico. The bureau and the Navajo Nation did not find that H&R Block participated in this scheme, the CFPB said, and H&R Block terminated its relationship with those franchises, which then closed in September 2014. “Before they closed, the tax franchises catered largely to low-income citizens of the Navajo ...


April 20, 2015 - Inside the CFPB

CFPB Temporarily Suspends CC Issuer Submission Requirement

The CFPB temporarily put on hold a requirement that certain credit card issuers send their agreements to the bureau every quarter in order to facilitate posting on the agency’s own website. The final rule issued by the bureau last week suspends for one year credit card issuers’ obligations to submit their credit card agreements to the CFPB. Under the rule, credit card issuers will not be required to submit agreements that would otherwise have been due to the bureau by the first business day on or after April 30, July 31 and October 31 of 2015, and January 31, 2016. “During this time, the bureau will work to develop a more streamlined and automated electronic submission system,” the agency said. ...


April 20, 2015 - Inside the CFPB

Warren Wants Auto Dealers’ Scalp, Says CFPB Should Get Oversight

The CFPB doesn’t have enough power as currently authorized under the Dodd-Frank Act and should be given oversight over auto dealers, according to the “mother” of the bureau, Sen. Elizabeth Warren, D-MA. “The consumer agency’s early results have been good for consumers and good for the economy as a whole, but there’s more to be done,” Warren said in a speech last week. “Right now, the auto loan market looks increasingly like the pre-crisis housing market, with good actors and bad actors mixed together.” As the senator sees it, the market is now “thick with loose underwriting standards, predatory and discriminatory lending practices,” and increasing repossessions. She then cited one study that estimated that these kinds of auto dealer markups ...


April 20, 2015 - Inside the CFPB

Congresswoman Says Bureau Needs to Create Clear Rules

Congresswoman Krysten Sinema, D-AZ, said that the CFPB can be a source of confusion for many in the mortgage industry. Although the overall idea of the bureau is sound, the implementation has been difficult, she said. “It’s been particularly frustrating for folks working in the industry,” she said at last week’s Mortgage Bankers Association’s National Advocacy Conference in Washington, DC. “Part of the frustration is that the CFPB is set up as an independent organization where Congress doesn’t have any kind of official oversight.” Sinema, a member of the House Committee on Financial Services, believes there’s a lot of room for growth in terms of accountability with the bureau, and said creating clearer rules is a part of it. “One ...


April 20, 2015 - Inside the CFPB

Mortgage Lenders Support Modifying CFPB Structure

The Mortgage Bankers Association sent a letter to House Republican leadership recently in support of three bills that would restructure the CFPB. The bills include H.R. 1266, the Financial Products Safety Commission Act, which would replace the CFPB’s single-director governance structure with a five-member commission. “A commission structure assures judicious consideration of a range of viewpoints in carrying out regulatory functions with appropriate involvement of representatives of both parties and a range of interests including those of both consumers and industry,” the MBA said. There is also H.R. 1261, the Bureau of Consumer Financial Protection Accountability Act, which would subject the bureau to the congressional appropriations process. “It is important to note the legislation does not limit funding for the ...


April 20, 2015 - Inside the CFPB

Bureau Blocks Alleged ‘Robo-Call’ Phantom Debt Collection Operation

As the result of a lawsuit it filed late last month, the CFPB has obtained a preliminary injunction against what it characterized as the ringleaders of a “robo-call” phantom debt-collection operation, their companies and their service providers. According to the CFPB, the debt collectors, using various aliases, allegedly deployed automated calls to manipulate consumers in attempts to collect debt the consumers did not owe to them, and in most instances, to anyone else. The bureau alleges that the scheme depended on the participation of the telemarketing company that sent the robo-calls and payment processors that allowed the collectors to access consumers’ bank accounts. Named in the suit are New York resident Marcus Brown and Georgia resident Mohan Bagga, as well ...


April 20, 2015 - Inside the CFPB

CFPB Cracks Down on Mortgage Lender Over Advertising Practices

The CFPB brought an enforcement action against RMK Financial Corp., a California-based mortgage lender, for allegedly using deceptive mortgage advertising practices, including ads that led consumers to believe that the company was affiliated with the U.S. government. According to the CFPB, RMK used the names and logos of the Department of Veterans Affairs and the FHA in mailed advertisements in such a way as to falsely imply that the ads were sent by the VA or FHA, or that the company or the mortgage products it advertised were endorsed or sponsored by those agencies. RMK’s ads also allegedly misrepresented the loans’ interest rates and estimated monthly payments, including whether the interest rate was fixed or variable. Consumers who called the ...


April 20, 2015 - Inside the CFPB

Lawmakers Join Growing Chorus Calling for Eased TRID Enforcement

The odds that the CFPB will publicly announce or tacitly concede some degree of soft enforcement of its integrated disclosure rule, known as TRID, may have improved recently when two Republican Congressmen called on the bureau to give the mortgage industry such a break when the rule kicks in Aug. 1, 2015. “We strongly encourage you to make the August 1, 2015, to December 31, 2015, timeframe a ‘hold harmless’ period of restrained enforcement and liability,” said Reps. Blaine Luetkemeyer, R-MO, and Randy Neugebauer, R-TX, in a letter recently sent to CFPB Director Richard Cordray. “This would allow all parties to better understand the changes associated with TRID and help ensure consumer confidence and stability in the nation's housing market,” ...


April 20, 2015 - Inside the CFPB

House Points-and-Fees Bill Faces Resistance in Senate

Days after the full House of Representatives passed legislation that would amend the points-and-fees calculation in the CFPB’s ability-to-repay rule, the bill ran into some sudden resistance on the other side of Capitol Hill. H.R. 685, the Mortgage Choice Act, is a bipartisan bill that would clarify that certain affiliated title costs do not count against the “qualified mortgage” 3 percent cap on points and fees under the bureau’s ATR rule. H.R. 685, introduced by Rep. Bill Huizenga, R-MI, with dozens of co-sponsors from both parties, would exclude from the definition of points and fees all title charges, regardless of whether they are charged by an affiliated company, provided they are bona fide and reasonable. Lawmakers in the House passed ...


April 20, 2015 - IMFnews

Short Takes: The Quicken Data Dump to DOJ / Dan Gilbert’s Growing Portfolio of Detroit Properties / Ocwen Gets Extension / ASPS Grants Options to Executives / BofA and IBM?

The lender says government investigators have conducted lengthy depositions with numerous Quicken leaders…


April 20, 2015 - IMFnews

Industry Cheers as Nation’s Largest FHA Lender Sues HUD and DOJ

Quicken is the first major lender in the nation to challenge the government in this regard by filing a lawsuit.


April 20, 2015 - IMFnews

PMIER Fallout: Genworth May Need $700MM of Additional Capital but Expects to be Compliant

In trading Monday, Genworth’s stock price was down slightly trading at $7.96. Its 52-week low is $6.75, its high $18.74.


April 17, 2015 - Inside FHA/VA Lending

New Day USA Faulted for SAFE Act Testing Violations

New Day USA, a major VA lender, agreed to a multi-million dollar settlement this week with state regulators and removed its chief operating officer due to widespread violations involving the Secure and Fair Enforcement for Mortgage Licensing Act. The lender will pay a $5.28 million administrative penalty as part of a consent order and settlement with regulators from 42 states and Washington, DC. New Day also removed COO Paul Alger. In order to meet continuing education requirements ...


April 17, 2015 - Inside FHA/VA Lending

CFPB Targets Lender for Falsely Suggesting FHA, VA Backing

Last week, the Consumer Financial Protection Bureau brought an enforcement action against RMK Financial Corp., an FHA/VA lender based in Rancho Cucamonga, CA, for allegedly using deceptive mortgage advertising practices, including the use of ads that led consumers to believe that the company was affiliated with the U.S. government. The bureau alleged that RMK, also known as Majestic Home Loans, used the names and logos of the Department of Veterans Affairs and ...


April 17, 2015 - Inside FHA/VA Lending

Reverse-Mortgage Lenders Seek Exclusion From Servicing Rules

The reverse mortgage lending industry is asking the Consumer Financial Protection Bureau to clarify that reverse mortgages are excluded from proposed changes to mortgage servicing rules relating to “successors in interest.” In a comment letter, the National Reverse Mortgage Lenders Association warned that requiring lenders to determine which parties meet a new regulatory definition of “successor in interest” could expose lenders to numerous, costly risks. The requirement would ...


April 17, 2015 - Inside FHA/VA Lending

FHA Looks at Non-Traditional Factors to Improve Credit Scoring

The FHA is looking at non-traditional factors in credit scoring that might be considered in determining a borrower’s creditworthiness. In remarks during a credit-access symposium co-hosted by the National Association of Realtors and other industry groups, Department of Housing and Urban Development Secretary Julian Castro said the FHA is looking at various alternative credit-scoring models that might help increase homeownership opportunities for more people ...


April 17, 2015 - Inside Nonconforming Markets

Lenders Divided on Changes to CFPB Rules

Lenders of all stripes continue to push for changes to rules established by the Consumer Financial Protection Bureau. There are divisions among trade groups about which lenders deserve special treatment regarding qualified mortgages and portfolio lending, among other issues. This week, the Community Mortgage Lenders of America proposed that lenders should receive regulatory relief if they are small, largely focus on qualified mortgages and avoid regulatory ...


April 17, 2015 - IMFnews

What We’re Hearing: Concern Over LPMI Discounting? / RoundPoint Still Hunting for a Suitor / A Book out on Seterus? / When Fannie Almost Bought Litton / loanDepot Claims It’s Among the Fastest

If Fannie Mae bought a servicing platform Congress, of course, would blow a gasket...


April 17, 2015 - IMFnews

Deal Agent Seen as ‘Centerpiece’ of Benchmark Non-Agency MBS Project

Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center, is among those who support Treasury’s push to include a deal agent in the benchmark non-agency MBS.


April 16, 2015 - Inside Mortgage Finance

Community Nonbank Lenders Call for ‘Hold Harmless’ Enforcement Period for TRID

Small nonbank mortgage lender groups and other industry representatives once again took the opportunity provided by sympathetic Republicans in Congress to express their anxiety about being able to comply with the pending integrated disclosure rule from the Consumer Financial Protection Bureau when it kicks in Aug. 1, 2015. They echoed a call made late last month by Reps. Blaine Luetkemeyer, R-MO, and Randy Neugebauer, R-TX, for the CFPB to institute a ...


April 16, 2015 - IMFnews

Short Takes: So Much for the Moratorium on Captives Joining FHLBs / Nonprofits Stand Up for Ocwen / Ocwen Layoffs? / Time to Exit SFR? / CFPB Rule Update

Is the bloom off the rose in the single-family home rental market? Some institutional investors are shedding assets.


April 16, 2015 - IMFnews

Nonbank and Community Lenders Push for ‘Hold Harmless’ Enforcement on TRID

Certain factions of the industry want the CFPB to develop a plan to provide implementation support during a restrained enforcement period following the Aug. 1 effective date.


April 15, 2015 - IMFnews

Short Takes: Wall Street Firm Eyeing Mortgage Purchase? / SEC Won’t Take Action Against Carrington / Applications Decline Slightly / Relief for ‘Trailer Park’ Loans? / loanDepot Gets New Chief Credit Risk Officer

The Wall Street firm hunting for mortgage acquisitions is not a depository like JPMorgan Chase...


April 15, 2015 - IMFnews

Treasury Point Man on GSE Reform Defends PSPAs

The remaining undrawn taxpayer commitment to the GSEs is $258.1 billion dollars, Stegman noted.


April 15, 2015 - IMFnews

FHFA Giving Mortgage Insurers an Early Peak at the PMIER Rules

The general fear is that higher-than-needed capital standards will cause mortgage insurers to hold unnecessary amounts of assets that will force the industry to raise premiums.


April 15, 2015 - IMFnews

Low Credit Enhancement on New Jumbo MBS From Two Harbors

Credit enhancement levels set by the rating services play a major role in an issuer’s decision to come to market.


April 15, 2015 - IMFnews

Points-and-Fees Language Passes House but White House Veto Looms

Hours before the House vote, word came from the White House that President Obama would veto the measure.


April 14, 2015 - IMFnews

Short Takes: Bank Servicers Better Positioned / Lenders Aren't Ready for TRID / Appraisal Issues / Foreclosure Trends

“The greater comfort that banks have in the current regulatory environment has situated them as more potential buyers of mortgage servicing product than was the case several years ago,” Fitch Ratings said.


April 13, 2015 - IMFnews

COO Out at New Day USA as Part of Settlement with State Regulators on LO Testing Issues

Regulators found that New Day staff completed continuing education requirements for CEO Robert Posner and COO Paul Alger at least 18 times.


April 13, 2015 - IMFnews

Top Lenders Will Accelerate Their Closing Processes for TRID

BofA and Chase are among the lenders that will move up their consumer-disclosure related processes.


Poll

The Supreme Court recently decided that mortgage loan officers are entitled to overtime pay. How has this affected your shop?

It's a very big deal, but our company will limit OT pay or pay very little.
It’s sort of a big deal, but we have no plans to pay overtime pay at all.
We have no problem paying our LOs OT.
We’re still studying the case and have not yet decided what to do.

vote to see results
Housing Pulse