Browse articles from all of our Newsletters related to Regulations.

March 30, 2015 - IMFnews

Short Takes: Nonbanks Dominate Credit Suisse Jumbo Deal / LLC Wins Freddie NPL Auction / When Will Fannie Sell Some NPLs? / Clayton Buys AVM Vendor / A Reserve Fund for GSE Profits?

So, how come Freddie has conducted a handful of NPL sales thus far and Fannie Mae has not?

March 30, 2015 - IMFnews

TRID Update: Settlement Agents May be Out in the Cold

Some banks have already been doing loan closings themselves...

March 30, 2015 - IMFnews

FHFA Likely To Leave G-Fees Unchanged. As for LLPAs…

Few lenders are counting on a reduction in the current “ongoing” GSE fee, which increased from 13 basis points in 2009 to 40 bps in 2013.

March 27, 2015 - Inside The GSEs

GSE Roundup

New GSE Reserve Fund Bill. Rep. Marsha Blackburn, R-TN, introduced legislation on March 26 requiring the GSEs to send future profits to a newly established reserve fund administered by the FHFA. The bill is titled ''Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015'' and it would “establish a secondary reserve fund for a housing enterprise under conservatorship to protect taxpayers against loss in the event of a housing downturn, and for other purposes." Jumpstart GSE Reform Amendment. On March 25, Sens. Bob Corker, D-TN, and Mark Warner, D-VA, offered an amendment to the Jumpstart GSE Reform Act that would prohibit...

March 27, 2015 - IMFnews

What We’re Hearing: PHH, Worth Double? / BofA, Slow and Really Cautious / No Cut in G-Fees? Here’s Why / Protecting Your Officers and Directors / A Market on Fire: VA Lending

Glenview is bullish on Ocwen but it also owns a large stake in the nonbank...

March 27, 2015 - IMFnews

Going, Going, Gone: HARP Volumes a Shadow of What They Used to Be

Although HARP originations plunged by 76 percent last year, the FHFA may keep the program alive.

March 26, 2015 - IMFnews

Short Takes: Nationstar Hiring? / Ocwen for Sale? / Is it Safe for Nonbanks to Start Originating Seconds? / A Capital Break for MSRs? / Impac Posts Loss

Is it possible that Ocwen will sell the entire company and not just all of its agency servicing rights?

March 26, 2015 - IMFnews

House Panel Votes to Tweak Points-and-Fees Formula

The bill would exclude from the calculation insurance and taxes held in escrow and fees paid to affiliated companies...

March 26, 2015 - IMFnews

CSBS Sets Nonbank Capital Minimum at $2.5 Mil; Guidelines Look a Lot Like FHFA’s

For capital, the proposed baseline standard for all nonbanks would require a base net worth of $2.5 million...

March 26, 2015 - IMFnews

CFPB Holds Firm on Implementation Date for Integrated Disclosure Rule

CFPB General Counsel Meredith Fuchs showed little sympathy for lenders worried about TRID's start date, referencing the rule's long implementation period.

March 25, 2015 - IMFnews

Is the IBM-Owned Seterus About to Face the Music?

Getting information out of Seterus about its business is like trying to crack the Kremlin.

March 25, 2015 - IMFnews

Short Takes: Will SCOTUS Allow Underwater Seconds to be Dismissed? / And Now a Word from RoundPoint / GSE Conservatorships: Long, Strange Trip, Man / A GSE Bill Passing? Not Likely / More on Nationstar

Although RoundPoint isn’t taking any questions regarding a possible sale of the company, it recently published a statement regarding its co-issuance and subservicing businesses.

March 25, 2015 - IMFnews

It’s Time to Scale Back Dodd-Frank, Industry Says

Mortgage professionals overwhelmingly believe the Dodd-Frank Act should be revised, removing barriers to innovation and to reduce the cost of manufacturing a mortgage.

March 25, 2015 - IMFnews

IG Report: FHFA Took 750 Conservatorship ‘Actions’ Against the GSEs in 2014

Fannie and Freddie don't get out of bed in the morning without first talking to the FHFA. (Then again, the two are in conservatorship.)

March 24, 2015 - IMFnews

Ocwen Dumping ‘Clean’ GSE Servicing Rights First; Then the Hard Part Comes

But now comes the hard part for Ocwen: Unloading Fannie Mae and Freddie Mac receivables that have delinquencies.

March 24, 2015 - IMFnews

Is Walter the Next Ocwen? Green Tree Hit With Servicing Downgrades

Fitch said the downgrade was tied to Green Tree’s “aggressive portfolio growth,” noting that the nonbank grew its MSR portfolio by almost three-fold over the past two years.

March 24, 2015 - IMFnews

Mortgage Industry So-So on CFPB Servicing Changes Tied to RESPA-TILA

The CFPB amendments cover nine primary topics, including force-placed insurance and loss mitigation...

March 23, 2015 - IMFnews

Ocwen Declared Noncompliant by NYSE; Delisting a Possibility

Although Ocwen is out of compliance with the NYSE, it continues to sell mortgage servicing rights. Late Monday it disclosed a $25 billion MSR sale to Nationstar.

March 23, 2015 - Inside the CFPB


CFPB Updates TRID Documentation. Last week, the CFPB put out some updates to the implementation materials for its integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The updated material lines up with the rule that was published Feb. 19, 2015, that modifies the 2013 TILA/RESPA integrated disclosure rule (TRID). This rule extends the timing requirement for revised disclosures when consumers lock a rate or extend a rate lock after the Loan Estimate is provided and permits certain language related to construction loans for transactions involving new construction on the LE. Additionally, the bureau is making non-substantive corrections, including citation and cross-reference updates and wording changes for clarification purposes, to various provisions of ...

March 23, 2015 - Inside the CFPB

CFPB Wants to Know How the Credit Card Market is Working

The CFPB issued a formal notice and request for information on how the credit card market is functioning and the effect credit card protections are having on both issuers and consumers. As per the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, the CFPB is required to conduct a review of the consumer credit market every two years. Among its focal points, the bureau wants to know how the terms and conditions of credit card agreements have changed since it conducted its review of the credit card market two years ago. “The bureau is looking to see how card issuers may have changed their pricing, marketing, underwriting, or other practices and whether those changes have benefited or harmed consumers,” the ...

March 23, 2015 - Inside the CFPB

CFPB Identifies Exam Issues With Originations, Fair Lending, Etc.

The CFPB’s latest Supervisory Highlights report identified a number of issues observed during examinations related to mortgage origination, fair lending, consumer reporting, debt collection, and deposits. “In one or more examinations, examiners found that branch managers were loan originators and owners of related marketing services entities,” the report said. Examiners “found instances of improperly allocated expenses on branch income statements which resulted in marketing services entities receiving income based on the profitability of retail loans originated by branch managers. Consequently, branch managers, as owners of the marketing services entities, received compensation based on the terms of transactions originated by the branch managers themselves.” In these cases, bureau examiners directed that compensation to loan originators based on a term of a ...

March 23, 2015 - Inside the CFPB

Concerns About Fraud Dominate Money-Transfer Complaints

Six of the top 10 firms that are the targets of consumer complaints about money transfers saw such submissions drop by double digits from the third quarter of 2014 to the fourth quarter, according to the latest analysis by Inside the CFPB. Overall gripes for all 1,700 companies tracked are down 16.1 percent during that period. However, consumer criticisms are up 52.5 percent when measuring the last nine months of 2014 against the last nine months of 2013. The CFPB started to collect complaints about money transfers in 2Q13. The worst performance in that period was Citibank, which saw complaints jump 133.3 percent. Overall concerns about fraud are head-and-shoulders above any [with one exclusive data chart] ...

March 23, 2015 - Inside the CFPB

Settlement Agents May be Outside Looking In as Big Lenders ‘DIY’

It looks like some of the biggest mortgage lenders in the nation will be closing their loans themselves largely without closing agents, once the CFPB’s integrated disclosure rule kicks in Aug. 1, 2015, one top vendor representative revealed recently. And that might put the big banks at a competitive advantage vis-à-vis their nonbank rivals. “Because this is a paradigm shift, and because the liability is staying on the lender side – both in terms of the accuracy of the disclosure and in the timing – we’ve heard some of the bigger lenders are going to close the loans themselves instead of using settlement agents,” John Vong, CEO of ComplianceEase, told Inside the CFPB recently. “For some of the banks, they have already ...

March 23, 2015 - Inside the CFPB

CFPB Study Critical of Arbitration Suggests a Regulation in the Future

The CFPB put out a study earlier this month that concluded that arbitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class actions. According to the study, very few consumers individually seek relief through arbitration or the federal courts, while millions of consumers are eligible for relief each year through class action settlements. The report also found that more than 75 percent of consumers surveyed did not know whether they were subject to an arbitration clause in their agreements with their financial service providers. Further, fewer than 7 percent of those covered by arbitration clauses realized that the clauses restricted their ability to sue in court. The CFPB said its review of case data from the ...

March 23, 2015 - Inside the CFPB

Credit Unions Support a One-Year Break from Filing CC Agreements

Credit unions support a CFPB proposal that would let them off the hook for one year when it comes to submitting their credit card agreements to the bureau while the agency works to develop a more streamlined and automated electronic submission system. Other requirements, including card issuers’ obligations to post currently-offered agreements on their own Web sites, would remain unaffected by the proposed rule, which was issued in February. Currently, card issuers are required to send agreements to the bureau manually through e-mail. The CFPB intends to come up with a new system through which card issuers would be able to upload agreements directly to the bureau’s database and eliminate the process of e-mail submissions. Among the supporters was the ...

March 23, 2015 - Inside the CFPB

Small Servicer Changes Welcomed, Successor in Interest, Not So Much

The changes the CFPB wants to make to its 2013 mortgage servicing rules under the Real Estate Settlement Procedures Act and the Truth in Lending Act got a mixed reception from the mortgage industry. The proposed rule was issued in mid-December, and the public comment period closed last week. The proposed amendments cover nine primary topics: successors in interest, definition of delinquency, requests for information, force-placed insurance, early intervention, loss mitigation, prompt payment crediting, periodic statements, and small servicer issues. The Independent Community Bankers of America was pleased with the bureau’s proposed amendment to the small servicer definition that will permit a small servicer to service, for a fee, mortgage loans that are seller-financed transactions subject to certain limitations. ...

March 23, 2015 - Inside the CFPB

Bureau Moves Forward on Sharing Complaint Narratives

The CFPB announced last week it is now giving consumers the chance to “opt in” and share their complaint narratives in the CFPB’s public-facing consumer complaint database. Under the new final policy statement – after a summer 2014 request for information – consumers must opt in to share their story and they may opt out at any time. Also, personal information will be removed from narratives. Further, complaint narratives have to meet certain criteria to qualify for publication. For instance, the complaint must be submitted through the CFPB website, and the complaint must not be a duplicate submission. The one substantive criterion is that the consumer must have a confirmed relationship with the financial institution. Elsewhere under the new policy, companies can ...

March 23, 2015 - Inside the CFPB

Industry Asks CFPB for ‘Soft’ Enforcement Period for TRID

More than a dozen industry organizations asked the CFPB last week to implement a “restrained enforcement and liability” or “grace period” through the end of 2015 for those seeking to comply in good faith with its integrated disclosure rule after its August 1, 2015, effective date. “There are ... situations – such as what will occur if a closing cannot go forward on schedule because of occurrences outside the control of the parties – that are not addressed by the regulation which still require additional guidance,” the collection of 16 trade groups said in a joint letter to CFPB Director Richard Cordray. “We would like to use this grace period to identify pain points with stakeholders and then meet with bureau staff ...

March 23, 2015 - IMFnews

Ocwen, Nationstar and SPS Get Hit with ‘Needs Moderate Improvement’ Tag

Ocwen actually received the highest marks possible across its performance review for 4Q, but Treasury said the servicer’s “moderate” improvement rating was due to a lack of progress in implementing previously identified improvements.

March 20, 2015 - Inside FHA/VA Lending

Around the Industry

Loan Modification Trial Payment Plans for Forward Mortgages. The Department of Housing and Urban Development has announced requirements for trial plan duration, required signatures, and reporting for trial payment-plan agreements, and the conditions under which FHA deems a TPP to have failed.Lenders must implement the requirements in Mortgagee Letter 2015-07 for all TPPs offered to borrowers on or after June 1, 2015. FHA Publishes Additional Sections of HUD Single-Family Policy Handbook. The FHA has published additional sections for the SF Handbook, including the following: Doing Business with FHA – Lenders and Mortgagees Doing Business with FHA – Other participants in FHA Transactions – Appraisers; Quality Control, Oversight and Compliance – Lenders and Mortgagees; Quality Control Oversight, and Compliance – Other Participants in FHA Transactions – Appraisers ...

March 20, 2015 - Inside FHA/VA Lending

Study Finds FHA Loans Cost More Than Private Mortgage Insurance

Private mortgage insurance is generally a better deal than FHA for mortgages with 90 percent or higher loan-to-value ratios, according to a new report from WalletHub, a web-based organization that monitors a variety of financial services. The report also found little variation in pricing in the private MI market based on monthly premiums charged by Genworth Mortgage Insurance Co., Mortgage Guaranty Insurance Corp., Radian Guaranty and Essent Guaranty. Of the four MIs in the study, Essent charged the highest premiums for loans with a 620-679 credit score. For all other FICO scores, the MIs charged uniform premium rates. For 97 percent LTV mortgages with a 620-679 credit score, FHA charged a cheaper monthly premium rate compared to private MIs. For 95 percent LTV and 90 percent LTV loans, the FHA charged monthly payments of $218.29 and $206.80, respectively, compared to ...

March 20, 2015 - Inside FHA/VA Lending

FHA Servicing Transfer Could Be in Spending Bill, Not in Reform Bill

The FHA’s request for authority to require specialized subservicing in certain circumstances could be included in an appropriations bill rather than in housing-related legislation, according to Sen. Jack Reed, D-RI, ranking minority member of the Senate Appropriations Subcommittee on Transportation, HUD and other Related Agencies. Reed raised the possibility during a recent hearing on the Department of Housing and Urban Development’s FY 2016 budget proposal. Among other things, the FHA has been seeking authority from Congress to require, in individual cases, inexperienced lender/servicers to transfer the function to a specialized servicer to better assist borrowers and reduce losses to the Mutual Mortgage Insurance Fund. Allowing the FHA to require transfer of servicing will help more distressed homeowners stay in their homes and avoid foreclosure, said ...

March 20, 2015 - Inside FHA/VA Lending

Advocates Say New HECM Rule is A Disaster for Surviving Spouses

Consumer advocates and attorneys are urging the Department of Housing and Urban Development to delay the implementation of a new policy that purports to provide relief to surviving spouses of reverse-mortgage borrowers and to find solutions that are more effective. The group said the policy HUD announced in Mortgagee Letter 2015-03 on Jan. 29 is so restrictive that virtually all surviving non-borrowing spouses will get no relief. A letter to the agency, drafted by the National Consumer Law Center and signed by the Consumers Union, California Reinvestment Coalition, National Housing Law Project, Housing and Economic Rights Advocates and Institute on Aging denounced the new policy. They said most surviving spouses of deceased borrowers of Home Equity Conversion Mortgage loans will not be able to meet the policy’s stringent guidelines and will ...

March 20, 2015 - Inside FHA/VA Lending

HUD Reports Significant Progress In Distressed Loan Resolutions

Half of the loans in the Distressed Asset Stabilization Program have been resolved and a significant percentage of homeowners have avoided foreclosure, according to the latest DASP progress report from the Department of Housing and Urban Development. A review of the FHA single-family loan sale (SFLS) program found that, of the 48.6 percent that have been resolved, 43.5 percent have avoided foreclosure. The anticipated alternative for these borrowers – property conveyance, where their property becomes real estate-owned – would have led to foreclosure, the report said. Specifically, short sales and deeds-in-lieu of foreclosure were the disposition methods employed in foreclosure avoidance. In addition, 16.3 percent of resolved loans were re-performing as of Feb. 6, 2015. This reflects a 49.5 percent change in the re-performing rate reported in the ...

March 20, 2015 - Inside Nonconforming Markets

HAMP Servicers Faulted for Processing Delays

Non-agency servicers participating in the Home Affordable Modification Program have room for improvement, according to the latest testing results completed on behalf of the Treasury Department. While no servicers were in danger of having HAMP incentive payments withheld, the Treasury said Nationstar Mortgage, Ocwen Financial and Select Portfolio Servicing were all in need of “moderate” improvement as of the fourth quarter of 2014 ... [Includes one data chart]

March 20, 2015 - IMFnews

What We’re Hearing: High-Touch Toast? / Not Wells Fargo’s Idea? / Regulators Wake Up and Smell the Coffee on Nonbanks? / IMA Selling $20 Billion of MSRs / Citadel’s Nonprime Run-Rate Hits $300 Million

Interactive Mortgage Advisors is working on several servicing transactions totaling about $20 billion in product. But the receivables are being offered through private negotiation only...

March 20, 2015 - IMFnews

Except for Loans to the Affluent, the Non-QM Market Showing Muted Promise

For the past year, Nationstar Mortgage has been working toward offering a non-QM refinance product.

March 20, 2015 - IMFnews

State Standards for Nonbanks Likely to Cover More Than Just Capital

Although much of the discussion about nonbank servicing standards has focused on capital, the CSBS framework will cover considerably more ground than that.

March 19, 2015 - IMFnews

Short Takes: Cooperman and Omega Throwing in the Towel on Altisource / ASPS Hits New, 52-Week Low / WinWater’s New Jumbo Deal / Lower Originations? / The Best MSRs Go First

March 19, 2015 - IMFnews

Industry Asks for ‘Soft’ Enforcement Period on TRID

In total, 16 groups signed the letter, including the American Bankers Association, the Community Mortgage Lenders of America, and the National Association of Realtors...

March 19, 2015 - Inside Mortgage Finance

Mortgage Call-Center Lenders May Have the Most Exposure from Supreme Court Ruling on LO Overtime

In the wake of a recent Supreme Court of the United States decision allowing loan officers to receive overtime pay, mortgage company owners are already laying down the law: no OT for LOs unless management approves the extra time first. The freshly decided case is causing lenders to distinguish between “inside” and “outside” salesforces. According to early interpretations of the decision, loan officers who work in a branch more than half their time are ...

March 19, 2015 - IMFnews

CFPB Moves Forward on Sharing Complaint Narratives; Lenders Not Happy

Still, industry representatives were less than thrilled, including the Consumer Bankers Association.

March 19, 2015 - Inside Mortgage Finance

State Standards for Nonbank Servicers Likely to Cover More Than Just Capital

A key organization of state banking regulators will soon release a proposed framework for nonbank mortgage servicers, though how it is finally implemented is still up in the air. The Conference of State Bank Supervisors has put together a regulatory framework that covers 12 areas of servicing and is close to being issued for public comment, said Michael Stevens, senior executive vice president of the group, during a panel session at a mortgage servicing conference ...

March 18, 2015 - IMFnews

Short Takes: Nonprime Lender Deephaven Gains a Top Executive / A Harbinger of LLPA Changes? / An Easing of Credit Standards? / Where Are Impac’s Earnings? VRM Hires Former Fannie Official

Subprime lender Deephaven Mortgage has a new executive...

March 18, 2015 - IMFnews

Ocwen Delays 4Q Results Once Again, Raises Questions About Its MSR Spin-Off, HLSS

Meanwhile, HLSS on Wednesday disclosed that it too needs more time to file its annual 10-K...

March 18, 2015 - IMFnews

FHFA IG Says GSE Profit Revival Won’t Last; G-Fee Doubts?

Another possible outcome on g-fees is no change at all. To date, FHFA Director Mel Watt hasn’t tipped his hand.

March 17, 2015 - IMFnews

The ‘Mystery’ Captive That Joined the Indianapolis FHLB is Five Oaks

A ban on captive insurers joining the FHLB system appears to be over.

March 16, 2015 - IMFnews

Short Takes: So, Who’s The Lucky Captive (REIT) Approved for FHLB Membership? / 23 Responses on the CSP / Fannie Headed Downtown / Comergence Gets New Assignment

The captive insurer is owned by a REIT, a spokeswoman for the district bank said, but declined to name either.

March 13, 2015 - IMFnews

What We’re Hearing: Why Lenders are Suspicious of Realtors / So, What’s Wrong with a Gratuity? / The State Audited My Company and All I Got Was This Lousy Bill for Hotel and Transportation / A ‘Good’ LO Works at Least 50 Hours a Week

This mortgage manager estimates a “good” LO works 50 to 70 hours a week…

March 13, 2015 - IMFnews

The Ocwen Tally on Servicing Breaches: 482; But Unless the Trustee Acts…

Over the past few years, 482 of Ocwen’s deals have experienced breaches, but the trustee generally did not seek termination of the servicing contract.


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.

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