Regulations

Browse articles from all of our Newsletters related to Regulations.

September 19, 2014 - Inside The GSEs

Enterprise Endnotes

Experts Laud FHFA’s Plan for ‘Single Security,’ But Urge Quicker Arrival at Goal. The Federal Housing Finance Agency’s “single security” proposal for a generic Fannie Mae/Freddie Mac MBS is “well-thought out” and “worthy of serious consideration,” but the agency should pick up the pace in its implementation to avoid making the solution part of the problem, according to a paper from the Urban Institute. Lewis Ranieri, chairman of Ranieri Partners, and Laurie Goodman, director of the UI’s Housing Policy Center, expressed concern that the FHFA “may be contemplating a slower pace in the project than it warrants.”


September 19, 2014 - Inside The GSEs

Commenters Call on FHFA To Change PMIER Draft Rules

The Federal Housing Finance Agency’s proposed capital requirements for private mortgage insurers would raise costs for borrowers but there is a need for new standards, according to industry group comments. The Mortgage Bankers Association, National Association of Realtors and several private MI companies have urged the Federal Housing Finance Agency to ease proposed capital requirements for private MIs.


September 19, 2014 - Inside The GSEs

Industry Input Letters to FHFA Show Little Appetite for GSE G-Fee Hike

There is little enthusiasm in the mortgage market for higher guaranty fees charged by Fannie Mae and Freddie Mac, various industry groups indicated in input letters to the GSEs’ regulator. In June, the Federal Housing Finance Agency issued a call for public comment on how the GSEs should calculate g-fees and whether the FHFA should proceed with a 10 basis point g-fee hike announced last year. In one of his first acts as FHFA director in January, Mel Watt postponed the g-fee hike pending further study.


September 19, 2014 - Inside The GSEs

FHLBank Membership Rule Foes Turn to Congress to Pressure FHFA

Hundreds of community banks, credit unions and community development financial intuitions within the Federal Home Loan Bank system will be adversely impacted and even face expulsion from the FHLBanks if a proposed Federal Housing Finance Agency rule change goes into effect, say rule opponents. The FHFA’s proposal, issued earlier this month, would change the FHLBank membership qualifications by imposing an ongoing asset test on FHLB members, requiring that they track and report on the mortgage-related assets they hold on their books.


September 19, 2014 - Inside The GSEs

Groups Petition Congress to Seek Transparency in GSE Profit Sweep

Congress should put the screws to the Treasury Department to disclose all documents pertaining to the origins of the Obama administration’s controversial “net-worth sweep” of Fannie Mae and Freddie Mac profits, according to a coalition of right-leaning public policy groups. In a letter dispatched late this week to the top Republican and Democrat of the House Financial Services Oversight and Investigations Subcommittee, the 17 groups led by the Competitive Enterprise Institute urged lawmakers to intervene to impose transparency over what GSE shareholders consider an extra-legal maneuver by the executive branch.


September 19, 2014 - IMFnews

What We're Hearing: Do Banks Really Hate Mortgages? / Stearns Hires Former BofA Retail Honcho / Do the GSEs Really Need Capital? / A Bad NPL Experience?

Commercial banks hate mortgages. No, they don't. Yes, they do. No they don't. Yes, they do...


September 19, 2014 - IMFnews

The G-Fee Quandary: Will Higher Prices Stimulate the Non-Agency Market?

SIFMA did not take a stance on whether g-fees should be adjusted up or down. Instead, the trade group stressed that it is unclear how a change to g-fees would impact non-agency activity.


September 19, 2014 - IMFnews

Is ‘Disparate Impact’ a Valid Claim Under the Fair Housing Act?

According to the final rule that HUD adopted in February 2013, a practice has a discriminatory effect on a protected class if HUD or a private plaintiff can establish liability under the statute, even if there is no intent to discriminate.


September 18, 2014 - Inside Mortgage Finance

Supreme Court Preparing to Hear Cases Involving DOL’s Overtime Guidance for Loan Officers

The U.S. Supreme Court is set to hear cases in its coming term regarding guidance issued by the Department of Labor involving overtime pay for loan officers. Oral arguments are scheduled for Dec. 1, and a decision is expected by June. The cases are Perez v. Mortgage Bankers Association and Nickols v. Mortgage Bankers Association. The MBA has argued that the DOL didn’t follow rulemaking procedures in 2010 when the regulator withdrew guidance stating that loan officers could be exempt from overtime compensation requirements under the Fair Labor Standards Act. Lenders have received...


September 18, 2014 - Inside Mortgage Finance

IL Court’s Narrow Ruling in Disparate-Impact Case Allows DC Court to Focus on Bigger Picture

An Illinois district court’s decision that federal preemption issues are not ripe may now prompt a federal district court in Washington, DC, to examine the broader issue of whether disparate impact is a valid claim under the Fair Housing Act. The Illinois lawsuit, Property Casualty Insurers Association of America v. U.S. Department of Housing and Urban Development, is one of two insurance-industry legal challenges to HUD’s disparate-impact rule. The second case was filed by two other trade groups, the American Insurance Association and the National Association of Mutual Insurance Companies, and is pending in federal court in the nation’s capital. According to the final rule that HUD adopted in February 2013, a practice has...


September 18, 2014 - Inside Mortgage Finance

Former Commissioners Favor Creating an Independent FHA to Resolve Funding Issues, Be More Decisive

Current and former commissioners of the FHA this week said the venerable program could carry out its mission more effectively if it was an independent, self-funded government enterprise. During this week’s Housing Summit hosted by the Bipartisan Policy Center, the five FHA commissioners – incumbent Carol Galante and alumni Brian Montgomery, Nicolas Retsinas, David Stevens and John Weicher – concurred that working with Congress, particularly on budget issues, has made it more difficult for the agency to operate safely and soundly. “We’re...


September 18, 2014 - IMFnews

Homewood Mortgage Rolls Out Stated-Income Jumbo Product, with Some Strings Attached

On its stated-income product, Homewood requires a minimum of three months of bank statements for both business and personal assets.


September 18, 2014 - IMFnews

Supreme Court Prepares to Hear ‘Guidance’ Cases Tied to LO Overtime

The MBA argued that the DOL didn’t follow rulemaking procedures in 2010 when the regulator withdrew guidance stating that loan officers could be exempt from overtime compensation requirements...


September 17, 2014 - IMFnews

Short Takes: New Hampshire Nonbank About to be Sold / PE Firms Like Hard Money, Crowdfunding, P2P / Are Commercial Banks Toast? / Virginia Sues Wall Street Over PLS / Great Scot! Who Gets the RBS Liability?

Although there appears to be strong interest these days in mortgage banking firms, the outlook isn’t particularly bright for commercial banks.


September 17, 2014 - IMFnews

FHFA Rejects IG’s Findings on the Loosening of Buyback Rules

The FHFA partially agreed with the IG's first recommendation and flatly rejected the second.


September 17, 2014 - IMFnews

Former Obama Official: You Can Trace Tight Credit to Lenders Paying Huge Legal Settlements

“Law enforcement has been on a bit of a run with settlements and enforcement," said Jim Parrott, a former Obama administration point man on housing.


September 17, 2014 - IMFnews

Industry Asks CFPB for More Written Guidance on RESPA-TILA Integration

The 16, which include the Mortgage Bankers Association and American Bankers Association, want the CFPB to deepen its engagement using industry forums.


September 16, 2014 - IMFnews

Short Takes: What’s MERS Worth? / Fannie, Freddie and MBA Could Use the Money / MBA Tells FHFA to go Easy on Buybacks / A Drop in FHA FICOs / Clayton’s New Hire

The Mortgage Bankers Association wants the FHFA to push Fannie and Freddie to go easy on mortgage buybacks.


September 16, 2014 - IMFnews

Ex-FHFA Chief DeMarco Warns that Private Capital May Lose Interest in Mortgages

“The conservatorships are a huge barrier to entry for private capital,” said former FHFA Acting Director Edward DeMarco.


September 16, 2014 - IMFnews

FHA Commissioner Would Like to See Agency Separated from HUD

David Stevens, who led the FHA for part of the financial crisis, recalled difficult times dealing with policymakers and appropriators.


September 15, 2014 - Inside the CFPB

Legislative Update/Worth Noting/Looking Ahead

Industry Tries to Rustle Up Support for QM Points-and-Fees Legislation. The Mortgage Action Alliance, the grassroots advocacy group of the Mortgage Bankers Association, recently issued a “call to action” to its members to get on the telephone and call their Senators and urge them to pass legislation that would make key changes to the way points and fees are calculated under the qualified mortgage definition in the CFPB’s ability-to-repay rule. S. 1577, the Mortgage Choice Act of 2013, introduced last year by Sen. Joe Manchin, D-WV, exempts any affiliated title charges and escrow charges for taxes and insurance from the QM cap on points and fees. Manchin’s bill is a legislative companion to H.R. 3211, the Mortgage Choice Act, which ...


September 15, 2014 - Inside the CFPB

Hanna Files Motion to Dismiss CFPB Enforcement Action

Last week, the law firm of Fredrick J. Hanna & Associates filed a motion to dismiss the enforcement action brought by the CFPB against it back in July. The bureau accused the firm and its three principal partners – Frederick Hanna, Joseph Cooling and Robert Winter – of operating a debt-collection lawsuit mill that used illegal tactics to intimidate consumers into paying debts they may not owe. Between 2009 and 2013, the firm filed more than 350,000 debt-collection lawsuits in Georgia alone, according to the CFPB. The bureau further alleged the defendants collected millions of dollars each year through these lawsuits, often from consumers who may not actually have owed the debts. But in its motion to dismiss, Hanna & Associates argued ...


September 15, 2014 - Inside the CFPB

OIG Auditing CFPB’s Contract Management, Hiring Processes

The CFPB’s Office of Inspector General has a handful of ongoing reviews and audits underway with a projected fourth-quarter completion date, most notably audits of the bureau’s contract management and hiring processes. The OIG said its audit of the CFPB’s contract management process is a follow-up to the evaluation of the bureau’s contract solicitation and selection process. The OIG’s focus this time around will include the CFPB’s compliance with applicable rules established by what’s known as the Federal Acquisition Regulation, and the effectiveness of the bureau’s internal controls related to contract management. On a related note, the OIG is also evaluating the bureau’s hiring process, including its administration of recruitment and selection incentives to recruit new employees. This review was ...


September 15, 2014 - Inside the CFPB

Is a Uniform Code for the Debt- Buying Industry In the Works?

The CFPB is reviewing the debt collection practices of debt buyers as part of its broader expected rulemaking on debt collection. According to Alan Kaplinsky, a practice leader with the Ballard Spahr law firm in Philadelphia, those practices could become the subject of a uniform state debt-buying code if the newly authorized Study Committee on the Transfer and Recording of Consumer Debt concludes that a uniform code will produce significant benefits to the public. The new panel was authorized this summer by the non-partisan Uniform Law Commission. The ULC noted that the Office of the Comptroller of the Currency in 2013 issued a “best practices” document that expressed concern about safety, soundness and consumer protection issues involved with such sales ...


September 15, 2014 - Inside the CFPB

Rep. Maloney Urges CFPB to Act On Overdraft Fees, Despite Trends

In what looks like an example of a minority party member of Congress trying to outflank the majority party, Rep. Carol Maloney, D-NY, a member of the House Financial Services Committee, wrote CFPB Director Richard Cordray last week and urged the agency take specific steps to address certain checking account overdraft practices. Some of her suggestions are included in legislation she introduced last year that has not been taken up by committee. Maloney’s recommendations come despite indications that most bank customers overall pay little or nothing for their monthly banking services. Referencing a related study issued by the bureau in July, Maloney said the agency’s report provides “indisputable evidence” that consumers who have not opted in to overdraft protection are ...


September 15, 2014 - Inside the CFPB

Waters’ Bill Would Task CFPB With Multiple Credit-Reporting Reforms

The CFPB would have a handful of new oversight responsibilities for the credit-reporting sector under a discussion draft of possible legislation entitled the “Fair Credit Reporting Improvement Act of 2014,” circulated last week by Rep. Maxine Waters, D-CA, the ranking member of the House Financial Services Committee. Among the draft’s provisions is a directive for the bureau to set standards for validating the accuracy and predictive value of credit score algorithms, formulas, models, programs, and mechanisms…


September 15, 2014 - Inside the CFPB

Lender Reps See Potential and Concern in Use of Mobile Tech

Smaller financial institutions told the CFPB they see some positive possibilities for facilitating the banking needs of certain economically vulnerable segments of society through the use of mobile technologies. However, there are certain limitations with current capabilities, as well as unique security and fraud concerns. “The increased availability and use of not only mobile phones but mobile devices across a wide spectrum of sizes, weights and portability, as well as the continuing expansion of the mobile banking functions and capabilities of those devices, offer opportunity to expand bank services to current banking customers as well as those who are termed unbanked or underbanked,” the American Bankers Association said. While mobile banking offers potential for financial inclusion, it is not a ...


September 15, 2014 - Inside the CFPB

CFPB Warns Credit Card Issuers About Interest-Rate Promos

The CFPB recently warned credit card companies of the risk of engaging in deceptive and/or abusive acts and practices in connection with solicitations that offer a promotional annual percentage rate (APR) on a particular transaction – such as convenience checks, deferred interest/promotional interest rate purchases, and balance transfers – over a defined period of time. The bureau said it is concerned that some companies are luring consumers with offers of reduced or zero interest for a specific purchase or balances transferred from another credit card, and then hitting them with surprise interest charges. In CFPB Bulletin 2014-02, the bureau states that it has observed that some card issuers do not adequately convey in their marketing materials that a consumer who accepts such ...


September 15, 2014 - Inside the CFPB

Top 3 Money Transfer Providers Generate Most Consumer Gripes

Long-time leaders in the money transfer space Western Union and MoneyGram – along with relative newcomer PayPal – are collectively responsible for a huge 62 percent of the complaints consumers filed with the CFPB about their wire transfer transactions over the last year, according to a new analysis and ranking by Inside the CFPB. Western Union had the dubious distinction of leading the way with 356 cumulative gripes from the second quarter of 2013 to the second quarter of 2014. The biggest belly-ache about the company fit into the “fraud or scam” category, with 160 such citations, followed by “money not available as promised,” which was cited by 56 consumers. MoneyGram came in with the second-largest number of consumer grievances (215), with ...


September 15, 2014 - Inside the CFPB

CFPB Issues Final Rule for ‘Larger Participants’ in Remittances Sector

Late last week, the CFPB issued one of its “larger participants” final rules, this one asserting the bureau’s regulatory authority over larger nonbank providers of international money transfers, otherwise known as remittances. The CFPB said the new rule – largely unchanged from the proposed rule released in January – will help ensure that such providers are complying with the bureau’s existing protections for consumers sending money abroad. Under the final rule, as of Dec. 1, 2014, examiners from the bureau will be able to scrutinize larger nonbank international money transfer providers for compliance with the bureau’s original remittances rule, which was issued back in October 2013. At the top of the list are tougher disclosures. Under federal law, remittance transfer providers generally ...


September 15, 2014 - Inside the CFPB

More Rules Coming From CFPB by Year’s End, Cordray Tells Senators

If lenders think they have a full plate of regulations to digest, just wait. More appetizers and main courses are on the way, courtesy of the CFPB and the Dodd-Frank Wall Street Reform and Consumer Protection Act. For the real estate finance industry, there is more to follow all the mortgage-related rules that took effect in January of this year, or the integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act, which takes effect in August of 2015. “This summer, we also issued a proposed rule to implement changes Congress made to the Home Mortgage Disclosure Act,” said CFPB Director Richard Cordray, in appearance before the Senate Banking, Housing and Urban Affairs Committee ...


September 15, 2014 - Inside the CFPB

“Treacherous,” Complex TRID Generates Host of Concerns

The CFPB’s integrated disclosure rule will be “treacherous” for mortgage lenders and will likely be as challenging to comply with as its massive size and complexity suggests, according to top industry experts. Speaking to attendees of an Inside Mortgage Finance webinar last week on the CFPB’s TILA/RESPA Integrated Disclosure rule – known as “TRID” – Rod Alba, senior regulatory counsel for the American Bankers Association, rattled off a number of concerns that mortgage lenders still have with the new rule, which is set to take effect Aug. 1, 2015. “The regulation is enormously voluminous in length. The sheer size of this rule, we think, makes this regulation treacherous for banks in terms of liability, in terms of enforcement, in terms of understanding ...


September 15, 2014 - Inside the CFPB

Mortgage Lenders Need to Get With The TRID Now, Antonakes Urges

CFPB Deputy Director Steve Antonakes told attendees at the North Carolina Bankers Association’s mortgage conference last week that lenders need to start prepping for the bureau’s impending TILA/RESPA Integrated Disclosure rule, known in bureau-speak these days as the “TRID.” While the use of the TRID’s new Loan Estimate and Closing Disclosure forms is not required until August 2015, “mortgage lenders should already be working on the new rule and getting ready now,” Antonakes urged. “Significant changes to business operations and technology platforms will require close collaboration with third-party service providers. “While many mortgage institutions are already deep into implementing these changes, we want to make sure that everyone understands the need to be focusing on August 2015 now,” Antonakes emphasized...


September 15, 2014 - IMFnews

Short Takes: New Jumbo Deal from Two Harbors / Investors Dumping Fannie and Freddie Stock? / GSE Plaintiff Hires Former Fannie CFO Howard / M&A for NYCB? / Want a Loan? Don’t Get Pregnant / Norcom Opens Another Branch in Connecticut

Is it time to sell shares in Fannie Mae and Freddie Mac?


September 15, 2014 - IMFnews

Colorado Lead Generation Firm Slammed by FTC, Agrees to Fine

Delta Prime Refinance was the business trade name used by Intermundo.


September 15, 2014 - IMFnews

HSBC Settles FHFA MBS Fraud Case for $550 Million

The Finance Agency filed suit against HSBC and 17 other firms in 2011. The two remaining defendants in the cases include Nomura Holdings and the Royal Bank of Scotland Group.


September 15, 2014 - IMFnews

White House Will Meet with Lenders Over Mortgage Credit Access

The White House meeting is expected to touch on key lender issues, including credit overlays, government enforcement actions, regulatory burden and risk-based versus FHA pricing.


September 12, 2014 - Inside FHA Lending

Around the Industry

$835 Million Ginnie Mae Servicing Portfolio Hits Market. Mountain Servicing Group (MSG), a residential mortgage servicing rights transaction and valuation advisor, has announced an $835 million Ginnie Mae bulk-servicing offering. The company is the exclusive advisor to the seller, described only as “one of the premier mortgage bankers in the country.” The portfolio includes 99.7 percent fixed-rate and 100 percent first-lien, government-backed loans, with a weighted average original FICO of 691. Its weighted origination loan-to-value ratio is 94 percent, and its weighted average interest rate is 4.0 percent. The average loan size is $205,309. Top states for the portfolio are California (23.9 percent), New York (9.6 percent), Florida (4.7 percent), and Pennsylvania (4.5 percent). “It’s an exceptionally clean GNMA portfolio, with very low coupon and low delinquencies,” said Robert Wellerstein, managing director at MSG. “We expect this package to ...


September 12, 2014 - Inside FHA Lending

FHA FRM Lending Propels Overall Volume in 2Q

FHA single-family loan production picked up in the second quarter thanks to a surge in fixed-rate mortgage lending, according to an Inside FHA Lending analysis of agency data. A 15.2 percent increase in FHA fixed-rate volume helped propel overall FHA originations in the second quarter, which rose 16.0 percent from the first quarter. Adjustable-rate lending also was up 32.3 percent over the same period. FHA purchase originations increased 20.6 percent, while FHA-insured refinances rose by only 4.3 percent. On the other hand, conforming-to-FHA refinances were down 4.5 percent from the first quarter. FHA baseline lending (below $417,000) saw volume rise 17.6 percent, while FHA-jumbo loan amounts up to the statutory high-cost loan limit increased by 6.2 percent. On the other hand, the volume of jumbos exceeding ... [1 chart]


September 12, 2014 - Inside FHA Lending

FHA Jumbo Production Slips Further in 2Q14

The first-quarter decline in FHA jumbo production spilled over into the second quarter as volume dropped another 21.7 percent, ending the first half of the year with $4.7 billion in new government-insured jumbo loans, according to an Inside FHA Lending analysis of agency snapshot data. On a year-over-year basis, volume fell 56.7 percent over the six-month period compared to the same period last year. Jumbo loans make up a tiny percentage of FHA’s overall portfolio. The FHA has been weaning itself away from jumbos after Republican members of Congress accused the agency of straying from its mission by subsidizing purchases of million-dollar houses. A statutory readjustment this year brought the FHA loan limit in high-cost areas down to $625,500, the same level as the high-cost loan limits for conforming mortgages in high-cost areas. The baseline loan limits for both conforming and FHA loans in 2014 ... [1 chart]


September 12, 2014 - Inside FHA Lending

Investors Lining Up for Sixth Distressed Note Sale

The Department of Housing and Urban Development is now qualifying investors for its sixth auction of non-performing loans (NPLs) amid nationwide protests calling for reform of HUD’s distressed note sale program. Single-Family Loan Sale SFLS 2014-2 includes 15,232 single-family, non-performing mortgages with a total unpaid principal of $2.3 billion. The sale consists of 10 loan pools ranging from $97 million to $825 million with collateral dispersed across the country, according to loan sale advisor DebtX. It is scheduled to bid on Sept. 30. On June 11, HUD sold a $4.8 billion portfolio of NPLs, the first of a two-part sale. The national offering consisted of approximately 23,200 loans divided into 16 pools ranging from $93 million to $1 billion. The loans are backed by properties across the ...


September 12, 2014 - Inside FHA Lending

FHA Lending Back on Track with <680 Score

The average FHA credit score in the second quarter of 2014 continued to decline from the record highs of 2011, but remains well above the levels preceding the mortgage and credit crisis, according to FHA’s latest report to Congress on the state of the agency’s Mutual Mortgage Insurance Fund. The FHA’s second-quarter average credit score of 680 was 3 points below the previous quarter’s score and 13 points below the score during the same period last year. The report’s data suggest that FHA has accomplished its goal of shifting its market share to the 620-679 credit score bucket consistent with its target market while ceding its share of loans with scores exceeding 720 to the private MI sector. The last time borrowers’ average credit score hit 680 was in the second quarter of 2009. FHA officials said they are working to have 75 percent of the FHA lending in the ...


September 12, 2014 - Inside FHA Lending

MMIF in Negative Cash Flow in 2Q14, Says Report

The FHA Mutual Mortgage Insurance Fund account balances fell by $0.5 billion during the second quarter of 2014 to $45.3 billion due to higher claim payments and property expenses. Observers, nonetheless, remain optimistic the fund will return to full stability in 2015 with no further change in the mortgage insurance premium charged to borrowers. The MMIF’s total balances peaked at $48.4 billion in the third quarter of 2013 and then slipped gradually over the last three quarters, according to data in the FHA’s latest report to Congress regarding the financial health of the Mutual Mortgage Insurance Fund. Total revenues from premium collections, property sale, and note sale proceeds were $4.3 billion, while $5.1 billion was paid to cover claims and property expenses in the second quarter. This resulted in a negative$821 million cash flow in the quarter, the smallest outflow since ...


September 12, 2014 - Inside FHA Lending

Obama to Seek Solutions to Credit Access

Obama will meet with top banking executives and industry trade groups on Sept. 17 to explore potential solutions to lender overlays and other problems that hinder first-time homebuyers and other qualified borrowers from obtaining an FHA or conventional mortgage. The meeting is expected to touch on key lender issues, including credit overlays, government enforcement actions, regulatory burden and risk-based versus FHA pricing. Lenders say they are willing to originate single-family mortgages to qualified borrowers and first-time homebuyers but they feel the post-crisis environment has turned hostile against them. Repurchases and indemnifications have dampened their willingness to lend to moderate- and lower-income borrowers, they admit. Regardless of policy changes designed to increase lending in the lower credit score range (620 to 679), FHA enforcement actions to ...


September 12, 2014 - Inside Nonconforming Markets

MBS Clean-Up Calls Gaining Popularity

A number of firms that hold vintage non-agency mortgage-backed securities are using their clean-up call options as the outstanding balance in the MBS dwindles. Executing clean-up calls can be more profitable for certain firms than allowing securities to run-off. Chimera Investment is the latest firm to tout its clean-up call strategy. The real estate investment trust said it acquired the rights to $4.8 billion of seasoned subprime mortgages by purchasing subordinate tranches of non-agency MBS issued by Springleaf Finance between 2011 and 2013. The purchase price wasn’t disclosed.


September 12, 2014 - Inside Nonconforming Markets

News Briefs

S. 1217, the Housing Finance Reform and Taxpayer Protection Act of 2014, would decrease federal deficits by a total of $58 billion from 2015 to 2024, according to the Congressional Budget Office. The Senate Committee on Banking, Housing, and Urban Affairs approved the legislation to reform the government-sponsored enterprises earlier this year but the full Senate has yet to consider the bill and there is little support for the legislation in the House.


September 12, 2014 - Inside Nonconforming Markets

FHFA Proposes Booting REITs From FHLBanks

The few real estate investment trusts that currently have access to advances from the Federal Home Loan Banks would lose their ability to tap the attractive funding source under a proposal last week from the Federal Housing Finance Agency. The FHFA said the proposed rule is necessary because REITs with captive insurance companies pose risks to the FHLBank system. “FHFA is taking these actions to address supervisory concerns about certain institutions that are ineligible for FHLBank membership, but that are using captive insurers as vehicles through which they can obtain FHLBank advances to fund their business operations,” the federal regulator said.


September 12, 2014 - IMFnews

What We're Hearing: A Mortgage M&A (Mini) Tidal Wave? / A Vendor Shakeup as Well? / 34 LOS Vendors? / It’s Hard Breaking Into Subservicing / Walter, the Best of the Three / The CFPB Wasn’t Even There!

The days of the megabanks – Wells Fargo, JPMorgan Chase and Bank of America – buying mortgage companies (of any size) are over. Never again. Right?...


September 12, 2014 - IMFnews

MI Firms Aren’t the Only Ones That Want Changes to FHFA ‘Eligibility’ Rules

As written, the proposed rules from the FHFA could cause mortgage insurance premiums to spike.


September 12, 2014 - Inside MBS & ABS

Post-Crash High in Prices Paid for Distressed Mortgages May Lead to More Securitizations

Investors are paying up for distressed mortgages these days, fueling talk that the market might see more in the way of securitizations. “Buyers of non-performing loans want to securitize,” said Brian Dunn, senior vice president of MountainView Capital Group. “They like the [real estate mortgage investment conduit] structure.” According to Dunn, the securitization of nonperforming mortgages “has taken off...


Poll

Over the next six months we plan to hire this many more additional loan officers:

1 to 10 (We're being careful.)
11 to 30 (We're optimistic.)
More than 30 (We're in a growth mode as the banks get out.)
We're cutting back. (Are you nuts? It's ugly out there.)

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