Regulations

Browse articles from all of our Newsletters related to Regulations.

September 29, 2016 - IMFnews

Will the Wells Fargo Account Scandal Hit the Megabank’s Mortgage Business? Correspondent Sellers Fear ‘Reputational’ Risk

Meanwhile, other lenders said they are hearing reports of correspondent originators slowing down the sale of closed loans to Wells.


September 29, 2016 - Inside Mortgage Finance

MBA Task Force Calls for Standardized Loan Modification Processes as HAMP Winds Down

A task force convened by the Mortgage Bankers Association proposed universal principles for loan modification programs across government guarantors, the government-sponsored enterprises and perhaps non-agency mortgages. The “One Modification” standards published late last week aim to provide servicers with a “cohesive framework” to complete loan mods when the Home Affordable Modification Program largely ends after this year. “MBA’s task force recognizes...


September 29, 2016 - IMFnews

Short Takes: The Wells Fargo Barbeque, House-Style / If Hensarling is that Unhappy He Should Refi, No? / Former FDIC Chief Bair Backs Stumpf / Impac’s Marketing Costs / What, Calling a Delinquent Borrower 12 Times a Day is Too Much?

Maybe calling a delinquent borrower 12 times a day is too much...


September 29, 2016 - Inside Mortgage Finance

FHA Seeks Comment on Condominium Approval Process, Groups Laud Return of Spot Loans, Longer Certification

The FHA has issued long-anticipated rules for approving condominium developments, including the reinstatement of spot approvals and mandatory recertification of condo approvals every three years rather than the current two-year requirement. The rules are designed to make it easier for condo projects to qualify for FHA financing and for borrowers to purchase affordable single-family units with a low 3.5 percent downpayment. The comment period ends on Nov. 28, 2016. The Department of Housing and Urban Development eliminated...


September 29, 2016 - IMFnews

ALTA TRID Survey: 40 Percent of Consumers Confused by the New CD of Title Insurance

ALTA CEO Michelle Korsmo: “We’ve heard countless stories from ALTA members about consumer confusion at the closing table…”


September 29, 2016 - IMFnews

A Significant Increase in ‘Agency’ Jumbos for 2Q; GSE Loan Limit to Increase?

The baseline agency conforming loan limit likely will rise slightly next year…


September 28, 2016 - IMFnews

Short Takes: So Long to GSE Plaintiff Perry Capital / Lost Cause? / GSE Common is Cheap / RBS Settles CU MBS Case / Front-end or Back-end?

Closing the fund means that Perry Capital will have to liquidate its holdings – including its positions in Fannie and Freddie...


September 28, 2016 - IMFnews

HUD Rolls Out New Rules for Condo Projects; ‘Spot Approvals’ Reinstated

In addition, HUD proposes to vary its owner-occupancy requirement…


September 28, 2016 - IMFnews

Ginnie Mae Keeping a Close Eye on Servicing Sales, Liquidity

Ginnie Mae wants to make sure that issuers are not selling all their good loans and retaining the potential dregs…


September 28, 2016 - IMFnews

Academics Weigh In: DFA Mortgage Rules Benefitted the Wealthy

However, Georgetown University professor Adam Levitin is challenging the findings of his DC-area colleagues.


September 27, 2016 - IMFnews

Short Takes: Trump Has Some Choice Words for Janet Yellen / The CFPB Now Carries the Wells Fargo ‘Shield’ / FBR Likes MI Sector / Alt Credit Score Models? / A New CEO for New Castle

Apparently, not everyone is a fan of low rates. Take Donald Trump, for instance...


September 27, 2016 - IMFnews

Ditech Readies $300 Million ABS Backed by Servicing Advances

A few days ago, Ditech’s parent company filed an 8-K with the SEC, disclosing delinquency information on its GSE servicing portfolio.


September 26, 2016 - IMFnews

Short Takes: Trump & Hillary Mortgage Corp. / CHLA Weighs In on Front-End Risk-Sharing: No / Will ALTA Break the CFPB’s Website? / Now, Print Your Name and Personal Story Right Here

When it comes to front-end GSE risk sharing deals, just say no?


September 26, 2016 - IMFnews

Fannie Mae Rolls Out DU 10.0 Featuring ‘Trended Credit Data’

Fannie said DU 10.0 also will help borrowers who have multiple financed properties, eliminating certain eligibility overlays…


September 26, 2016 - IMFnews

Streamline Refis Causing Problems for VA, Ginnie Mae Investors

VA wants to make sure that borrowers are not making a hasty decision to refinance, said VA Acting Director Jeffrey London.


September 23, 2016 - Inside FHA/VA Lending

PACE Guidance Not Reassuring, Too Many Uncertainties, Pitfalls

New FHA guidance for dealing with mortgages with a Property Assessed Clean Energy (PACE) obligation went into effect last week but uncertainty lingers and its full impact remains to be seen, according to an industry attorney. The Department of Housing and Urban Development has issued guidance specifically allowing properties encumbered by a PACE lien to be eligible for FHA mortgage financing for both purchase and refinance loans. The department of Veterans Affairs has issued similar guidance. According to Erika Sonstroem, an attorney with the law firm Bradley Arant Boult Cummings, the PACE industry is touting the guidance in its pitches to lenders as posing no risk to mortgage investors. PACE is a program that lends money to homeowners for home-energy savings projects. It is treated much like a tax lien on a property and is included in the ...


September 23, 2016 - Inside FHA/VA Lending

VA Issues Clarifying Guidance for Manufactured, Mobile Properties

VA Home Loan Guaranty has issued clarification regarding title requirements for manufactured or mobile homes conveyed to the Department of Veterans Affairs. Effective immediately, VA is requiring proof of noteholders’ compliance with the agency’s requirements for guaranteed mobile-home financing. Foreclosure title packages that do not include the required documents will be rejected, the agency warned. Under federal law, a manufactured home must be permanently affixed and classified as real property in the state where it is located. VA will not guarantee financing if the property does not meet the criteria. To ensure that a guaranty claim is fully payable and that the holder has the option to convey the manufactured home to VA, servicers must ensure that home loans with a VA guarantee meet federal requirements. Under the clarified VA guidelines, servicers may submit the ...


September 23, 2016 - Inside FHA/VA Lending

VA Shares Pointers to Help Avoid Delays in Processing COE Requests

The Department of Veterans Affairs has made recommendations to VA lenders and borrowers calling in with questions and problems at VA regional centers to avoid long wait times and have their concerns resolved as quickly as possible. In a recent memo to lenders, the VA Loan Guaranty Service is reporting that many of its regional loan centers (RLC) are being swamped with calls due to record increases in VA originations in recent months. While this suggests that more veterans are using their housing loan benefit than ever before, the large volume of calls to VA has caused long hold times for callers and delayed processing of borrower certificates of eligibility (COE). To cut down on the waiting time, the VA urged lenders and borrowers to consider several things before making the call. First, do not call to check on the status of a COE request if there is no urgent need, like an ...


September 23, 2016 - Inside FHA/VA Lending

HUD Poised to Collect Huge FCA Settlement Funds from Lenders

The Department of Housing and Urban Development is set to receive more than $140 million in settlements with three individual lenders in connection with defective loans they originated with FHA insurance. Freedom Mortgage Corp., M&T Bank, and Land Home Financial Services all reached separate agreements this year with the Department of Justice on behalf of the HUD Inspector General to resolve the allegations. On April 15, Freedom agreed to pay $113 million, in response to charges that “it engaged in certain conduct in connection with its origination, underwriting, property appraisal and quality of certain single-family mortgages insured by FHA.” The disputed forward loans were insured by FHA between Jan. 1, 2006, and Dec. 31, 2011, which resulted in claims submitted to HUD on or before June 15, 2015. HUD incurred substantial losses when it paid claims on the ...


September 23, 2016 - Inside Nonconforming Markets

Ocwen Dominates Initial Streamline HAMP Mods

Ocwen Financial accounted for slightly more than half of the modifications completed under the new Streamline Home Affordable Modification Program offering, according to the company. Streamline HAMP mods are only available for non-agency mortgages. The program is aimed at borrowers who meet general HAMP eligibility criteria but haven’t completed a loan mod application by the time their loan is 90 days delinquent. It’s streamlined in that no income documentation is ...


September 23, 2016 - IMFnews

What We’re Hearing: GSE Loan Limits to Move Higher? / No One Feels Sorry for Wells Fargo / The King of the Cross-Sell is now the King of Pain / Maybe the CFPB Needs a Kick in the… / MBA’s Dave Stevens Doesn’t Expect Peace to Break Out / Skyline Still Hiring

Mortgage lenders, start your engines: the Fannie Mae/Freddie Mac loan limit is set to rise...


September 23, 2016 - Inside MBS & ABS

Some Issuers Still Failing Ginnie Mae’s Net Worth, Liquidity Requirements Although Cure Rate is High

There have been a number of MBS issuers that have fallen short of Ginnie Mae’s strict liquidity and net worth requirements for all participants, but tighter oversight has cured most, if not of all of the cases, according to Ginnie’s top counterparty risk chief. Speaking this week at the annual Ginnie Mae summit in Washington, DC, Zack Skochko, director of counterparty risk, said several issuers have failed liquidity audits in 2016 by not maintaining the minimum $1 million cash or 10 basis points of outstanding Ginnie securities required to participate in the agency’s MBS program. The agency also requires...


September 23, 2016 - IMFnews

Some Issuers Still Failing Ginnie Mae’s Net Worth and Liquidity Requirements, but…

Ginnie expects issuers to actively participate by issuing, servicing or subservicing agency MBS…


September 22, 2016 - IMFnews

Short Takes: Don v. Hillary. Bring the Popcorn / The Future of Fannie and Freddie? / How to Promote Homeownership / JPM Finishes the Mortgage Test Early

Meanwhile, if you want to know where Clinton and Trump stand on the issue of homeownership in America, you can review their respective party platforms...


September 22, 2016 - Inside Mortgage Finance

Liquidity, Credit Access, Regulation Remain As Chief Concerns As Ginnie Mae Stakeholders Meet to Discuss Market’s Future

With liquidity and an uncertain regulatory environment dominating this year’s Ginnie Mae summit in Washington, DC, top agency officials called on stakeholders and other market participants to stand up to the challenges posed by a rapidly evolving Ginnie marketplace. Chief among those challenges is the growing domination of the Ginnie market by independent mortgage bankers, who now account for 80 percent of the agency’s monthly issuance volume. Ginnie President Ted Tozer reiterated his concerns raised last year about the increasing number of nonbanks in the agency mortgage-backed securities market with very little experience and liquidity. In his opening remarks, Tozer acknowledged...


September 22, 2016 - IMFnews

SEC Charges Against Hedge Fund Chief Include Allegations Tied to Altisource Investment

Altisource’s stock price declined by 6.4 percent to $30.77 per share shortly after the charges were announced, but the stock has rebounded somewhat…


September 22, 2016 - IMFnews

Yellen: Fed Will Monitor Wells Fargo, Others for Consumer Harm

The Wells account and credit card scandal did not involve mortgages, but the bank is the nation’s largest overall home funder and retail originator.


September 22, 2016 - IMFnews

CFPB Chief Cordray Gives Kudos to Credit Unions on their Mortgage Performance

The improved numbers suggest that the industry’s fears those rules would crush or even depress the market somewhat were overblown.


September 21, 2016 - IMFnews

Short Takes: Hillary to Turn GSEs Into Public ‘Utilities’? / Don, Low Rates are Good / How Far Will the OCC Go? / A Lack of Ethics was the Problem / Bestborn Hires Three

So, what’s wrong with banks and financial service companies offering sales quotas? Nothing at all, if...


September 21, 2016 - IMFnews

Judge Orders Govt. to Produce More GSE-Related Docs, Shows Signs of Frustration

Margaret Sweeny, the judge presiding over the case, is growing increasingly frustrated with the government’s attempt to keep documents out of the public domain


September 21, 2016 - IMFnews

Nationstar Mortgage JV with KB Home to End; $1 Billion of Production in Limbo?

The privately held Stearns Lending is already “offering mortgage banking services” to the homebuilder’s customers…


September 20, 2016 - IMFnews

Short Takes: The Wells Fargo Senate Barbeque / The Scandal’s Effect on Wells’ Mortgage Business? / Hats Off to the Los Angeles Times / Sen. Warren Slams Stumpf / Jumbo Update

Will a potential residential mortgage customer bolt Wells Fargo because they can’t trust the bank’s employees, including its retail loan officers?


September 20, 2016 - IMFnews

Mortgage Trade Groups Fear an 'October Surprise' on the GSE CSP

“We’re extremely concerned the CSP would be transferred to a nonprofit or a corporation where the board members include executives from JPMorgan Chase or GE Capital,” CMLA's Corso said.


September 20, 2016 - IMFnews

CFPB’s TRID Rule Gets the Blame for a Rise in Mortgage Defects

In fact, these two categories are responsible for more than 75 percent of all defects.


September 19, 2016 - Inside the CFPB

Other News in Brief

Even Under Trump, Would the CFPB Be Invincible? If businessman Donald Trump wins the White House in November, the CFPB would be in the Republican’s crosshairs for sure. But the bureau’s recent consumer fraud case against Wells Fargo for opening up roughly two million deposit and credit card accounts without authorization has caused such outrage nationwide that it may very well give the controversial regulator a “shield” of sorts. At least that’s what we’ve been…


September 19, 2016 - Inside the CFPB

Bureau Goes After Another For-Profit College with Bridgepoint

First it was Corinthian Colleges, then ITT Educational Services. Now, Bridgepoint Education Inc. has been taken to task by the CFPB over alleged misconduct. Last week, the bureau brought a $31.5 million enforcement action against the for-profit post-secondary education company based in San Diego, accusing it of deceiving students into taking out private student loans that cost more than advertised....


September 19, 2016 - Inside the CFPB

Enforcement Roundup: Congress Eyes Wells Fargo After Bank Busted Over Account Scam

Wells Fargo Chairman and CEO John Stumpf will be on what is expected to be a very hot seat before the Senate Banking, Housing and Urban Affairs Committee tomorrow when he is expected to explain what went wrong at his institution that enabled employees to open more than two million deposit and credit card accounts that may not have been authorized by consumers. CFPB Director Richard Cordray is also scheduled to testify, as is Comptroller of the Currency Tom Curry and ...


September 19, 2016 - Inside the CFPB

CFPB Provides Guidance to CSBS on its Mortgage Rules

The CFPB recently provided some written guidance on its mortgage rules to the Conference of State Bank Supervisors. The guidance, in the form of a letter, highlights some of the important changes to the mortgage rules that likely apply to many of the small lenders that CSBS members supervise. The letter, a copy of which was obtained by Inside the CFPB, came in response to a meeting this spring between Texas Department of Banking Commissioner and CSBS Chairman Charles Cooper, members of the ...


September 19, 2016 - Inside the CFPB

Hensarling Bill Also Would Make Revisions to CFPB Mortgage Rules

H.R. 5983, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act by Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, has incorporated the provisions of a number of bills that have either already passed the committee or the full House of Representatives and that would affect ...


September 19, 2016 - Inside the CFPB

Lawmakers Pass Multiple Changes To CFPB, With Industry Support

Republicans on the House Financial Services Committee had enough votes, despite one defection, to pass a comprehensive alternative to the Dodd-Frank Act that includes a host of changes to the CFPB. The most significant them would be replacing the single directorship with a five-member bipartisan commission and subjecting the agency to the congressional appropriations process. The legislative vehicle they used was H.R. 5983, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act, formally introduced 10 days ago by committee ...


September 19, 2016 - Inside the CFPB

TRID Was ‘A Beast’ at First, Now ‘A Paper Tiger,’ Experts Say

It’s been almost a year now since the CFPB’s integrated disclosure rule went into effect, and industry participants across the credit spectrum appear increasingly comfortable with the new disclosure regime. But when it first came out, the rule took all the oxygen from the room and caused more fear and anxiety that, in retrospect, appears to be have been justified, according to a handful of experts in the non-prime mortgage origination space. Speaking during ...


September 19, 2016 - Inside the CFPB

TRID 1.0 Blamed for Rise in Mortgage Defects, Study finds

The CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule has been blamed for a lot, including, most recently, producing more defects in mortgage loans. According to a new industry trends report from ACES Risk Management Corp. (ARMCO), a provider of web-based audit technology solutions for the mortgage industry based in Pompano Beach, FL, the industry experienced “a significant decrease in defects” through the second quarter of 2015. However, ...


September 19, 2016 - Inside the CFPB

Life Under TRID: TRID 2.0 Raises Plenty of Issues In Minds of Industry Commenters

Industry trade groups have yet to weigh in on the CFPB’s TRID clarifying rulemaking, but the grassroots rank-and-file have, and many of them are raising more concerns and questions. For instance, Ross Miller, president of Miller Home Mortgage in Metairie, LA, complained that there are no exceptions for the three-day waiting period when there is an emergency. “I had a client whose father was quickly scheduled for open heart surgery,” he said in a comment letter. “The client was ...


September 19, 2016 - IMFnews

Credit Unions Voice Concerns over GSE CSP Project. A Level Playing Field?

NAFCU wants the FHFA to preserve existing Fannie and Freddie securities so they don’t become unmarketable after the launch…


September 19, 2016 - IMFnews

Deal Agent Concept for Non-Agency MBS Closer to Reality with Release of Sample Document

However, the sample deal agent agreement doesn’t address one of the remaining controversial issues: how much to pay for their services.


September 16, 2016 - Inside Mortgage Trends

Clinton and Trump Both Support Homeownership

Presidential candidates Hillary Clinton and Donald Trump both want to promote homeownership, but they have different views on how to go about it. The Democrats’ platform supports giving “everyone a fair shot at homeownership” in America by putting them in a financial position to own a home, and preserving the 30-year fixed-rate mortgage while “modernizing” credit score models. The GOP platform assures voters that the “American Dream” of homeownership “is not a stale slogan,” ...


September 16, 2016 - IMFnews

What We’re Hearing: How Much Will the Brits Wind Up Paying the FHFA? / Maybe Elton and McCartney Can Help / Remember Lehman Brothers? / What Will Donald Trump do with Fannie Mae and Freddie Mac? / JPM Promotes Three

And since RBS is essentially owned by the British government, any settlement money will indirectly come from U.K. taxpayers. Who knows, maybe Adele, Paul McCartney and Elton John can chip in…


September 16, 2016 - Inside MBS & ABS

Oversight Seen as Protecting Investors in Expected MBS From Marketplace Lenders, Rating Implications Unclear

Regulations and practices in the mortgage market will help protect investors in MBS backed by residential mortgages from marketplace lenders, according to Moody’s Investors Service. However, it’s not clear if the protections will be enough to offset the rating penalties often applied to originators and assets that lack historical performance records. Moody’s published its analysis last week, noting that while no residential MBS has been issued by a marketplace lender as yet, the firm expects issuance at some point. Marketplace lenders – the most prominent of which is Social Finance – connect...


September 15, 2016 - Inside Mortgage Finance

FEMA Recommends Structure-Based Approach to Assessing Flood Risk, Setting NFIP Premium Rates

The Federal Emergency Management Agency this week updated Senate lawmakers on efforts to produce more accurate flood maps and flood-risk models. A key change will shift flood-risk analysis and insurance pricing from the so-called 1 percent annual chance of flooding to the actual flood risk to the structure itself. Testifying before the Senate Committee on Banking, Housing and Urban Affairs, FEMA Administrator Roy Wright said adopting the structure-based methodology would require an entirely new approach in flood insurance rating and underwriting, including new regulatory hazard and risk products. Other witnesses at the hearing expressed support for the recommendation, saying it would remove the uncertainty caused by constantly changing flood lines in FEMA maps. The hearing is...


September 15, 2016 - IMFnews

Short Takes: Even Under Trump, the CFPB May Be Invincible / Five Years of Abuses? / Warehouse Money Available for Non-QM? / The Wild, Wild West / PIMCO-Owned Lender Hires Ex-BOK Official

Warehouse money is available from commercial banks for nonprime home mortgages, but...


Poll

After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

vote to see results
Housing Pulse