Regulations

Browse articles from all of our Newsletters related to Regulations.

July 29, 2016 - Inside FHA/VA Lending

Around the Industry

USMI Names MGIC Chief as Chairman. U.S. Mortgage Insurance has tapped Patrick Sinks, chief executive of MGIC Investment Corp., to be the trade group’s new chairman. Sinks succeeds USMI Chairman Rohit Gupta, president and CEO of Genworth Mortgage Insurance. Sinks served previously as USMI’s vice chairman. Bradley Shuster, chairman/chief executive for NMI Holdings, will take overNew Reverse-Mortgage Product. California Mortgage Advisors has expanded its reverse-mortgage menu, with the addition of a non-FHA reverse mortgage option of up to $6 million for select clients. With the new product, CMA joins a handful of private reverse-mortgage lenders that will consider properties valued up to $6 million. Last year, American Advisors Group, the largest Home Equity Conversion Mortgage lender, announced its AAG Advantage lending program, which features the ...


July 29, 2016 - Inside FHA/VA Lending

FHA Improves EAD Portal to Make Working with Appraisals Easier

FHA has announced updates to the Electronic Appraisal Delivery (EAD) portal and FHA Connection (FHAC) to make it easier for entities to view and work with appraisal reports. The latest improvement would ensure that EAD portal users, lenders/underwriters in particular, are approving appraisal reports for the FHA case number assigned to them. The FHA also released guidance regarding case transfers in relation to appraisal reports in the EAD portal and FHA Connection. If, prior to case transfer, the original mortgagee uploaded an appraisal, the new mortgagee to whom the case was transferred will be unable to view the appraisal in EAD. Hence, the new mortgagee must obtain a copy of the appraisal from the original mortgagee and submit it through the EAD portal. The original mortgagee must first transfer the case number to the new mortgagee in FHAC. Once the case transfer is complete, the ...


July 29, 2016 - Inside FHA/VA Lending

Fannie Mae Allows Use of HUD Housing Counselors for 97 LTVs

Fannie Mae has announced new enhancements to its 97 percent loan-to-value mortgage product, including acceptance of FHA-approved housing counseling, to help attract more borrowers.The improvements would expand access to HomeReady, which allows borrowers to pay as little as 3 percent down on a home purchase. The 3 percent may include income from non-borrower household members. Fannie said it would accept one-on-one, pre-purchase counseling from providers that have been approved by the Department of Housing and Urban Development for FHA borrowers. The goal is to help conventional borrowers meet HomeReady’s homeownership education requirements. Later this year, Fannie will offer lenders a $500 credit to encourage borrowers to take advantage of the housing counseling option to help sustain long-term homeownership. In addition, Fannie simplified income-eligibility requirements for ...


July 29, 2016 - Inside FHA/VA Lending

VA Further Clarifies Guidance on TRID, Other Policy Handbook Items

We pick up where we left off last issue with the Department of Veterans Affairs attempting to clarify certain guidance in the VA Lender Handbook. ? If the TRID (Truth in Lending/Real Estate Settlement Procedures Act Integrated Disclosures) closing disclosures change after the veteran signs [the form], should the lender require the veteran to sign it again? VA: The short answer is yes. The lender is required to provide the TRID closing disclosure no later than three business days before consummation. The lender is required to provide a corrected closing disclosure to the borrower three days before consummation or closing in certain instances, and at or before consummation if other types of changes occur, such as adjustment of costs or credits. Therefore, any changes made that require an amended disclosure must have the borrower’s signature. ? Is the Amendatory Clause mandatory for all ...


July 29, 2016 - Inside FHA/VA Lending

Source of Funds: Top Reason for High Unacceptable Findings in 1Q

Unverified funds and undocumented deposits are the leading causes of high initial unacceptable findings in a post-endorsement review of a sampling of FHA-insured loans, according to the Department of Housing and Urban Development. Source-of-fund issues were found in 9.8 percent of FHA loans in the first quarter of 2016, up from 9.0 percent in the fourth quarter of 2015. The percentage of loans with such problems fell to 2.0 percent after going through loss mitigation. Specifically, auditors either found undocumented large deposits or deposits that are from unacceptable sources. In addition, auditors found loans in which borrower funds fell short of the minimum investment requirement or actual funds to close an FHA loan. Inadequate borrower funds or reserves were also found in certain loans that were run through the TOTAL Scorecard, invalidating them for FHA approval. The ...


July 29, 2016 - IMFnews

CFPB Unveils TRID ‘2.0’ Proposal. No Additional Cure Provisions

The CFPB went on to say its proposal does not – and cannot – address every concern that has been brought to the agency’s attention since the rule first came out.


July 29, 2016 - Inside FHA/VA Lending

HUD to Look into IG Allegations of Illegal Practices in DPA Programs

The Department of Housing and Urban Development will look into certain downpayment-assistance practices that the department’s inspector general alleged are improper or unlawful. In a recent note to FHA lenders, FHA Commissioner Ed Golding said HUD would look into any inappropriate practices, including the extent to which government-sponsored downpayment-assistance programs disclose loan terms to borrowers. In addition, HUD will investigate IG allegations of inappropriate fees or costs being charged to borrowers, as well as reports of steering and coercion of borrowers, said Golding. In the note, Golding reiterated HUD’s support for government-backed DPA programs that enable families to access credit for purchasing homes. The note also carried a statement from HUD Deputy Secretary Nina Coloretti, which reiterated the department’s support for government-backed DPA programs. Coloretti also clarified a memorandum on DPA issued by Golding back in May, which, she said, “may have been misinterpreted by some to endorse otherwise unlawful practices.” She said HUD does not endorse such practices.


July 29, 2016 - Inside FHA/VA Lending

CIT Group Adds $230 Million to Loss Reserves Due to HECM Losses

CIT Group this week revealed that it was shoring up loss reserves tied to a reverse mortgage servicing operation it absorbed as part of its acquisition of OneWest Bank and its parent holding company, IMB HoldCo., last August. The loss of $167 million in discontinued operations relates to Financial Freedom, a reverse mortgage servicing subsidiary of OneWest Bank, which CIT shut down in December last year. In an earlier filing with the Securities and Exchange Commission, CIT management identified a material weakness in Financial Freedom related to estimates of the interest-curtailment reserve in its Home Equity Conversion Mortgage portfolio. The flawed estimates apparently have resulted in a material misstatement of CIT’s consolidated financial statements. Due to a change in estimates, and taking into consideration an investigation being conducted by the ...


July 29, 2016 - Inside FHA/VA Lending

FHA Condo Bill Nears Enactment, Lenders More Eager for HUD Rule

Senate legislation that would make it easier to obtain FHA financing for condominium projects has been sent to the president for signature, though lenders seem to be more eager for long-anticipated condo reform guidelines from the Department of Housing and Urban Development. Senate lawmakers unanimously approved H.R. 3700, the “Housing Opportunity through Modernization Act,” before Congress retired for the August recess. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers said the bill would essentially codify FHA condo-financing guidelines, which HUD recently drafted and are currently undergoing clearance at the Office of Management and Budget. Under H.R. 3700, the FHA would be required to establish and implement a recertification process that is substantially less burdensome than the ...


July 29, 2016 - Inside FHA/VA Lending

FHA, VA Begin Insuring Mortgages On Properties with PACE Liens

The FHA and VA are expanding their guarantees to residential properties with superior PACE (Property Assessed Clean Energy) liens, but certain clarifications must be made before the market will really open up, according to legal experts. Under newly issued guidance, the FHA and the VA will begin insuring mortgages on qualified residential properties encumbered by PACE liens in support of a White House initiative to make clean energy and energy upgrades available to low- and moderate-income homeowners. PACE programs are available in 19 states and in the District of Columbia and have enabling legislation in 32 states, plus Washington, DC. Such programs provide financing for home improvements that enable homeowners to make energy and water use more efficient and less costly. The financing, however, is not like a traditional loan product. Homeowners repay the PACE financing through a ...


July 29, 2016 - Inside FHA/VA Lending

FHA Bursts over $1 Trillion in June As New Issuance Exceeds Runoff

Despite quickening refinance activity, the FHA single-family market soared over the $1 trillion mark in loans pooled in Ginnie Mae mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis. A record $1.001 trillion of FHA single-family loans made up the lion’s share of collateral backing Ginnie MBS as of the end of June. That was a 1.3 percent increase from the previous quarter and a 5.5 percent gain from the midway point in 2015. Steady growth in FHA loans helped push Ginnie single-family MBS to $1.576 trillion outstanding, topping Freddie Mac for second place in the agency market. The VA loan guaranty program was still the fastest-growing corner of the government-insured market, with total VA loans in Ginnie pools up 3.8 percent from March and 16.7 percent higher than a year ago. The actual amount of FHA and VA loans outstanding is somewhat ... [ 4 charts ]


July 29, 2016 - IMFnews

What We’re Hearing: Is the CFPB to Blame? / Or Maybe the Math Doesn’t Work / If Only the C&I Market Would Return / NAR is Happy with TRID 2.0 / Subprime Lending Continues to Hum / What’s Wrong with a 7 Percent Mortgage?

Fannie Mae recently updated its loan production estimates. The GSE projects $1.78 trillion in originations this year and $1.55 trillion next year.


July 25, 2016 - Inside the CFPB

CFPB Fines Santander Bank $10M Because of Overdraft Practices

In a warning to other lenders on the importance of proper vendor oversight, the CFPB recently brought a $10 million enforcement action against Santander Bank, based in Wilmington, DE, because of its allegedly illegal overdraft services practices. Among the practices at issue, the bureau said the bank signed up consumers for overdraft services without their consent. “In some instances, Santander’s telemarketer briefly described [the bank’s] Account Protector [service] to consumers, then asked for the last four digits of their Social Security numbers, and enrolled them without their consent,” said the CFPB. “In other instances, consumers said they did not want to enroll but requested information about the overdraft service, but the telemarketer enrolled them anyway,” the bureau added. Also, call ...


July 28, 2016 - IMFnews

Short Takes: Will the Last Jumbo Securitizer Left in the Business Please Turn Off the Lights / A Positive Word on Ocwen / Ocwen’s Irony / A Tidbit on One of MBA’s New Members / Strong MI Results for Arch

JGWHL’s parent company was recently delisted by the New York Stock Exchange…


July 28, 2016 - Inside Mortgage Finance

Small Banks Remain Just as Active Under CFPB’s Servicing Rules, GAO Finds

Small community lenders such as banks and credit unions not only have remained active in the mortgage servicing space under the Consumer Financial Protection Bureau’s mortgage-servicing rules, their market share of 13 percent in 2015 was double what it was in 2008 after the financial crisis, according to a new report from the Government Accountability Office. The largest community banks and credit unions accounted for most of the growth in the share of servicing by community banks and credit unions, the report said. Many of the representatives from 16 community lenders that GAO interviewed said...


July 28, 2016 - Inside Mortgage Finance

Government Offers Peek at What Future Post-Crisis Foreclosure Prevention Programs Should Look Like

As federal programs to help underwater borrowers are phased out, government agencies want the mortgage industry to pick up where it left off to help troubled homeowners avoid foreclosure. They suggested that future programs be accessible, affordable, sustainable, transparent and have sufficient accountability. The Federal Housing Finance Agency, Department of Treasury, and the Department of Housing and Urban Development released a report this week that discussed what future loss mitigation programs should look like and lessons learned. The Home Affordable Modification Program and related federal initiatives will sunset at the end of 2016. “With the formal end of the crisis-era programs, the mortgage servicing industry will shoulder...


July 28, 2016 - IMFnews

CIT Unveils $230 Million of ‘Additional’ Reserves Tied to Reverse Mortgage Business; HUD Probe Continues

Financial Freedom’s operation is the subject of an investigation being conducted by the HUD IG's office...


July 28, 2016 - IMFnews

Time Running Out on July Release of ‘TRID 2.0’; NAR Weighs In

TRID 2.0 could arrive in early August instead…


July 27, 2016 - IMFnews

Servicers Wonder How Much Time the CFPB Will Give Them on New Rules

“We have a pretty good idea of what the bureau is going to do in substance,” said Donald Lampe, a partner in the financial services group at Morrison & Foerster…


July 27, 2016 - IMFnews

Small Commercial Banks Quietly Amassing MSR Market Share

Smaller depositories held 8.0 percent of the banking industry’s total mortgage servicing assets in 2015, up from a share of less than 2.0 percent as recently as 2009.


July 26, 2016 - IMFnews

Short Takes: Ginnie Mae MSR Demand: Deadly Slow? / FHFA IG Says Agency Shirking Its Duty / Summer Foreclosure Rates Looking Good (for Consumers) / Prepayment Speeds Spike / A New Hire at NCB

The IG accused the FHFA of shirking its responsibility to effectively examine Fannie Mae and Freddie Mac...


July 26, 2016 - IMFnews

GOP Lawmakers Request Outside Review of the FHFA Inspector General

Sen. Grassley pointed out that production decreased after Wertheimer’s tenure began in September 2014 with just three audit reports produced in 2015.


July 25, 2016 - Inside the CFPB

Calendar Update

CFPB Debt Collection Field Hearing This Week. The CFPB plans to convene a public field hearing July 28 on debt collection issues, at a location in Sacramento, CA, that has yet to be announced. The field event is to feature remarks by CFPB Director Richard Cordray, followed by a panel discussion with consumer advocates and industry representatives, and concluding with testimony from members of the public. The hearing, which is scheduled to begin at 11 a.m. PDT, is expected to be livestreamed at consumerfinance.gov. Congress is Now in Recess. The U.S. Senate and House of Representatives have recessed for the summer and are scheduled to return...


July 25, 2016 - Inside the CFPB

Other News in Brief

CFPB Makes Some Senior Staff Changes. Last week, the CFPB announced some senior-level staffing changes. Among them, Chris D’Angelo, currently the bureau’s chief of staff, will serve as the associate director for supervision, enforcement and fair lending. He joined the CFPB in June 2011 and previously served as senior advisor to the director and as an attorney in the Office of Enforcement. D’Angelo came to the bureau from the U.S. Treasury Department, where he was senior advisor to the undersecretary for domestic finance and worked on financial regulation. Richard Lepley, currently the deputy general counsel for general law, ethics and oversight, will assume the position of principal deputy general counsel in the office of the general counsel in the legal division.


July 25, 2016 - Inside the CFPB

Briefly Around Capitol Hill

GOP Legislation Would Exempt Small Nonbank Lenders from CFPB Examination, Enforcement. Rep. Roger Williams, R-TX, recently introduced H.R. 5907, the Community Mortgage Lenders Regulatory Act of 2016, which would exempt qualifying smaller, “responsible” nonbank lenders from CFPB examinations and primary enforcement authority. To qualify, a nonbank mortgage lender must have net worth of less than $50 million; have originated fewer than 25,000 loans or $5 billion in loans the preceding year; and have originated at least 95 percent of their mortgage loans as qualified mortgages the last three years. As currently applies to most banks, a qualifying “responsible community lender” would not be subject...


July 25, 2016 - Inside the CFPB

Legal Challenges to Cordray's Recess Appointment Rejected

In State National Bank of Big Spring, Texas, et al. v. Lew, et al., the U.S. District Court for the District of Columbia has shot down the latest attempt to void the actions taken by CFPB Director Richard Cordray while he was still a recess appointee. At issue are several CFPB rulemakings, such as those having to do with electronic fund transfers, integrated mortgage disclosures, escrow requirements, ability to repay/qualified mortgages, and mortgage servicing. On July 18, 2011, President Obama first nominated Cordray to serve as director of the bureau. When the Senate took no action on that nomination, Obama appointed him to the position on Jan. 4, 2012, invoking his...


July 25, 2016 - Inside the CFPB

CFPB Reiterates its Argument in Remanded Spokeo Case

In May, the Supreme Court of the United States ruled in Robins v. Spokeo, Inc. that a plaintiff has to demonstrate that he or she suffered “concrete” and “real” harm in order to have standing under Article III of the U.S. Constitution to successfully sue for statutory damages under the Fair Credit Reporting Act. The CFPB has previously argued that is not necessarily so, and with the SCOTUS remanding the case back to the U.S. Court of Appeals for the Ninth Circuit, the bureau has recently reiterated its argument in an amicus brief with the lower court. The specific question in this case is whether the plaintiff (Robins) identified an injury-in-fact under Article III of...


July 25, 2016 - Inside the CFPB

'Portfolio QM' Proposal Faulted by Advocate, Praised by Lenders

A proposal from House Republicans to treat mortgage loans held in a bank’s portfolio as qualified mortgages received divergent reviews at a recent hearing by the House Financial Services Committee. The proposal was included in the Financial CHOICE Act sponsored by Committee Chairman Jeb Hensarling, R-TX. Treating mortgages in bank portfolios as QMs would provide QM status to loans that would otherwise fail to meet those standards, including interest-only products and mortgages not eligible for sale to the government-sponsored enterprises Fannie Mae and Freddie Mac because the debt-to-income ratios are above 43.0 percent. Adam Levitin, a professor of law at Georgetown University Law Center, said the Financial CHOICE Act would “eviscerate” consumer protections in mortgage lending.


July 25, 2016 - Inside the CFPB

Pending Mortgage Servicing Amendments = More Changes

With finalized amendments to the CFPB’s mortgage servicing rules due to be released within the next several weeks, one of the big issues for servicers will be just how much time the bureau grants them to implement all the necessary changes to their loan administration systems. “We have a pretty good idea of what the bureau is going to do in substance,” Donald Lampe, a partner in the financial services group in the Washington, DC, office of the Morrison & Foerster law firm, told Inside the CFPB. “And so the question is going to be, what is the implementation time period going to be so that these changes can be fully implemented?”


July 25, 2016 - Inside the CFPB

Look to the Courts to Rein in Five Year-Old CFPB, Attorney Advises

Last week marked the five-year anniversary of the birth of what is arguably the single most powerful, pro-consumer regulatory agency in the history of the United States: the CFPB. According to former CFPB enforcement attorney Jennifer Lee, now a partner at the international law firm Dorsey & Whitney, the CFPB has achieved a tremendous number of milestones in a short amount of time. “Between promulgating new regulations, bringing a multitude of enforcement actions, including ripening cases…


July 25, 2016 - Inside the CFPB

GOP Platform Aims to Abolish CFPB Or Change Its Structure, Funding

Last week, at their national convention in Cleveland, the Republicans issued their 2016 campaign platform, which featured some particularly sharp rhetoric towards the CFPB. The GOP called for either getting rid of the agency in the broader context of repealing and replacing the Dodd-Frank Act, or at least altering the bureau’s leadership structure and its funding mechanism. If they can’t abolish the CFPB outright, the Republicans want to replace the current single directorship with a bipartisan commission and subject the bureau to the congressional appropriations process in lieu of its funding from the Federal Reserve. “The worst of Dodd-Frank is the CFPB, deliberately designed to be a rogue agency,” the platform stated.


July 25, 2016 - Inside the CFPB

TRID Issues to Require Due Diligence Reviews in MBS

Non-agency mortgage-backed security issuers and investors were getting more comfortable in recent years with third-party due diligence reviews of less than 100 percent of the mortgages in an MBS due to the exceptionally strong performance of new originations. However, analysts at Morningstar Credit Ratings suggest that most non-agency MBS backed by new mortgages will be subject to full reviews due to uncertainty regarding the CFPB’s integrated-disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act, otherwise known as TRID. The reviews help identify and cure compliance issues and protect MBS investors from TRID-related losses. “Most post-crisis transactions carry out due diligence on every loan, and we...


July 25, 2016 - IMFnews

Greenwich-Based Investment Advisor Reveals 8.3 Percent Stake in PHH

Who is Silver Point and why does it now own so much of PHH?


July 25, 2016 - IMFnews

Small Banks and Nonbanks Rally Around Bill that Provides CFPB Relief

The Community Mortgage Lenders of America said the bill strikes a balance of maintaining safe lending while freeing up resources so more consumers can obtain a mortgage.


July 25, 2016 - IMFnews

In a Move to Boost Liquidity, Ginnie Will Update ‘Acknowledgment’ Agreement

Several large banks accept the current acknowledgement agreement, while others avoid it like the plague.


July 22, 2016 - Inside The GSEs

FHFA, GSE Concerns with PACE Loans Continue to Loom

The Federal Housing Finance Agency remains resistant to taking on Property-Assessed Clean Energy loans despite this week’s announcement that the FHA will allow PACE loans. PACE programs provide financing for home energy improvements and water conservation, repaid through an assessment added to the property’s tax bill. FHA’s new guidance addresses state programs where the PACE obligation is treated like a property tax with priority over an FHA mortgage lien.However, like other mortgage industry critics of PACE loans, FHFA Director Mel Watt, said he continues to have “serious concerns” with how PACE programs are financed.


July 22, 2016 - Inside The GSEs

GOP Platform Released, Seeks to Limit Fed Involvement in Housing

This week, the Republicans adopted their official platform and called the GSE conservatorship a “corrupt” way of doing business. The GOP said the Great Recession devastated the housing market and caused taxpayers to pay billions of dollars to rescue Fannie Mae and Freddie Mac. They blame Democrats in Congress and the Obama administration for preventing efforts to reform the GSEs since they’ve been in conservatorship. “Their corrupt business model lets shareholders and executives reap huge profits while the taxpayers cover all loses,” the platform said. While vague in taking a stance on what should be done with Fannie and Freddie, the platform simply stated that the utility of both agencies should be “reconsidered.”


July 22, 2016 - Inside MBS & ABS

Industry Reps Hope CMBS Bounces Back After Implementation of Risk-Retention Rules is Complete

Industry experts agree that the commercial MBS market is not going to live up to expectations of $100 billion of issuance this year, but they are hopeful the market will rebound after the industry fully implements the Dodd-Frank Act risk-retention rules that take effect Dec. 24, 2016. According to Kenneth Cheng, managing director of CMBS ratings services for Morningstar Credit Ratings, there is much uncertainty in the CMBS market about the actual impact of the risk-retention requirements. “I think everybody has agreed that it will be a negative impact – it’s just the magnitude of that impact that is uncertain,” he told Inside MBS & ABS this week. “It’s going to drive up the cost of CMBS – how much is anybody’s guess.” Also, as the cost of issuing CMBS increases, profit margins will...


July 22, 2016 - IMFnews

Lenders Prevail in Effort to Limit Liability on Data Submissions to State Regulators

State regulators had removed a clause from previous forms which said information from the submitting lender was “to the best of my knowledge, information and belief.”


July 21, 2016 - Inside Mortgage Finance

FHA to Insure Certain Mortgages with PACE Liens; MBA, California Realtors Dissatisfied with Guidelines

The FHA this week clarified its policy on insuring mortgages with PACE (Property Assessed Clean Energy) senior tax liens to make it easier for borrowers to obtain FHA financing for such mortgages, but the mortgage and real estate industries continue to have concerns. The new guidelines address state programs where the PACE obligation is treated like a property tax with priority over an FHA lien. The program provides financing for home-energy improvements and water conservation, and is repaid through an assessment added to the property’s tax bill. The guidelines are designed...


July 21, 2016 - Inside Mortgage Finance

Small Banks and Nonbanks Applaud H.R. 5907, Seek Relief from Increased Regulatory Oversight

Smaller banks and nonbanks are rallying behind legislation recently introduced to relieve community mortgage lenders from some of the scrutiny placed on larger banks. Rep. Roger Williams, R-TX, authored H.R. 5907, the Community Mortgage Lenders Regulatory Act of 2016, and emphasized that community mortgage lenders engaged in traditional mortgage lending were not responsible for the recent mortgage crisis. Scott Olson, director of the Community Home Lenders Association, told...


July 21, 2016 - Inside Mortgage Finance

Senate Unanimously Approves FHA Condominium Bill, But Industry Interest is on HUD Condo Reform Guidelines

The U.S. Senate last week passed legislation easing FHA rules on condominium financing even as condo reform rules are undergoing clearance at the Office of Management and Budget. H.R. 3700, the Housing Opportunity Through Modernization Act of 2016, was approved by unanimous consent. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers say the bill would essentially codify long-anticipated guidelines the Department of Housing and Urban Development has drafted. Among other things, the bill requires...


July 21, 2016 - Inside Mortgage Finance

GAO Lists Possible Barriers Preventing Wider Use of Private Flood Insurance, Regulatory and Competition Concerns

The Government Accountability Office said regulatory uncertainty and other barriers may inhibit the use of private flood insurance. The Flood Insurance Market Parity and Modernization Act, H.R. 2901, which passed the House unanimously in April, expands flood insurance options by including private flood insurance. The bill also lifts certain federal restrictions placed on insurance companies and gives states more flexibility to license and regulate private flood insurance. The GAO reported...


July 21, 2016 - IMFnews

Happy (?) Birthday as the CFPB Turns Five; Keep an Eye on the Courts

While Republicans continue to work toward decreasing the CFPB’s powers, former CFPB enforcement attorney Jennifer Lee suggests that with a divided Congress, the most significant power over the CFPB could be in courts.


July 20, 2016 - IMFnews

Lenders Express Concern About New PACE Guidelines for FHA Mortgages

The new guidance includes a number of provisions, including a requirement for lenders to escrow PACE payments to protect the FHA from losing collateral in a tax sale.


July 20, 2016 - IMFnews

TRID Issues Likely to Require Due Diligence Reviews of All Loans in New Non-Agency MBS

Analysts at Morningstar Credit Ratings suggest that most non-agency MBS backed by new mortgages will be subject to full reviews due to uncertainty regarding the TILA-RESPA Integrated Disclosure rule.


July 19, 2016 - IMFnews

NCRC Study Finds Racial Disparities in Mortgage Lending in Midwest Cities

To help address racial disparities in lending, the NCRC called for expansion of the Community Reinvestment Act, stronger enforcement of the CRA and strengthening of the government-sponsored enterprises’ affordable housing goals.


July 15, 2016 - Inside FHA/VA Lending

Around the Industry

CA Legislature Poised to Pass Protections for Widowed Homeowners. The California legislature is a step away from enacting legislation that would extend existing foreclosure protections in the state Homeowners Bill of Rights (HBOR) to widows, widowers and other heirs of deceased homeowners. The legislature passed the HBOR in 2012 to provide due process protections to homeowners and establish rules and procedures for communication between servicers and borrowers regarding options to avoid foreclosure. However, the bill’s protections did not extend to surviving spouses and successors-in-interest who may wish to continue paying the mortgage loan but could not assume the loan or afford the payment with the loss of the deceased homeowner’s income. Surviving family members may then seek a loan assumption or modification, only to be refused by the servicer because their names are not on the ...


July 15, 2016 - Inside FHA/VA Lending

VA Discusses Steps in Challenging, Resolving Adverse Audit Findin

The Department of Veterans Affairs has spelled out steps for disputing and resolving audit findings with the agency. The VA Home Loan Guaranty program has a policy-resolution protocol in place to increase both consistency among the VA regional loan centers (RLC) and responsiveness to lender inquiries. In seeking to resolve an audit dispute with an RLC, the lender should first consult the VA Lender’s Handbook before contacting the VA. Lenders also are encouraged to check with colleagues who might be familiar with issues underlying the dispute. The lender should contact the RLC with jurisdiction for an official response to case-specific questions. When disputing an audit finding or a deficiency letter, the lender should contact the loan specialist who conducted the audit. If, after communicating with the loan specialist, the dispute remains unresolved, the lender should take its concern to ...


July 15, 2016 - Inside FHA/VA Lending

VA Breaks Down, Explains NPS, Timely Payments, Handbook Issues

The Department of Veterans Affairs has clarified policies that have raised questions among VA lenders but were not addressed during the agency’s annual lender conference in San Diego, CA, back in May. ? What is the VA’s policy regarding a non-purchasing spouse’s (NPS) credit? VA: The NPS’s liabilities need to be considered but not its credit history. ? What is VA’s policy regarding a loss that an NPS reports on a joint tax return? If a joint tax return shows a business loss, then that loss will have to be deducted from the veteran’s income in both community and non-community property states. What is reported to the Internal Revenue Service must be used when applying for a federally guaranteed loan In a situation where a couple has been faced with business losses, the veteran and his or her spouse may want to consider both being on the loan in order to potentially qualify. ? The VA Pamphlet states: “Account balances reduced to ...


Poll

The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.
Better by 11% to 25%.
Off the charts better. Applications are great now.
Worse than 1H, but not by much.
A lot worse. But not sure on the damage.

vote to see results
Housing Pulse