Regulations

Browse articles from all of our Newsletters related to Regulations.

October 31, 2014 - Inside The GSEs

Enterprise Endnotes

FHFA’s Watt Promises a CEO for the CSP by Year-end. After a year of searching for a chief executive to lead Common Securitization Solutions, the Federal Housing Finance Agency is getting closer to picking a candidate for the job. Speaking at the annual convention of the Mortgage Bankers Association in Las Vegas last week, FHFA Director Mel Watt promised the industry that a CEO would be named by Dec. 31. The FHFA’s search firm is Spencer Stuart.


October 31, 2014 - Inside The GSEs

Industry Commenters Take Aim At FHFA’s GSE Housing Goals

The Federal Housing Finance Agency may end up having second thoughts about its proposed housing goals for Fannie Mae and Freddie Mac given the room for improvement industry members cited in comment letters to the agency. Issued by the FHFA in September, the proposal would increase some of the benchmark levels for Fannie’s and Freddie’s affordable housing goals through 2017, while also establishing new housing subgoals for low-income multifamily properties.


October 31, 2014 - Inside The GSEs

Experts: Uncertain Future of GSEs Will Accelerate Turnover

With little chance of GSE reform legislation passing until 2016, Fannie Mae and Freddie Mac will continue to experience employee turnover as well as infrastructure upkeep challenges, say experts. Speaking during a conference call sponsored by GSE shareholder rights group Investors Unite this week, Matt Seu, principal with Actualize Consulting and a former Freddie vice president, warned that six years of government conservatorship have taken a toll on the institutional memories at both companies. …


October 31, 2014 - Inside The GSEs

Lenders Encouraged by FHFA Buyback Relief, Want Details

Mortgage professionals seem cautiously optimistic about new policy proposals from the Federal Housing Finance Agency on buyback relief and high loan-to-value lending, but it remains to be seen whether they will have the desired impact. Speaking at the annual convention of the Mortgage Bankers Association last week, FHFA Director Mel Watt shared some concrete details about the new “life of loan” representation-and-warranty relief and outlined a number of other changes on tap.


October 31, 2014 - IMFnews

What We’re Hearing: 40 Percent of Lenders May Disappear Via M&A? / Less Competition? / They’ll be Back / Benjamin Lawsky, a Nice Guy, Really / Provident Exiting Certain States?

One veteran mortgage trade group official, a staunch Republican no less, told us that Lawsky is an “honest and bright guy,” adding that he understands the issues.


October 31, 2014 - Inside MBS & ABS

Commercial Mortgage Securitization Up Sharply in 3Q14 As CMBS and Agency Multifamily Both Post Big Gains

A total of $51.18 billion of commercial mortgages were securitized during the third quarter of 2014 as the sector reached a new post-crisis high in new issuance, according to a new market analysis by Inside MBS & ABS. Commercial mortgage securitization rose 38.4 percent from the second quarter and represented the biggest three-month period in new issuance since the third quarter of 2007. For the first nine months of 2014, commercial mortgage securitization totaled $119.76 billion, down 24.4 percent from the same period last year. New issuance was off on a year-to-date basis because of the slump in production during the first half of 2014. Both sides of the market posted...[Includes one data chart]


October 31, 2014 - IMFnews

Industry to CFPB on Data Integrity: Your Standards Are Unrealistic

The current supervisory expectation of a near-zero error rate is virtually impossible to achieve, lenders have told the Consumer Financial Protection Bureau.


October 31, 2014 - IMFnews

Academic Weighs in on GSEs' Future: Obama Should go with an ‘Administrative’ Solution

An administrative solution is already possible within the Housing and Economic Recovery Act of 2008, which grants the FHFA authority to bring the GSEs out of conservatorship.


October 30, 2014 - IMFnews

Ocwen CEO Erbey on Potential NYDFS Settlement: $100 Million is the ‘Minimum’

Ocwen chief Bill Erbey noted that the settlement amount might be materially higher and include requirements beyond a monetary penalty.


October 30, 2014 - IMFnews

Short Takes: Ocwen’s ‘Other’ Problem / How Much Might Ocwen Pay? / A Boom in LO Hiring? / Citadel to Enter the Second-Lien Space / Strong Earnings from Radian

Ocwen Financial has a huge mismatch between the size of its $400 billion servicing portfolio and its new originations. Then again, its MSRs are running off...


October 30, 2014 - Inside Mortgage Finance

Ocwen Sets Aside $100 Million for Possible Settlement; Counterparties Cautious About Dealing With Firm

Late this week, Ocwen Financial Corp. announced that it has set aside $100 million for a possible regulatory settlement with the New York Department of Financial Services, a move that couldn’t come too soon for the troubled “high-touch” servicer. But the company also cautioned that a settlement with the NYDFS is hardly a sure thing. More-over, some Ocwen watchers believe a deal with New York could spur other state regulators to take action against the company. One consultant who has done work for Ocwen told...


October 30, 2014 - Inside Mortgage Finance

Servicing Sales Mostly on Flow Basis Now, But Observers Expect More Bank Activity Ahead

Although most of the mortgage-servicing sales in recent months have been flow transactions of new production, more banks – especially mid-tier institutions – are expected to unload servicing in response to regulatory constraints, according to experts at last week’s Mortgage Bankers Association annual convention in Las Vegas. Many banks continue to focus on capital risk management and serving their core customers, said David Hisey, executive vice president of Nationstar Mortgage, during a panel session on servicing. Many servicing transfers are driven by a desire to deal with one or both of those issues, he added. Most mortgage servicing rights transfers now are...


October 30, 2014 - Inside Mortgage Finance

Injecting Unrealistic Data Integrity Standards into HMDA Could Cause Havoc, Industry Tells CFPB

Mortgage lending industry representatives urged the Consumer Financial Protection Bureau to establish workable data integrity standards as it substantially expands reporting requirements under the Home Mortgage Disclosure Act. “Our members are committed to reporting accurate data and strive to do so, but the current supervisory expectation of a near-zero error rate is virtually impossible to achieve,” said six industry trade groups said in a joint comment letter. “As community banks and other small lenders pointed out to the bureau during the Small Business Regulatory Enforcement Fairness Act panel, the doubling of the number of reported fields can be expected to cause the error rate to increase exponentially.” Some small business participants raised...


October 30, 2014 - IMFnews

Redwood to Include More Non-QMs in its Latest Jumbo MBS

Meanwhile, 84 lenders contributed to Redwood’s pending issuance, led by First Republic Bank with a 32.6 percent share.


October 29, 2014 - IMFnews

Ocwen Sets Aside $100 Million for Potential Settlement with the NYDFS

The share price of Ocwen Financial recently fell to a 52-week low of $18.47, a 70 percent decline that has wiped out at least $5 billion in market equity.


October 29, 2014 - IMFnews

Short Takes: Redwood’s New Jumbo MBS Has Eight Non-QMs / MB Launches Sports Firm, Reveals Mortgage Earnings / Ellie Mae is Worth What? / FHFA Has a New Watchdog, Finally / Distressed RE Fund Raises a Bundle

Pacific Union Financial took in $100 million of profits. It’s not every day that a privately held nonbank tells the world what it’s earning…


October 29, 2014 - IMFnews

SIGTARP: Complaints About HAMP MSR Transfers ‘Escalating’

The SIGTARP said that since the beginning of 2013 it has received complaints from “nearly 100” borrowers regarding issues with servicing transfers, and that 84 of the calls came in 2014.


October 28, 2014 - IMFnews

Short Takes: Lower Rates Affecting M&A? / Gain-on-Sale Not So Bad / FHA May Penalize Lenders on Re-certifications / JPM and Non-QMs? / Nonbanks Love Ginnie, but is the Feeling Mutual?

Is the investment banking arm of JPMorgan Chase sniffing around the non-QM space? It sounds crazy, we know...


October 28, 2014 - IMFnews

What’s Going On? Consumers Are Complaining a Lot Less About Mortgages

Total mortgage complaints have been trending downward since they peaked at 15,239 in the first quarter of 2013.


October 27, 2014 - Inside the CFPB

Worth Noting/Comments Due This Week

It’s Official: QRM = QM. Last week, the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corp., the Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development adopted a final version of their risk-retention rule for securitized mortgages. Under the new rule, the definition of a “qualified residential mortgage” (QRM) will be no broader than the definition of the “qualified mortgage” (QM) as promulgated by the CFPB in its ability-to-repay rule. Mortgage lending industry representatives were generally pleased with the move. Independent analysts said they expected the near-term impact of the QRM to be quite limited. However, others noted that the development does place a ...


October 27, 2014 - Inside the CFPB

OIG Has High-Profile CFPB Audits Underway, Including HQ Rehab

The CFPB’s Office of Inspector General has a handful of high-profile audits or reviews of the CFPB underway, including audits of the bureau’s controversial headquarters renovation costs and its public consumer complaint database. In June 2014, the OIG completed a review and issued a letter report in response to a request from Rep. Patrick McHenry, R-NC, the chairman of the House Financial Services Subcommittee on Oversight and Investigations, regarding the CFPB’s headquarters renovation budget. “As a follow-on to this work, we are evaluating the reasonableness of the overall estimated and proposed costs for the CFPB’s headquarters renovation,” the OIG said in its latest work plan. “We will also assess the effectiveness of the CFPB’s processes and controls for approving, managing ...


October 27, 2014 - Inside the CFPB

CFPB Needs to Address ‘Rolling Delinquencies,’ ABA Survey Says

The CFPB needs to provide additional clarity on how a “rolling delinquency” triggers the 120-day delinquency period required before a mortgage servicer can begin foreclosure under the bureau’s mortgage servicing rule, the American Bankers Association said. A rolling delinquency occurs when a delinquent borrower resumes making some payments but never becomes current on the loan. In a letter to the CFPB last week, the ABA noted that in responding to inquiries as to how banks should apply the 120-day rule in rolling delinquency situations, the CFPB has informally recommended that servicers look to common interpretations of “delinquency,” which may be found in best practices, industry standards, state law and contract law. “Because borrowers have a private right of action to ...


October 28, 2014 - IMFnews

Consumer Who Benefited From CFPB Castle & Cook Case Files Class Action

In the Castle & Cook case more than 9,400 consumers received checks from the settlement with the CFPB. But one homeowner decided not to stop there...


October 27, 2014 - Inside the CFPB

CSBS Creates Mortgage Servicing Group, Lawmakers Look at Sector

The Conference of State Bank Supervisors recently formed a mortgage servicing rights task force to develop options for prudential standards for non-bank mortgage servicers. The CSBS noted that there has been a significant growth of mortgage servicing assets in non-depository servicers in recent years. The state regulators group said it is important for the states to understand how this growth should inform changes to the regulatory framework. …


October 27, 2014 - Inside the CFPB

Up to 490,000 Homeowners May be Hurt by Flawed Servicing Records

A recent study by Nationwide Title Clearing, Inc., a research and document-processing vendor for the residential mortgage industry, found that nearly half a million homeowners could be negatively affected by inaccurate servicing records. NTC found that out of 2,285,665 servicing database records that were verified against the collateral file, 24,490 loans (1.07 percent) had significant discrepancies. When viewed against roughly 49 million outstanding residential mortgages, that suggests as many as 490,000 homeowners could be affected by faulty servicer database records. “These database inaccuracies might have represented ‘acceptable risk’ in times past – but in today’s compliance-oriented landscape, such a high number of errors could bring increased scrutiny and penalties from CFPB regulators, not to mention ...


October 27, 2014 - Inside the CFPB

Castle & Cooke Now Facing Class Action From Prior Claimants

The $13 million settlement reached between the CFPB and Castle & Cooke Mortgage Co. back in November 2013 was not the end of the dispute for the mortgage lender. It now faces a possible class-action lawsuit brought by one of the aggrieved parties who had already been compensated under the terms of the settlement with the bureau. Homeowner Luis Cabrales, on behalf of himself and perhaps in excess of 9,500 similarly situated individuals, recently filed his complaint in the U.S. District Court for the Eastern District of California, Fresno Division. The class, so far, has not been certified. The legal argument is that the applicable statutes of limitation of the claims alleged in the new complaint were “tolled” (suspended or ...


October 27, 2014 - Inside the CFPB

Bureau Promulgates Final Rule On Annual Privacy Notices

The CFPB finalized its annual privacy notices rule last week, leaving it unchanged from its May proposed rule, other than some technical and clarifying revisions. The new rule creates an alternative delivery method for the privacy disclosure required every year under Regulation P (the implementation regulation of the Gramm-Leach-Bliley Act), which financial institutions will be able to use under certain circumstances. The new rule applies to both banks and those nonbanks that are within the CFPB’s jurisdiction under the GLBA. More specifically, the rule applies to “financial institutions,” as defined in Reg P. That includes banks, credit unions, mortgage companies, mortgage brokers and debt buyers. Under the CFPB’s new rule, financial institutions will be able to post privacy notices online ...


October 27, 2014 - Inside the CFPB

Student Loan Complaints Mostly Down in Third Quarter, Up YOY

After rising for two consecutive quarters, borrower complaints to the CFPB about their private student loans have dropped for the last two reporting periods, according to a new analysis and ranking by Inside the CFPB. Following up on the second quarter drop of 16.3 percent, borrower gripes fell 14.5 percent in the third quarter, the latest data from the bureau’s consumer complaint database show. Among the top 10 companies ranked by borrower grumblings, a wide variety of results could be clearly seen. Six of the top 10 saw double-digit declines during the third quarter, but two others saw increases of that magnitude, most notably Nelnet, up 33.3 percent from the second quarter. The biggest drop among the top 10 was ...


October 27, 2014 - Inside the CFPB

CFPB Criticizes Private Student Loan Servicer Performance

The CFPB’s latest Student Loan Ombudsman’s Annual Report found fault with the performance of servicers in the relatively small number of instances in which borrowers – most of whom were struggling – have complained to the CFPB (less than 9,000), out of a universe of millions of loans outstanding. Since the bureau began accepting private student loan complaints in March 2012, the largest subset of complaints stem from borrowers seeking to avoid default during a period of financial hardship, the report noted. “Most frequently, borrowers submitting complaints are seeking to modify repayment terms to obtain a payment they can actually afford,” said the CFPB. “While student loan industry participants have stated that they intend to increase the number of programs to assist ...


October 27, 2014 - Inside the CFPB

CFPB Finalizes 'Right to Cure' Loans That Exceed 3 Percent Cap

In a noteworthy concession to the mortgage lending industry, the CFPB last week finalized a “right to cure” loans in which a lender inadvertently breaches the 3 percent cap on points and fees for a loan that would otherwise be deemed a qualified mortgage under the agency’s ability-to-repay rule. Under amendments finalized this past Wednesday, if a lender discovers after the loan has closed that it has exceeded the 3 percent cap, there are limited circumstances in which it can pay a refund of the excess amount with interest to the consumer and the loan will still be considered a QM. First, the refund must occur within 210 days after the loan is made. The lender must also maintain and ...


October 27, 2014 - IMFnews

Short Takes: Try Convincing Commercial Banks About Buyback Relief / Fannie Not So Bullish / Simpler Comp Plans for LOs? / Wells Pays HECM Fine / New Correspondent Chief for Nationstar

Industry consultant Joe Garrett notes that one of his clients (back in 2003) had 52 loan officers and “about 52 comp plans”…


October 27, 2014 - IMFnews

Despite ‘Open Letter’ on Loan Mod Snafu, Ocwen’s Share Price Hits New Low

Ocwen's open letter to borrowers likely will not assuage shareholders who have lost a ton of money on the firm.


October 27, 2014 - IMFnews

Fannie Shareholders (Pre-Conservatorship) will Reap $170 Million from Settlement

The investor-plaintiffs claim that Fannie and two of the company’s former executives made false and misleading statements about the mortgage giant’s internal controls and its exposure to subprime.


October 27, 2014 - IMFnews

HUD to Let Property-Flipping Waiver Lapse

HUD believes the program’s initial objectives have been attained and that prudence and vigilance are again called for to prevent abuses.


October 24, 2014 - Inside FHA Lending

Around the Industry

FHA to Host First Briefing Session on the First Installment of the Single Family Policy Handbook. The FHA will have a webinar on Nov. 6, 2014, from 2 p.m.-3 p.m., for stakeholders in connection with the first completed section of the Single Family Housing Policy Handbook, the Origination through Post-Closing/Endorsement for Title II Forward Mortgages (Origination through Post-Closing). The new handbook is designed to make it easier for stakeholders to do business with the FHA and support greater access to mortgage credit for qualified borrowers. Once fully completed, the handbook will contain all FHA origination and underwriting policies that lenders use in making FHA-insured loans. The FHA published the first section of the handbook on Sept. 30, which becomes effective for FHA case numbers assigned on or after June 15, 2015. The agency urged lenders to ...


October 24, 2014 - Inside FHA Lending

FHA to Modify CHUMS, Develop New System

The FHA has announced plans to modify the Computerized Homes Underwriting Management System (CHUMS) while work continues on a new, improved replacement system. CHUMS provides support for automated processing, analysis and screening of appraisal documents. Specifically, it is used on first-time homebuyer loan applications, Home Equity Conversion Mortgages, Section 203(k) property rehabilitation loans, VA-certified FHA loans and other FHA-approved programs. The system is also used to assist in evaluations of borrowers’ mortgage credit and as a complement to FHA’s credit assessment tool, TOTAL Scorecard. A new Loan Application Management System (LAMS) is in development to replace CHUMS completely in about five years. In its initial release, LAMS will enable the Department of Housing and Urban Development to start collecting and incorporating ...


October 24, 2014 - Inside FHA Lending

State FHA Originations Up, Golden State Leads

Total originations of FHA forward and home-equity conversion mortgages across the U.S. and in the territories increased from the first to the second quarter, with California accounting for the lion’s share of all FHA loans produced by state. Production of FHA-insured forwards, including jumbo loans, and HECM loans during the first half of 2014 totaled $68.3 billion, a whopping 49.0 percent drop from volume reported over the same period last year. On the other hand, total originations in the 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands rose 11.5 percent quarter-over-quarter. Originations totaled $36.1 billion in the second quarter. Forward mortgages accounted for $61.1 billion of new FHA-insured loans originated during the first six months while HECMs comprised $7.2 billion of loans produced over ... [ 1 Chart ]


October 24, 2014 - Inside FHA Lending

FHA Notifying Lenders of Possible MRB Action

The FHA warned it would soon be sending notices to lenders who are overdue in completing their annual recertification packages, a rule violation that could land them before the Mortgagee Review Board for disciplinary action. Lenders who were unable to submit their recertification packages containing the required financial reports, annual recertification statements and the renewal fee payment will be receiving notices of deficiency from the FHA. FHA extended the filing deadline to June 27, 30 days after the deployment of the new Lender Electronic Assessment Portal (LEAP) system used in the lender recertification process. Traditionally, lenders were required to access both FHA Connection and Lender Assessment Sub-System (LASS) to complete the annual recertification process. LEAP will now enable lenders to complete all ...


October 24, 2014 - Inside FHA Lending

HUD to Let Property-Flipping Waiver Lapse

Buyers, sellers and real estate agents have until the end of 2014 to take advantage of the property-flipping waiver that the FHA had put in place in 2010 to increase the availability of affordable homes for first-time homebuyers and other purchasers. After Dec. 31, the Department of Housing and Urban Development will let the waiver lapse subjecting investors again to property-flipping prohibitions. Lenders say the waiver program worked well in underserved and hard-hit areas but HUD believes the program’s initial objectives have been attained and that prudence and vigilance are again called for to prevent abuses and potential losses. As a rule, the FHA prohibits “property flipping” in which a recently acquired property undergoes a minor makeover, is appraised with an artificially high value and is resold for a considerable profit. Most property flipping occurs within a matter of days, which prompted HUD to ...


October 24, 2014 - Inside FHA Lending

FHA Silent on MIP, Will Review Pricing Further

A top-ranking housing official soon to become acting FHA commissioner assured lenders that the agency is reviewing the pricing of its mortgage insurance, but made no promises during the annual convention of the Mortgage Bankers Association held this week in Las Vegas. Biniam Gebre, now the deputy assistant secretary for housing at the Department of Housing and Urban Development, said the agency “has been reviewing our premium levels on a regular basis.” He added, “I’m sure we will come back to it over the next couple months and next year.” The pricing of FHA mortgage insurance premiums “is a very important question,” Gebre said. Many in the mortgage industry have been focused on the availability of credit, but the affordability of credit is important as well, he added. “We believe we reached a tipping point when we raised premiums in response to ...


October 24, 2014 - Inside FHA Lending

GNMA Raises Net Worth, Liquidity Tests

Ginnie Mae this week provided new details to the long-anticipated plan for increased issuer net worth and liquidity and a new performance scoring method for issuer activity – changes that could adversely affect small issuers and portfolio servicers. In remarks at the Mortgage Bankers Association’s annual convention in Las Vegas, Ginnie Mae President Ted Tozer said the changes are part of a larger effort to ensure the continuing flexibility and availability of the agency’s mortgage-backed securities program to as many entities as possible. New types of issuers and counterparties have entered the agency-backed MBS market in the wake of the financial crisis, which called for adjustments and tailored approaches to the evolving housing finance market, Tozer noted. Tozer said both policy changes and staff expertise will ensure the success of ...


October 24, 2014 - IMFnews

What We’re Hearing: More Questions About Wingspan but No Answers / Are Specialty Servicers Toast? / Should Ocwen Move Its India Workers to Upstate New York? / Mortgage Company Owner Wants to Buy Baseball Team

Note to Ocwen management: every US employee is a potential mortgage customer. Think about it.


October 23, 2014 - Inside Mortgage Finance

QM ‘Right to Cure’ Approved

The Consumer Financial Protection Bureau this week finalized a rule change that allows lenders to fix inadvertent mistakes that send mortgages over the 3 percent cap on points and fees for qualified mortgages. Under the “right-to-cure” amendment, a lender can, under limited circumstances, re-fund the excess amount of interest to keep the loan a QM.


October 23, 2014 - Inside Mortgage Finance

More Focus on Nonbank Servicers

The Conference of State Bank Supervisors this week formed a task force on mortgage servicing rights to develop options for capital requirements for nonbank servicers. The task force includes representatives from nine state regulators, including the New York Department of Financial Services.


October 24, 2014 - Inside MBS & ABS

SEC Provides Some Details on Its Reg AB II Pilot Project, But Do You Really Want to Participate?

The Securities and Exchange Commission has provided more details about a pilot project to test the revised requirements for shelf registrations that are part of Regulation AB II. ABS issuers must comply with the new rules and forms, other than asset-level disclosures, no later than Nov. 23, 2015. The SEC’s Division of Corporation Finance recently invited ABS issuers to request staff review of their registration statements in draft form, prior to filing. “We will select...


October 24, 2014 - Inside MBS & ABS

Final Rule Setting Risk-Retention Requirements For Non-Agency MBS Features Broad Exemptions

Six federal regulators approved a final rule this week setting risk-retention requirements for residential MBS transactions, exempting the entire agency MBS universe and non-agency securities backed by qualified mortgages. There is not that much left. The risk-retention requirements for residential mortgages will take effect one year after the final rule is published in the Federal Register, which is expected shortly. Regulators opted to align the definition for qualified-residential mortgages with the standards established by the Consumer Financial Protection Bureau for QMs. The sponsor of a non-agency MBS that includes non-QRMs will have to retain at least 5.0 percent of the balance of the security, as required by the Dodd-Frank Act. In 2011, federal regulators proposed...


October 24, 2014 - IMFnews

Final Rule on Risk-Retention For Non-Agency MBS Features Broad Exemptions

Many lenders and some investors pushed for an alignment of QRM and QM, while other investors sought protections beyond the requirements for QMs.


October 24, 2014 - IMFnews

FHFA IG Among Growing List of Financial Regulators with Armed Agents

According to the most recently available data, 33 IG offices had roughly 3,500 agents authorized to carry firearms.


October 24, 2014 - IMFnews

Now the States Want to Develop Capital Standards for Nonbank Servicers

The new nonbank task force includes representatives from nine state regulators, including the New York Department of Financial Services where Benjamin Lawsky is the superintendent.


October 23, 2014 - Inside Mortgage Finance

FHA to Revisit Mortgage Insurance Premiums While Auditors Assess MMIF’s Improving Condition

The FHA has been reviewing the insurance premiums it charges and will do so again later this year as well as in 2015, said a top agency official, but whether this will lead to a reduction is unclear. Speaking at the annual convention of the Mortgage Bankers Association in Las Vegas this week, FHA Deputy Commissioner Biniam Gebre said the agency is “not done” with the premium issue and may revisit it in the next couple of months or perhaps next year. Gebre will temporarily replace FHA Commissioner Carol Galante, who is scheduled to leave the agency at the end of the week to join the faculty at the University of California in Berkeley. Galante headed...


Poll

What is it going to take to convince lenders to loosen the credit box (i.e., remove underwriting overlays)?

The recent rep and warranty changes announced by the Federal Housing Finance Agency should go a long way in protecting lenders from future buybacks and help expand mortgage credit.
There won’t be any significant elimination of underwriting overlays until the government stops seeking huge mortgage-related penalties and settlements from lenders.
There shouldn’t be any expansion of the mortgage credit box since looser underwriting is what caused the recent mortgage crisis.

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