Regulations

Browse articles from all of our Newsletters related to Regulations.

March 24, 2017 - Inside The GSEs

FHFA Amends Freedom of Information Act Regulation

The Federal Housing Finance Agency issued an interim rule last week that changed some of the components of its Freedom of Information Act regulation, including the fee categories. The interim rule gives notice about the circumstances in which the FHFA can extend its response time to the FOIA request and tells when it should notify the person requesting the information about their right to seek dispute resolution services. In the new FOIA rule, the agency is required to provide a minimum of 90 days for requestors to file an administrative appeal and must notify requesters about available dispute resolution services.


March 24, 2017 - Inside The GSEs

Adverse Examination Findings Redefined for 2017 Exam Cycle

For the 2017 examination cycle, the Federal Housing Finance Agency recently issued an advisory bulletin for new classifications of adverse findings for the GSEs and the Federal Home Loan Banks. Three designated classifications were established to help examiners define the issues more effectively with hopes of a faster remediation plan. When communicating adverse examination finds to the regulated entities and Office of Finance, the FHFA said the examiners will classify them as either “matters requiring attention, recommendations or violations.” MRAs are broken down into two separate categories: critical supervisory matters and deficiencies. The difference boils down to the nature and severity of the issues requiring corrective action, according to the bulletin.


March 24, 2017 - Inside The GSEs

Pence’s Economist Hints at GSE Reform Principles in the Works

Vice President Mike Pence’s chief economist said the Trump administration is working on GSE reform principles. The comments came this week during a government relations summit hosted by the American Bankers Association. Mark Calabria, former director of financial regulation studies at the Cato Institute, caused a media frenzy when during a general session he said that a “set of principles” on GSE reform is likely to emerge in the coming months. Calabria is not a proponent of the GSEs, and believes that without Fannie Mae or Freddie Mac, commercial banks would step in to fill the liquidity void for the simple reason they have so much in the way of “excess reserves.”


March 24, 2017 - IMFnews

What We’re Hearing: No GSE Capital in Nine Months / But Don’t Sweat It / Mel Knows / Fairholme’s Bad Bet on Sears / Impac Borrows Against Fannie Mae MSRs / Blend’s Clients Include Movement Mortgage

Not only does Fairholme own Fannie and Freddie shares, it has an investment in Sears, the troubled department store chain...


March 24, 2017 - IMFnews

With Trump in Power, the CFPB is Hardly Bashful About Pressing Enforcement Actions

Presumably the bureau is going to keep bringing enforcement actions like this until a final resolution is reached curbing its authority, the attorney noted…


March 24, 2017 - Inside MBS & ABS

MBS Trading Volume Weak in February as Demand Declines; Market Nervous About Stocks, Trump’s Business Agenda

The average daily trading volume in agency MBS declined to $202.4 billion in February, one of the worst readings over the past six months, according to figures compiled by the Securities Industry and Financial Markets Association. In January, volume was a bit healthier at $229.8 billion, but that was before concerns began to mount about President Trump’s business agenda and how successful the new White House might be in rolling back regulations – financial and otherwise. As Inside MBS & ABS went to press this week, fears were...


March 24, 2017 - IMFnews

A New Low for Walter’s Share Price: 64 Cents

When Walter Investment released fourth quarter results last week it declined to hold a live earnings call – somewhat of a rarity…


March 24, 2017 - IMFnews

Proposal to Curb ‘Rating Shopping’ Met with Skepticism

Esaki and White propose allowing issuers to choose any number of rating services to submit credit support levels for a particular MBS or ABS, paying a bid-preparation fee for each estimate.


March 23, 2017 - IMFnews

Short Takes: GSE CSP Update: The UMBS will Arrive in 2Q19 / They Spent How Much on This Thing? / Cherry Hill REIT Taps the Equities Market / Freddie Mac Director Bolts for the Federal Reserve Bank of Atlanta

The CSP project comes with a cost: roughly $454 million has been spent so far...


March 23, 2017 - Inside Mortgage Finance

CFPB Moving Vigorously Ahead with Enforcement Actions, as Prospect Mortgage RESPA Case Reveals

With the enforcement of the Real Estate Settlement Procedures Act at stake, and a hostile occupant in the Oval Office, the Consumer Financial Protection Bureau is certainly not being bashful about continuing its regulation-by-enforcement modus operandi. The recent enforcement action against Prospect Mortgage is just the latest example. According to Colgate Selden, a partner in the Washington, DC, office of the law firm of Alston & Bird, the case is important because “it indicates the CFPB is moving full-speed ahead regardless” of the recent court rulings in PHH v. CFPB. This case is...


March 23, 2017 - IMFnews

A Change in the GSE PSPAs Coming Soon? Don’t Bet on It…

Waiting for a change in the GSE PSPAs is like waiting for Godot...


March 23, 2017 - Inside Mortgage Finance

Trump Administration Urges Court in PHH Case To Ditch CFPB ‘Removal Only for Cause’ Provision

The Trump administration late last week filed its amicus brief with the U.S. Court of Appeals for the District of Columbia Circuit in PHH Corp. v. Consumer Financial Protection Bureau, and, as expected, sided with the lender this time around, but didn’t go as far as some had hoped it would. In its brief, the Department of Justice argued in support of eliminating the removal-only-for-cause protection that currently applies to the director of the CFPB. However, whereas PHH has argued that the CFPB be eliminated in its entirety, the Trump administration argued in favor of retaining the CFPB, but with a director removable at the will of the president. Currently, the director may be removed...


March 23, 2017 - IMFnews

Nationstar Mortgage EVP and CFO Robert Stiles Departs

In early March, Stiles filed notice to sell 11,931 shares of Nationstar common at a price of $18.40 a share or $219,530.


March 23, 2017 - IMFnews

SFIG Plots Next Steps in Effort to Revive Non-Agency MBS Market

SFIG’s said its RMBS 3.0 task force will be holding calls during the next two weeks to discuss ongoing work in the latest areas of focus…


March 23, 2017 - IMFnews

VA Considering Stronger Measures to Stop Early Solicitation of Purchase Loans for Refis

There have been scattered reports that some lenders and brokers are still chasing quick-turn refis aided by secondary market investors offering to buy and securitize those loans.


March 22, 2017 - IMFnews

Wall Streeter Phillips to Play ‘Critical’ Role at Treasury on GSE Reform; GSE ‘Principles’ Coming Soon from Trump?

Calabria joined the Trump administration from the conservative Cato Institute and is no fan of the GSEs...


March 22, 2017 - IMFnews

PHH Counsel Theodore Olson Lays Out Steps to Make the CFPB ‘Constitutional’

For the CFPB to pass the constitutionality test, its director needs to be removable by the president of the United States...


March 21, 2017 - IMFnews

Short Takes: Coming Soon: Falling Interest Rates? / Walter Gets Smacked Down Again / Embrace Sends its Top LOs to Boca / CoreLogic’s $5 Million Man (Rounded) / A New Hire for Silver Hill

All totaled, the new CoreLogic chief could earn almost $5 million...


March 20, 2017 - IMFnews

Serial Rapid Refinancing on VA Loans Continues. Is There a Cure?

MBA’s Pete Mills noted there are a handful of lenders and brokers that specialize in quick-turn refis…


March 20, 2017 - IMFnews

DOJ Filing Reveals Trump Wants to Keep the CFPB, but with a ‘Removable’ Director

Attorneys with the Ballard Spahr law firm noted that, “If the DOJ gets its way, the CFPB would remain intact with a director that President Trump can replace at any time.”


March 17, 2017 - Inside FHA/VA Lending

Around the Industry

HUD Secretary Ben Carson Launches National Listening Tour in Detroit. Housing and Urban Development Secretary Ben Carson began a national listening tour March 15 at Benjamin Carson High School in Detroit. Carson’s three-day visit to his hometown gives him an opportunity to hear directly from HUD field personnel and stakeholders who rely upon and support public housing. This week, President Trump released his proposed preliminary FY 2018 budget, which showed among other things a drastic $6.2 billion reduction in funding for public housing assistance and affordable housing. HUD did not release an itinerary of Carson’s listening tour. IG Seeks Changes to Ginnie Mae’s Management Hierarchy, Staffing. Ginnie Mae’s outdated organizational structure and staff levels have made it difficult for the agency to properly monitor and mitigate the risk posed by the increasing number of nonbanks participating in ...


March 17, 2017 - Inside FHA/VA Lending

Utah FHA Lender Pays $4.25 M to DOJ, HUD to Resolve Fraud Claims

Security National Mortgage Co. of Salt Lake City has paid $4.25 million to the Department of Housing and Urban Development to settle allegations of failing to comply with FHA loan requirements. Security National, a retail lender, has been an FHA-approved direct endorsement lender since October 1993, the year it was founded. The settlement resolves a joint civil investigation by the HUD Office of the Inspector General, Department of Justice and the U.S. Attorney’s Office for the District of New Jersey into Security National’s FHA origination and underwriting practices in connection with 100 FHA-insured loans. As part of the settlement, the lender “agreed it engaged in certain conduct in connection with its origination and underwriting of the loans.” The HUD OIG provided no details about the investigation. The OIG said the loans that were certified as compliant would not have been insured had ...


March 17, 2017 - Inside FHA/VA Lending

HECM Originations Down in 2016, December Spike Slowed Descent

Production of Home Equity Conversion Mortgage loans was down in 2016 with an estimated $14.9 billion originated last year, compared to $16.0 billion the previous year. Year-over-year, total HECM volume fell 6.4 percent. Purchase loans accounted for 85.9 percent of FHA-insured reverse mortgages produced over the 12-month period. Originations, however, rose by 8.0 percent in the fourth quarter from the previous quarter due to a spike in HECM lending in December. Purchase HECMs with an adjustable rate appeared to be the product of choice among HECM borrowers in 2016. American Advisors Group continued to dominate the market, closing 2016 with $2.1 billion in HECM originations for a 14.0 percent market share. One Reverse Mortgage was the second top HECM producer of the year with $855 million, while Reverse Mortgage Funding was in third place with $649.8 million. Liberty Home Equity Solutions hung on ... [ 1 chart ]


March 17, 2017 - Inside FHA/VA Lending

Trump Proposes Drastic Cuts to 2018 HUD Discretionary Spending

The Trump administration has proposed deep budget cuts in 2018 for the Department of Housing and Urban Development and the U.S. Department of Agriculture, but whether the agencies’ critical housing insurance programs would be affected is unclear. The cuts are part of the administration’s plan to reduce non-defense discretionary spending dramatically in order to fund increased defense spending and President Trump’s southern border wall, and to bring down a projected $9.4 trillion U.S. deficit over the next decade.Released this week, the preliminary 2018 budget seeks $40.7 billion in gross discretionary funding for HUD, $6.2 billion or 13.2 percent lower than the department’s approved spending in 2017. The $47.3 billion in discretionary budget authority enacted for fiscal 2017 does not include offsetting receipts from FHA and Ginnie Mae, which lowered the congressionally appropriated cost for ...


March 17, 2017 - Inside FHA/VA Lending

USDA Securitization Rose in 2016, Chase Home Continues to Lead

Approximately $18.8 billion in rural housing loans with a U.S. Department of Agriculture guarantee were delivered into Ginnie Mae pools in 2016, according to an analysis of Ginnie data. Securitization of USDA loans was up 3.9 percent from the previous year. Fourth quarter production, however, was off 10.3 percent from the prior quarter, slowing down production of USDA loans during the period. Ditech Financial, which ranked 15th among the top Ginnie Mae issuers of mortgage-backed securities backed by USDA loans, ended 2016 with $284.9 million. That was up a staggering 4712.9 percent from 2015. Chase Home Finance led the market with $3.6 billion in 2016, despite hefty declines quarter-over-quarter and year-over-year. Second-ranked PennyMac closed the year with a total volume of $2.1 billion, while Freedom Mortgage, in third place, reported $2.0 billion, a whopping ... [ 1 chart ]


March 17, 2017 - Inside FHA/VA Lending

Georgia Appeals Court Finds for Wells Fargo in Provisional Win

A Georgia appellate court recently handed Wells Fargo Bank a provisional win in a lawsuit in which a VA borrower alleged breach of contract and wrongful foreclosure. In Wells Fargo Bank, N.A., d/b/a Wells Fargo Home Mortgage v. LaTouche, the court ruled that Wells did not breach its duty to the borrower to comply with VA foreclosure regulations. The court concluded that the trial court had erred in denying Wells Fargo’s motion for summary judgment as to the defendant’s claims for wrongful foreclosure that hinged upon the same VA regulations. The reversal stemmed from Wells Fargo’s request for an interlocutory review of the trial court’s denial of its motion for summary judgment on defendant Michael LaTouche’s claims for breach of contract, wrongful foreclosure and “surprise. An interlocutory review is undertaken when a question of law must be answered by an appellate court before ...


March 17, 2017 - Inside FHA/VA Lending

Quicken Loans Notches First Win After Court Narrows Scope of Case

A favorable court ruling on the statute of limitations for filing claims under the False Claims Act gave Quicken Loans its first win in a closely watched government case involving allegedly fraudulent FHA loans. Judge Mark Goldsmith of the U.S. District Court for the Eastern District of Michigan dismissed portions of the Department of Justice’s lawsuit against Quicken in a March 9 decision, narrowing the lender’s potential liability for FHA losses. The losses were blamed on sloppy underwriting, fraudulent certification and loan performance. The DOJ said the FHA would not have knowingly insured the loans had it known they were defective. The DOJ and the Department of Housing and Urban Development’s inspector general began an investigation of Quicken’s FHA lending activities in April 2012. The investigation encompassed some 246,000 FHA loans, which Quicken originated from ...


March 17, 2017 - Inside FHA/VA Lending

Correspondent Channel Lost Some Share of Gov’t Market in 2016

Correspondent mortgage originators account for an unusually large share of FHA and VA lending, but the channel lost some market share in 2016, according to a new analysis by Inside FHA/VA Lending. Correspondent production accounted for 53.2 percent of the $275.14 billion of government-insured mortgages originated by a diverse group of lenders that included the top players in the market. That was a significantly bigger correspondent share than was seen in the conventional-conforming market (42.6 percent) or the jumbo space (16.2 percent). However, the 2016 figure was down from a 57.8 percent correspondent share of FHA/VA lending back in 2015, the first year for which data are available. Correspondent originations of government-insured lending by the group were up 31.1 percent from 2015, but their total FHA/VA lending jumped 42.3 percent. The retail share rose ... [ 1 chart ]


March 17, 2017 - Inside FHA/VA Lending

Serial Rapid Refinancing Continues As VA, MBA Explore Potential Cures

Solicitation of VA purchase loans for streamline refinancing within weeks of closing is apparently continuing despite Ginnie Mae’s efforts to stop the harmful practice. The Mortgage Bankers Association has expressed concern that guidance on pooling eligibility for streamlined refinance loans, which Ginnie issued in October last year, was far less effective than expected. Although the aggressive refinancing trend has slowed due to Ginnie’s action, there are still “pockets of that activity” being reported, said Pete Mills, MBA senior vice president. Refinancing a veteran’s purchase mortgage less than six months after its origination is not in the vet’s best interest because it strips equity from the house and results in higher financing costs, said Mills. While the rapid refi trend involves only a small number of loans in Ginnie mortgage-backed securities pools, investors do not get the full benefit of their investment because of early prepayment. Mills said there are a handful of lenders and brokers that ...


March 17, 2017 - IMFnews

Did QE Put the Fed in a Box from Which it Can’t Escape?

An interview this week with Peter Schiff, CEO of Euro Pacific Capital and a perennial critic of the Federal Reserve, suggests that the extraordinary level of support the U.S. central bank gave to the housing and mortgage markets in the wake of the financial crisis may mean the Fed is stuck between a rock and a hard place.


March 17, 2017 - Inside MBS & ABS

HUD IG Calls for Changes in GNMA’s Structure, Monitoring to Reduce Risk Posed by Nonbanks

Ginnie Mae’s outdated organizational structure and staff levels have made it difficult for the agency to properly monitor and mitigate the risk posed by the increasing number of nonbanks participating in its MBS programs, according to the Department of Housing and Urban Development’s inspector general. In a recent briefing paper, HUD Inspector General David Montoya highlighted challenges Ginnie faces in monitoring nonbanks, adding that HUD is currently being audited by the IG to gauge its capacity to track and supervise nonbanks, said Montoya. Ginnie acknowledged...


March 17, 2017 - Inside MBS & ABS

Former SEC Official Warns Some Horizontal Risk- Retention Practices Won’t Fly With Regulators

Industry practices that are developing around risk-retention requirements for MBS and ABS might be rejected by federal regulators, according to a former special counsel at the Securities and Exchange Commission. The Dodd-Frank Act established risk-retention requirements for various types of MBS and ABS. The rule generally requires sponsors of a security to retain at least 5.0 percent of the issuance, in an effort to align the interests of issuers with the interests of investors. Among the options to comply with risk-retention requirements, sponsors can retain...


March 16, 2017 - Inside Mortgage Finance

Credit Reporting Changes Could Spur Mortgage Lending as Consumers’ Scores Are Elevated

The three major credit bureaus plan to exclude two critical pieces of negative information from their reports, which may make it easier for some borrowers to qualify for a mortgage. Many tax liens and civil judgments, which can weigh down a credit score, will be removed. As part of a multi-year plan to alleviate incorrect information, on July 1, Equifax, Experian and Transunion will apply new public record standards when it comes to collecting and the timely updating of civil judgments and tax liens, the Consumer Data Industry Association said this week. The new standard will apply...


March 16, 2017 - Inside Mortgage Finance

Detroit Court Ruling in Government’s FHA-Related Case Against Quicken Loans Narrows Lender’s Potential Liability

A recent decision by a federal judge in Detroit dismissing portions of the Department of Justice’s FHA-related claims against Quicken Loans will shrink the lender’s liability under the False Claims Act, according to a legal expert. In a decision rendered March 9 on the closely watched case, U.S. District Judge Mark Goldsmith narrowed the scope and timeframe for which the DOJ can pursue any recovery or settlement against Quicken Loans for FHA losses allegedly due to faulty underwriting and loan default performance. It is the first major decision since the DOJ’s suit was transferred from federal court in Washington, DC, to federal court in Detroit last year. The DOJ and the Department of Housing and Urban Development’s Office of the Inspector General began...


March 16, 2017 - IMFnews

PHH Corp. Continues Defense in CFPB RESPA Dispute

PHH Corp. and related parties again made a full defense of their position in their legal struggle with the CFPB over alleged misconduct under the Real Estate Settlement Procedures Act.


March 16, 2017 - IMFnews

CFPB Sticks Nationstar With $1.75M Fine for Flawed HMDA Reporting

The Consumer Financial Protection Bureau fined Nationstar Mortgage $1.75 million this week for allegedly violating the Home Mortgage Disclosure Act.


March 15, 2017 - IMFnews

Nationstar in the CFPB’s Crosshairs Over HMDA Reporting

Nationstar, the residential mortgage servicer, revealed recently it is being investigated by the CFPB over issues related to complying with the Home Mortgage Disclosure Act....


March 15, 2017 - IMFnews

Another Day, Another Executive Order

President Trump began the week by signing yet another executive order to roll back the reach of the federal government – this one promoting “a comprehensive plan for reorganizing the executive branch.” But unlike some of the earlier EOs from the White House, the odds seem to be higher that this one may apply to the Consumer Financial Protection Bureau....


March 14, 2017 - IMFnews

AGs from 15 States Back PHH in CFPB Case, Citing Constitutional Issues

The AGs claimed that the CFPB’s governance structure violates the separation of powers in ways that directly undermine the interests of federalism.


March 13, 2017 - Inside the CFPB

Other News in Brief

Nationstar in the CFPB’s Crosshairs Over HMDA Reporting. Nationstar, the residential mortgage servicer, revealed recently it is being investigated by the CFPB over issues related to complying with the Home Mortgage Disclosure Act.... Non-Agency MBS Issuers Like the Legal Protection of the ATR. Congressional Republicans may be working on legislation to repeal and replace many regulations required by the Dodd-Frank Act, but some issuers of mortgage-backed securities are actually pushing to maintain some of the regulations.... Trump Executive Order on Regulatory Red Tape Unlikely to Apply to CFPB. Will the Bureau Comply Anyway? The executive order that President Trump signed in the middle of February that requires every federal agency to establish a regulatory reform task force to eliminate red tape probably does not apply to the CFPB, according to industry experts....


March 13, 2017 - Inside the CFPB

CFPB Rules Have Hindered, May Yet Help, Adoption of E-Mortgages

Mortgage lenders’ efforts at compliance with post-financial crisis regulation, largely from the CFPB, shifted their focus from fully implementing e-mortgage processes but also helped them develop the necessary technology to move forward with them in the future, according to a new report from analysts at Moody’s Investors Service. “Following the crisis, lenders focused on adapting technology to implement regulations such as the ability-to-repay [qualified mortgage] rule and the TILA-RESPA Integrated Disclosure rule rather than on e-mortgages,” the analysts said. “The implementation of those regulations has, however, led to advancements in the technology needed to originate e-mortgages by providing, for example, a seamless data feed between the mortgage loan application and the disclosure documents.” Further, “Some lenders and servicers have also ...


March 13, 2017 - Inside the CFPB

CFPB Official Warns Borrowers About Subprime Mortgages

Individuals with bad or no credit who are thinking about taking out a mortgage should proceed with caution if a lender has offered them a subprime loan, an official from the CFPB advised recently. In a blog posting last week, Megan Thibos, a policy analyst with the CFPB’s mortgage markets team, talked about the homebuying process for people with poor credit scores. Thibos suggested that borrowers should review their credit scores, make sure their credit reports are correct, and work to rebuild their credit. Then she detailed various mortgage options available to borrowers with poor credit, focusing on FHA mortgages. That was followed by “a warning about subprime mortgages.” Thibos said subprime mortgages have significantly higher interest rates than prime ...


March 13, 2017 - Inside the CFPB

TRID Triggered Most 2016 Mortgage QC Headaches

The CFPB’s integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act proved to be the primary source of mortgage lenders’ quality control (QC) headaches in 2016, the first full year of the rule’s implementation, a new industry report concluded. According to a review of thousands of post-close QC audits performed by MetaSource, a Utah-based third-party mortgage compliance service provider, TRID accounted for 12 of the top 15 findings of QC issues. The six most frequent findings were issues with TRID requirements. The single most frequent issue involved correspondence of information listed in the Calculating Cash to Close table on page 3 of the closing disclosure (CD) to the information cited on the last ...


March 13, 2017 - Inside the CFPB

House OKs Measure Mandating OMB Review of Major CFPB Regs

The Republican-controlled U.S. House of Representatives recently passed H.R. 1009, the OIRA Insight, Reform, and Accountability Act, legislation that would require the Office of Management and Budget to examine major rulemakings – those projected to have an impact of $100 million or more on the economy per year – by independent agencies, including the CFPB, prior to issuance. The measure, introduced earlier this year by Rep. Paul Mitchell, R-MI, would codify many executive orders and practices of the federal government related to the process of issuing federal regulations. Those instructions require agencies in the executive branch to analyze the impacts of regulations (including costs and benefits), to coordinate with the Office of Information and Regulatory Affairs (OIRA) during the rulemaking process, and ...


March 13, 2017 - Inside the CFPB

RESPA Experts See Positive Elements in CFPB Consent Orders

With legal briefs continuing to be filed in PHH Corp. v. CFPB, mortgage experts on the Real Estate Settlement Procedures Act see a bit of a silver lining, along with multiple warnings, in the handful of consent orders the CFPB brought against other industry defendants on the RESPA front. Earlier this year, the CFPB brought a $3.5 million enforcement action against Prospect Mortgage, accusing the firm of illegal kickbacks for mortgage business referrals from two real estate brokers, and in an unusual twist, a mortgage servicing operation. The bureau also acted against ReMax Gold Coast and Keller Williams Mid-Willamette, the brokers, and Planet Home Lending, the mortgage servicer – all of whom it accused of taking illegal kickbacks. During an exclusive ...


March 13, 2017 - Inside the CFPB

Appeals Court Blocks State National Bank from PHH Case

The years-long legal battle that PHH Mortgage and PHH Corp. have been waging with the CFPB continues to take sudden and unexpected turns. One recent example: PHH filed a brief in opposition to the plaintiffs in State National Bank of Big Spring, Texas, et al. v. Lew from intervening in the mortgage lender’s case with the CFPB. …


March 13, 2017 - Inside the CFPB

PHH Corp. Makes its Case Again In RESPA Dispute with CFPB

PHH Corp. and related parties again made a full defense of their position in their legal struggle with the CFPB over alleged misconduct under the Real Estate Settlement Procedures Act. PHH made five primary arguments to the U.S. District Court of Appeals for the District of Columbia Circuit, the first of which was that the CFPB is unconstitutionally structured and must be invalidated. …


March 13, 2017 - Inside the CFPB

Multiple State AGs Detail Their Support of PHH in Case With CFPB

The attorneys general of 15 states came to the defense of PHH Corp. and related parties in their case with the CFPB over the agency’s interpretation and enforcement of the Real Estate Settlement Procedures Act. The AGs of Alabama, Arizona, Arkansas, Georgia, Idaho, Indiana, Kansas, Louisiana, Missouri, Nevada, Oklahoma, South Dakota, Texas, West Virginia and Wisconsin focused on the constitutional issues in the case, with not a single mention of the statutory questions related to the act. The AGs made three major arguments in support of PHH’s position. First, they asserted that the separation of powers plays a critical role in preserving the division of authority within the federal system, and the CFPB’s governance structure violates the separation of powers ...


March 13, 2017 - Inside the CFPB

The Government, As Expected, Switches Sides in PHH Case

The Trump administration has subtly signaled its support for PHH Corp. in the mortgage lender’s long-running dispute with the CFPB over alleged violations of the Real Estate Settlement Procedures Act. In recent days, the Department of Justice asked the U.S. Court of Appeals for the District of Columbia Circuit for permission to file an amicus brief in the case by March 17, one week after the deadline the court had given PHH to file its response to the court’s decision to grant the CFPB’s request for an en banc rehearing. The court has since granted the administration’s request for the one-week extension. In its request, the Justice Department said, “As this court recognized in calling for the views of the ...


March 13, 2017 - IMFnews

Request from Consumers for Changes to Phone-Contact Standards Would Interfere with Mortgage Business, CMC Warns

Anne Canfield cautioned that if the FCC adopts the changes requested in the petition, lenders would largely be prohibited from calling distressed borrowers.


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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