State Regulators

Browse articles from all of our Newsletters related to State Regulators.

December 5, 2014 - Inside FHA Lending

FHA to Share in Landmark BofA Settlement

The FHA and Ginnie Mae will share in the record-setting $16.7 billion settlement between Bank of America, the Department of Justice and certain other federal agencies and six states to resolve claims related to mortgage fraud and toxic mortgage-backed securities. The FHA will receive approximately $800 million and an undisclosed amount for consumer relief from BofA. The bank was accused of falsely certifying poorly underwritten loans for FHA insurance, resulting in huge losses for the agency. It is unclear how much Ginnie Mae’s share would be from the settlement. “As a direct endorser of FHA-insured loans, Bank of America performs a critical role in home lending,” said U.S. Attorney Loretta Lynch for the Eastern District of New York during the announcement of the global settlement in August. “In obtaining a payment of $800 million and sweeping relief for troubled homeowners, we have not ...

December 4, 2014 - Inside Mortgage Finance

State Regulators Increase Reporting Requirements, Focusing on Servicing and Qualified Mortgages

State-regulated lenders and servicers will be required to report new information on servicing and originations to regulators beginning in the first quarter of 2015. Lenders weren’t able to win many concessions from the Conference of State Bank Supervisors, which proposed reporting changes for the Nationwide Mortgage Licensing System & Registry’s Mortgage Call Reports in October. The State Regulatory Registry, a subsidiary of the CSBS that operates the NMLS on behalf of state regulators, positioned the reporting requirements as part of an effort to reduce regulatory burden for lenders. “A goal of the MCR is...

November 26, 2014 - Inside Mortgage Finance

Witnesses at House Subcommittee Hearing Favor Bill to Open Flood Insurance Market to Private Carriers, Brokers

The National Flood Insurance Program has been great in providing federal flood insurance coverage to homeowners in high flood-risk areas, but the huge losses incurred by the program during Hurricane Katrina and super-storm Sandy indicate it is time to shift the risk to the private sector, according to industry experts. During a hearing on flood insurance legislation by the House Financial Services Subcommittee on Housing and Insurance last week, experts urged lawmakers to stop funneling all flood risk through the NFIP and open the door to private flood insurance providers. The hearing focused...

November 26, 2014 - Inside Mortgage Finance

Mortgage Industry Braces for Nonbank Capital ‘Standards’ From State Regulators; How Binding Will They Be?

Nonbank mortgage servicers are bracing for an onslaught of new capital recommendations from the Conference of State Bank Supervisors, which could see the light of day in early 2015. But the industry did receive one piece of good news: although the CSBS is working on what it calls “options for prudential standards,” the organization will not be addressing capital for nonbank originators, a CSBS official told Inside Mortgage Finance. The group is...

November 21, 2014 - Inside Nonconforming Markets

Ocwen, Wells Cancel Planned Servicing Transfer

The servicing transfer from Wells Fargo to Ocwen Financial that had been on hold for more than eight months was cancelled last week by the two firms. Scrutiny from the New York Department of Financial Services prompted Ocwen to place the transfer on hold in February. The transfer was first announced in January and would have involved servicing on non-agency mortgage-backed securities with an unpaid principal balance of $35.9 billion along with $3.3 billion in mortgages serviced for ...

November 20, 2014 - Inside Mortgage Finance

Wells Expected to Keep MSRs Once Destined For Ocwen, At Least for a Little While

Wells Fargo is not expected to take new bids – at least anytime soon – on a highly delinquent $39 billion non-agency servicing portfolio that Ocwen Financial failed to buy because of all the regulatory scrutiny the nonbank is facing. However, servicing advisors who have seen some of the details on the portfolio contend that Wells may eventually try to unload the package next year, but is by no means under the gun to do so. “One thing you have to keep in mind is...

November 13, 2014 - Inside Mortgage Finance

Mixed Results for Publicly Traded Nonbanks: Ocwen, Walter, PHH in the Dog House; PennyMac and Redwood Show Promise

Although residential lenders are coming off a better than expected production quarter – and enjoying a decent last three months of the year – analysts and investors seem undecided on whether there’s opportunity in the market or it’s time to stay on the sidelines. Several high profile publicly traded shops that are considered “high touch” specialists – Nationstar Mortgage, Ocwen Financial and Walter Investment – continue to trade at steep discounts to their 52-week highs with all three facing possible class-action lawsuits from angry investors who’ve seen billions of dollars in stock equity evaporate over the past year. And then there’s...

November 10, 2014 - Inside the CFPB

CSBS Should Delay MCR Changes Pending CFPB Rules, Groups Say

Numerous mortgage banking trade groups from across the U.S. urged the Conference of State Bank Supervisors to hold off on making changes to the Nationwide Mortgage Licensing System mortgage call report (MCR) until after the CFPB’s Home Mortgage Disclosure Act rulemaking is final and the bureau’s integrated disclosures have been implemented. The MCR proposal, released Oct. 1, 2014, would expand the current data collected to create a new definition of “application,” and it would require reporting on the amount and count of closed loans classified as qualified mortgages under the CFPB’s ability-to-repay rule. Further, the proposal would require additional nationwide and state-specific servicing reporting, along with additional fields to capture changes in loan amount between the time of application and ...

November 7, 2014 - Inside Nonconforming Markets

News Briefs

Ocwen Financial is working on a settlement with the New York Department of Financial Services regarding various servicing-related concerns raised by the state regulator. The $100 million in legal reserves that Ocwen booked in the third quarter of 2014 for a potential settlement is the minimum the company expects to spend, according to William Erbey, Ocwen’s chairman. “I would caution that this does not mean that we have settled with the [NYDFS] ... [Includes two briefs]

November 6, 2014 - Inside Mortgage Finance

Lenders Strongly Oppose Proposal from State Regulators to Increase Reporting Requirements

A proposal from the Conference of State Bank Supervisors to increase reporting requirements on state mortgage call reports has been met with strong resistance from a number of lender trade groups. In October, the CSBS proposed collecting additional quarterly information regarding qualified mortgages and servicing, among other data submitted as part of the Nationwide Mortgage Licensing System and Registry’s mortgage call report. The comment period closed late last week. “We join...


What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

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