Sens. Mark Warner, D-VA, and Mike Rounds, R-SD, in late August introduced bipartisan legislation amending the CFPB’s ability-to-repay rule to expand financing options for self-employed mortgage borrowers. The CFPB’s qualified-mortgage rules have relatively strict requirements which make it difficult for borrowers who don’t have traditional income sources to obtain mortgage credit. But the Self-Employed Mortgage Access Act of 2018 would expand ...

It’s just a matter of time, but it appears that Republican Kathy Kraninger, a career government worker, will become the next permanent director of the Consumer Financial Protection Bureau. In late August, the Senate Committee on Banking, Housing, and Urban Affairs approved Kraninger’s nomination by a party-line vote of 13 to 12. The approval, though close, was not a surprise. “There is nothing significantly controversial about her candidacy that will change ...

The Department of Treasury has signaled that the CFPB should work with other federal agencies and state regulators to create consistent mortgage servicing regulations across the industry. In a recent report on nonbank issues, Treasury expressed its concern regarding inconsistency in mortgage servicing regulations that could create compliance headaches for residential loan processors while increasing costs. “In light of that, the CFPB is taking the lead ...

A Democratic lawmaker on the House Financial Services Committee is recommending that the CFPB include financial technology (fintech) companies in its complaint database to protect small business borrowers from discrimination. Rep. Emanuel Cleaver, D-MO, last year launched a survey to study the use of automated algorithms in loan applications in order to determine whether fintechs protect companies from unintentional discrimination. Many fintech lenders argue ...

Dozens of military and veteran groups are urging Acting CFPB Director Mick Mulvaney not to weaken military lending protections. Thirty-eight groups – including the National Military and Veteran Alliance, the Student Veterans of America, and the Air Force Sergeants Association – in late August sent a letter to Mulvaney and Defense Secretary James Mattis calling for continued strong enforcement and supervision of the Military Lending Act. “We urge you to stand with ...

The CFPB late last month announced 2019 changes in dollar thresholds for several provisions under Regulation Z, implemented under the Truth in Lending Act. The bureau adjusts those amounts annually based on the percentage change reflected in the Consumer Price Index. The adjustments would affect the Credit Card Accountability Responsibility and Disclosure Act of 2009, the Home Ownership and Equity Protection Act and the ability to ...

The CFPB recently refused to set aside or modify a civil investigative demand filed against a debt collection company, the latest sign that the bureau is being tough in pursuing certain investigations, said attorneys.The CFPB filed two CIDs in 2017 under former Director Richard Cordray against Firstsource Advance regarding debt collection issues. The company then sought to set aside or modify the bureau’s second CID, but the agency denied the petition ...

The CFPB announced that it will hold a day-long symposium, “Building a Bridge to Credit Visibility,” to explore challenges many consumers face in getting credit. This event will take place on Sept. 17 in the CFPB’s Washington, DC, headquarters, and will be streamed live. The CFPB said the symposium “will convene a diverse set of stakeholders to explore challenges in overcoming barriers to expand fair, equitable, and non-discriminatory access to credit [Includes three briefs] ...

For many depositories, there’s a significant mismatch between their reported mortgage banking income and what’s on their call reports…

Mortgage lenders selling loans to Fannie Mae and Freddie Mac had to repurchase fewer defective loans in the second quarter of 2018, according to a new Inside The GSEs analysis. GSE sellers repurchased $226.84 million of home loans during the second quarter or provided some other form of indemnification. That was down 5.8 percent from the first three months of the year and represented the lowest quarterly buyback total since the fourth quarter of 2016. Freddie repurchases were up 5.3 percent from the first quarter, while Fannie’s fell 17.6 percent. On a year-to-date basis, combined GSE buybacks were down 7.2 percent from the first half of 2017. Again, Fannie volume was down, Freddie’s was up.