More than 68 percent of mortgage defects reported in 2016 involved TRID-related and/or loan package documentation issues, according to the latest mortgage quality control industry trends report from ACES Risk Management (ARMCO). “In 2016, the entire lending industry was impacted by the enhanced regulatory oversight of the CFPB as the long-awaited implementation of TRID was fully realized,” the report noted. “Many lenders spent the better part of the first quarter addressing the multitude of mistakes associated with TRID.” In some instances, this produced loans that could not be sold on the secondary market. “A wave of corrective action followed, and soon the sheer amount of resources directed at solving these issues became overwhelming for many lenders,” ARMCO added. The top...

House Fires Shot Across CFPB’s Bow, Passes Financial CHOICE Act. The GOP-controlled House of Representatives followed through on the majority’s often expressed intention to largely eviscerate the CFPB, passing H.R. 10, the Financial CHOICE Act, the Republican alternative to the Dodd-Frank Act. The measure passed on a vote of 233-186. All eyes now turn to the Senate Banking, Housing and Urban Affairs Committee, where Mike Crapo, R-ID, will play a pivotal role in Republican efforts to roll back the bureau. “Today’s passage of the Financial CHOICE Act is a significant and thoughtful effort to improve our financial regulatory system,” Crapo said after the vote. “Many of the provisions in this legislation are responses to the failures and consequences of Dodd-...

Counterparty risk appears to be on the mind of the FHFA…

There will likely be more buyback demands on the 2015 book of business in the future, but the total may not ever get to even 0.1 percent of issuance.

CFPB Director Cordray has responded with a detailed account that differs with the committee staff report in a number of ways...

Deal agent compensation likely would include additional fees for less common, more intensive work…

The Fannie Mae portion of the MSR sale is expected to close sometime in the third quarter.

Fairholme is scheduled to talk about its investment in Fannie Mae and Freddie Mac...

Third-party oversight is becoming more of a focus of regulators these days, according to some top compliance professionals, and one of the most important emerging themes is an increasing regulatory emphasis on staff expertise. “This is something that [all the regulators] are thinking about,” Krista Shonk, vice president and senior regulatory counsel at the American Bankers Association, said during a presentation early last week at the ABA’s annual regulatory compliance conference in Orlando. Staff expertise includes things such as the ability to perform proper due diligence analysis and contract management and oversight.But personnel also need to avoid any attempts to transfer their institution’s inherent responsibility for compliance with laws and regulations. On the other hand, lenders should not put ...

Mortgage repurchases and indemnifications on loans sold to Fannie Mae and Freddie Mac surged higher in the first quarter of 2017, according to a new Inside The GSEs analysis of disclosure reports filed with the Securities and Exchange Commission. Sellers repurchased or indemnified the GSEs for losses on $238.6 million of home loans during the first three months of the year. That was up 15.1 percent from the fourth quarter of 2016. But it’s a drop in the bucket compared to the amount of single-family business Fannie and Freddie do. In 2015, for example, the two GSEs issued $824.76 billion of single-family mortgage-backed securities.