The CFPB filed a $3.3 million administrative order last week against Security National Automotive Acceptance Company, a Mason, OH-based auto lender that specializes in making loans to U.S. military personnel, accusing it of engaging in illegal debt collection practices. The order requires the company to refund or credit approximately $2.28 million to service members and other consumers who were allegedly harmed, and to pay a $1 million penalty. When the CFPB sued SNAAC in June, it alleged the company used aggressive collection tactics that took advantage of U.S. service members’ special obligations to remain current on debts. “Once service members defaulted, they became subject to repeated threats to contact their chain of command,” said the CFPB. “In many other instances, ...

Five months after Corinthian Colleges went belly up, the CFPB succeeded in convincing a federal court to enter a final default judgement against the company, bringing to an end the litigation the bureau filed back in September 2014. The bureau accused Corinthian of luring tens of thousands of students into taking out private loans to cover expensive tuition costs by advertising bogus job prospects and career services. “Corinthian then used illegal debt collection tactics to strong-arm students into paying back those loans while still in school,” the CFPB stated. In its final judgment, the court ordered that Corinthian was liable for more than $530 million and prohibited the company from engaging in future misconduct. However, since the company’s assets are ...

CFPB Retracts Cordray’s Claim About Most Jumbo Mortgages Being Non-QMs. Questions from Inside Nonconforming Markets, an affiliated newsletter, compelled the CFPB to concede that Director Richard Cordray misspoke during a speech at the Mortgage Bankers Association’s recent annual convention in San Diego. In asserting that the CFPB’s ability-to-repay rule hasn’t caused a significant reduction in mortgage originations, Cordray referenced jumbo loans, “most of which are non-QM loans,” he said. “While comprehensive data on the non-QM share of jumbo mortgages are not available, a number of data sources suggest that most jumbos are in fact QMs, not non-QMs,” Inside Nonconforming Markets went on to note. Three of the five largest jumbo lenders told the newsletter most of their jumbos are QMs, ...

First Republic Bank has contributed at least 21.3 percent of the loans that have been included in jumbo mortgage-backed securities issued in the first nine months of this year, according to a new ranking and analysis by Inside Nonconforming Markets. The bank was identified as having contributed $2.18 billion into jumbo MBS issued in the first three quarters of 2015, including $619.19 million in the third quarter. First Republic’s contributions to jumbo MBS issued in the third quarter alone topped the contributions of any other lender in the first nine months of the year. Jumbo MBS issuers and rating services generally disclose...[Includes two data tables]

Agency multifamily MBS issuance dropped more steeply, by 19.7 percent, but that was from the record $30.91 billion issued during the second quarter of this year.

The privately held Citadel will continue to service the underlying loans.

There is one GSE issue that Democrats and Republicans see eye-to-eye on: capping the pay of CEOs working for Fannie Mae and Freddie Mac.

The Highway Trust Fund reauthorization includes language that would raise GSE guaranty fees in five years.

New securitizations backed by commercial mortgages declined during the third quarter of 2015, but the market at the nine-month mark has nearly matched total issuance for all of last year, according to a new Inside MBS & ABS analysis. Some $49.62 billion of income-property mortgages were securitized during the third quarter of 2015, down 15.8 percent from the second quarter. However, with $162.18 billion of commercial mortgage securities issuance through the first nine months of 2015, the market is poised to reach its highest annual volume since the financial crisis when the year ends. Both sides of the market – non-agency CMBS and agency multifamily MBS – saw...[Includes one data table]

In late December, issuers of new non-agency MBS will become subject to new risk-retention requirements. It’s not clear whether anyone will notice. The vast majority of loans securitized in jumbo MBS over the past few years meet the qualified-mortgage standard. And because federal regulators opted to synchronize the QM standard with the separate qualified residential-mortgage standard, jumbo MBS backed entirely by QMs will be exempt from the 5 percent risk-retention requirement. When the final rule came out, Redwood Trust backed...