“The issues that have impeded the regulators’ ability to conduct electronic examinations must be rectified, and when resolved, will enable a more efficient and timely regulatory process,” said Karyn Tierney, chair of the MMC.
Fannie Mae and Freddie Mac saw a modest decline in the flow of home loans into their mortgage-backed securities programs during the third quarter of 2015, according to a new analysis and ranking by Inside Mortgage Finance. The two government-sponsored enterprises issued a total of $223.47 billion of single-family MBS during the third quarter, a 3.8 percent decline from the previous quarter. Freddie had a slightly larger downturn (4.1 percent) than Fannie (3.6 percent). Although overall MBS volume was down, lenders delivered...[Includes three data tables]
Some mortgage lenders and their vendor partners scrambled until late in the night this past Friday to get all their ducks in a row for the Saturday effective date of the Consumer Financial Protection Bureau’s integrated disclosure rule. Many in the industry were relieved when the CFPB and other federal regulators issued last-minute guidance affirming that they will recognize the good-faith efforts of the mortgage industry to comply with the new rule. “During initial examinations for compliance with the rule, the agencies’ examiners will evaluate...
Over the past few months, the chief executive officers at two publicly traded mortgage firms and a private cooperative have departed, creating uncertainty in the market while underscoring what might seem obvious to some: It’s not easy running a mortgage business these days. CEOs heading for the exits – either on their own accord or via a management edict – include Jim Cutillo of Stonegate, Jeff McGuiness at the Lenders One Cooperative, and most recently Mark O’Brien, who headed nonbank lender/servicer Walter Investment Management Corp. And rounding out the “departure club” is...
The nation’s seven active mortgage insurance firms expect to be fully compliant with the Federal Housing Finance Agency’s new capital eligibility rules by the yearend deadline – if they aren’t already – but now there’s a new worry: more regulations may be on the way. According to sources inside the MI sector, the FHFA is taking a close look at the use of reinsurance by private mortgage insurers with an eye toward capping it. “FHFA is worried that reinsurance firms may not pay,” said one MI official who spoke extensively on the topic under the condition he and his firm not be identified. “They want to reduce the credit you get for using reinsurance firms.” “The FHFA is trying...
Fannie Mae and Freddie Mac this week announced a new “origination defects and remedies framework” designed to give lenders more clarity about underwriting problems that could lead to a repurchase demand. The framework sets three categories of loan defect: findings, price-adjusted loans and significant defects. Findings are negligible defects that had no effect on whether the loan was acceptable to the government-sponsored enterprise. The GSE will not require a price adjustment or other remedy from the lender, though it may request updated data regarding the loan. Price-adjusted loans are...
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