The CFPB recently sent letters to select private student loan lenders and servicers inquiring about their current and planned loan modification options. The letter is a follow-up to a meeting last year convened by CFPB Director Richard Cordray and Education Secretary Arne Duncan to discuss ways for industry participants to offer more options, such as modified repayment plans, to help borrowers avoid default and increase the likelihood of full repayment. Federal financial regulators have offered repeated guidance encouraging industry to pursue these workout arrangements, and they have noted that they will not criticize financial institutions even if these loan modifications lead to adverse credit classifications, CFPB Student Loan Ombudsman Rohit Chopra said in the correspondence. “While certain market participants have ...
Consumer complaints about their student loans turned in an uneven performance over the past year, with complaints down from the third quarter of 2014 to the fourth quarter, but up when compared against the fourth quarter of 2013, according to the latest analysis by Inside the CFPB. The uneven results can be attributed primarily to two factors: there were 80 companies in the complaint universe as of Dec. 31, 2014, compared with 61 the year before. Also, even though 4Q14 numbers were better than those of 3Q14, both of those quarters were still elevated compared to 4Q13 levels. It’s also important to keep in mind that consumer gripes filed with the CFPB are always a work in [with exclusive chart] ...
The Federal Reserve’s opinion survey of senior loan officers has grown in scope to include some new mortgage categories, including qualified mortgage underwriting and non-QM underwriting. In brief, the Fed found that underwriting is easing slightly as demand slips modestly. “The January 2015 survey revised and expanded the residential mortgage loan categories to reflect the CFPB’s qualified mortgage rules and provide additional detail on important developments in the residential mortgage market both now and in the future,” the survey said. In particular, the survey included the following seven mutually exclusive categories of residential home-purchase mortgage loans: government-sponsored enterprise-eligible residential mortgages; government residential mortgages; QM non-jumbo, non-GSE-eligible residential mortgages; QM jumbo residential mortgages; non-QM jumbo residential mortgages; non-QM non-jumbo residential mortgages ...
OIG Expects to Finish Nine Audits, Evaluations of the CFPB This Quarter. The CFPB’s Office of Inspector General has a batch of ongoing projects related to the bureau that it expects to complete sometime during the first quarter, according to the OIG’s latest work plan, released early this week.Among the projects are audits of the CFPB’s contract management process, its diversity and inclusion processes, and it headquarters renovation project. Other projects with a first quarter 2015 completion timeframe are audits of the CFPB’s public consumer complaint database, the bureau’s space-planning activities, and the CFPB’s Tableau system, an application used to develop, publish, and view business intelligence data. Also up for completion this quarter is an evaluation of the CFPB’s ...
Although there’s been plenty of talk about the securitization of nonprime loans that don’t fit the qualified mortgage criteria finally taking off this year, it’s not looking like a good bet. “We can’t do a security this year,” said Jeff Lemieux, vice president at Bayview Asset Management, which has been actively buying non-QM product geared toward the self-employed. Bayview is purchasing...
Michael Stegman, a counselor to the Treasury on housing finance policy, said the exercise aims to solve the “chicken-and-egg” issue that some see as holding back non-agency MBS activity.
Meanwhile, a separate survey conducted by Inside Mortgage Finance found 17 percent of respondents holding the belief that the premium cut will have little effect...
New issuance of single-family MBS by Fannie Mae, Freddie Mac and Ginnie Mae fell 4.6 percent from December to January, according to a new Inside MBS & ABS ranking and analysis. The three agencies produced $85.18 billion of new single-family MBS last month. The good news is that was up a hefty 24.3 percent from January 2014; the bad news is January 2014 came toward the end of a nine-month swoon in agency MBS production. All of the decline in monthly MBS issuance resulted...[Includes two data charts]
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