A group called The 60 Plus Association has released TV and radio ads in seven states targeting Senate Banking Committee Members who are sponsoring GSE reform legislation. The group claims the bills “allow the government to take over the mortgage industry in an action 'disturbingly similar' to Obamacare.”
The CFPB’s emphasis on behavioral law and economics – and politically preferable outcomes –produces inefficient, heavy-handed regulations that are inconsistent with the intent and purpose of improving consumer choices, according to a white paper by a pair of university economists. “In part, the CFPB has justified its ongoing intervention into financial credit markets based on a prior belief in the inability of consumers to competently weigh their decisions,” said Adam Smith, assistant professor of economics at Johnson & Wales University in Charlotte, NC, and Todd Zywicki, a senior scholar at the Mercatus Center at George Mason University in Fairfax, VA.
Moody’s Asks for Public Input on QM-Related Ratings Criteria. Moody’s Investors Service last week put out a request for comments regarding its proposed rating standards for loans originated in the era of the qualified mortgage. The proposed criteria include standards and treatment for various loan types similar to the criteria issued by Fitch Ratings the week before. (See the March 17, 2014, issue of Inside the CFPB for details). Moody’s indicated it will devote extra scrutiny to lenders that have a significant use of “bona fide discount points” to bring points and fees on a mortgage into compliance with QM requirements. The points and fees on a QM cannot exceed 3.0 percent of the loan amount.
Although some jumbo market participants have called for a reduction to GSE loan limits, most of the mortgage industry – and members of Congress – prefer the current levels.
Inside FHFA Lending also found another interesting trend: The top 50 HECM lenders are dominated by nonbanks, some of which are relatively new to the space.
As for the new GSE bill from Rep. Maxine Waters, D-CA, the research firm notes that the legislation will not even be considered in the Republican controlled House.
To date, the use of eminent domain to restructure residential loans has garnered a ton of headlines in the financial press, but has posted little in the way of success.
No purchase price on the sale of Allonhill assets to Stewart was ever disclosed. According to the bankruptcy filing, the sale price cannot be revealed for at least 12 months after the sale and will require approvals from both parties.
Whatever happened to the sale of Cole Taylor Mortgage, which has been in the works for nine months or so? Good question. When we asked one source close to the deal, his response was this: “Think of the Energizer Bunny but with fairly old batteries.
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