Warehouse commitments extended to nonbanks fell 16 percent on a sequential basis in the third quarter to roughly $20.5 billion, according to new figures compiled by Inside Mortgage Finance. Compared to the same period a year earlier, commitments tumbled even more: 20 percent. The drop in commitments mirrored, somewhat, the fall-off in residential originations, which declined almost 19 percent in the third quarter. However, commitments measure how much credit a warehouse lender is willing to provide – not how much it actually provides. Wells Fargo, the nation’s largest warehouse lender, had...[Includes one data chart]
The Consumer Financial Protection Bureau may formally address the treatment of affiliate fees in the points-and-fees calculation for qualified mortgages under the agency’s ability-to-repay rule, which takes effect in just a few weeks. Until such a decision is made, industry representatives have put together some guidance on how to exclude such fees from that 3 percent cap. “There has been significant industry confusion concerning the extent to which affiliate fees are included in the points-and-fees calculation, particularly when only a portion of a fee is retained by an affiliate,” the Mortgage Bankers Association said early this week. The trade group has put together a document outlining its understanding of the CFPB’s definitive guidance, based on discussions with bureau staff, on the treatment of affiliate fees in both the qualified mortgage and the Home Ownership and Equity Protection Act points-and-fees calculations. “Please keep in mind...
Recent progress reports on the $25 billion national servicing settlement and the Home Affordable Modification Program suggest that servicers are complying with the vast majority of the programs’ requirements. However, regulators continue to push for better performance. The five banks participating in the national servicing settlement complied with the settlement’s 29 metrics as of the end of the second quarter of 2013, according to a report released last week by the settlement’s monitor. JPMorgan Chase was...
The Department of Housing and Urban Development this week issued a final rule implementing a qualified-mortgage standard for FHA loans that is essentially unchanged from the agency’s first proposal issued in late September. HUD determined that it had to tweak the calculation of points and fees that is in the Consumer Financial Protection Bureau’s QM rule so that a large number – about 19 percent – of FHA forward mortgages will be classified as QMs. The final HUD rule establishes two categories of FHA qualified mortgages: safe-harbor QMs and rebuttable-presumption QMs. FHA forward mortgages will be considered...
“The CFPB’s treatment of balloon loans was a step in the right direction, and demonstrated recognition of the unique nature of community banking and a different approach to regulating them,” the CSBS says in a new white paper.
The changes are part of an extensive overhaul aimed at boosting the rural housing market, increasing the availability of rural home loans and spurring the construction of new homes in rural areas.
RSS