The American Bankers Insurance Association is calling upon the CFPB to reconsider the "force-placed" insurance notice provisions in the bureau's newly issued mortgage servicing rules, arguing they go beyond what the Dodd-Frank Act intended, could disrupt the market in unintended ways and have a negative effect on consumers. Force-placed insurance is coverage that the servicer buys on the property when the borrower no longer has property insurance. Without such coverage, whoever holds the mortgage would be at risk if the house were to be damaged or destroyed. But often the borrower may be responsible...
Mortgage lenders saw a welcome decline in the volume of repurchases and indemnifications they had to make during the third quarter, but a new analysis of two major databases by Inside Mortgage Trends reveals that the industry made little progress in resolving the massive overhang of disputes involving loans from the depth of the housing crisis.
The CFPB has promulgated its loan originator compensation final rule, perhaps most notable for what it didn't include. Industry groups had urged the bureau to drop from the final rule its proposed "zero-zero alternative that would have required lenders to offer a loan option with no discount points or origination fees any time they offered a mortgage with such payment features. Industry representatives said...
Carrington Holding Co., which has a growing presence in residential finance, has hired Wall Street veteran Christopher Whalen as Executive Vice President in charge of its investment banking operation.
Merrill Lynch is in the market actively buying jumbo mortgages and is also looking for an executive to manage its correspondent purchases, secondary market officials told Inside Mortgage Finance.
CFPB, Agencies Eyeing Social Media Contacts for Consumer Protection. The CFPB and the other five agencies that comprise the Federal Financial Institutions Examination Council are proposing supervisory guidance on federal consumer protection and compliance requirements as they apply to social media used by banks, savings associations and credit unions, as well as by nonbank entities. “Upon completion of the guidance, and after consideration of comments received from the public, the federal financial institution regulatory agencies will issue it as supervisory guidance to the institutions that they supervise and the State Liaison Committee of the FFIEC will encourage state regulators to adopt the guidance,” the proposal stated. “Accordingly, institutions will be expected to use the guidance in their efforts to ensure that their policies and procedures provide oversight and controls commensurate with the risks posed by their social media activities.” Bureau Considers Helping Americans with Retirement Savings. The CFPB is contemplating whether to get involved in helping Americans manage the $19.4 trillion they have put into retirement savings, Bloomberg News reported recently. “That’s one of the things we’ve been exploring and are interested in, in terms of whether and what authority we have,” Director Richard Cordray said in an interview with the news organization. CFPB Proposes...
The CFPB’s new qualified mortgage rules will frustrate the market and adversely impact traditional supply and demand principles that could slow the sector’s recovery, according to scholars at the Heritage Foundation, a conservative think tank in Washington, DC. “Neither consumers nor creditors emerge as winners,” write research fellows Diane Katz and David John in an issue brief on the new QM rules, issued earlier this month. Irresponsible lending did in fact play...
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