A federal court in Texas recently refused for the second time to delay the compliance date of the CFPB’s payday lending rule, which generally leaves the agency only one option to delay the date: through notice-and-comment rulemaking procedures. “There is a significant likelihood that the bureau might extend the compliance deadline” through rulemaking, said Quyen Truong, a partner at Stroock & Stroock & Lavan. Two payday lending trade groups earlier this year ...
The CFPB recently imposed a $69 million judgement against two individuals and a group of payday lending entities controlled by them for cash-grab scams, although most of it will be waived. This is the seventh enforcement action brought by the CFPB so far this year, and also the third involving payday lenders. The U.S. District Court for the Western District of Missouri Western Division recently entered an order effectuating a settlement between the CFPB ...
Lenders that offer “fix and flip” financing to single-family investors are having another good year for the most part and see little in the way of either stiff competition or dark clouds on the horizon.
A heavily redacted Federal Housing Finance Agency Inspector General management alert about credit scores, published in late July, involved Fannie Mae CEO Timothy Mayopoulos, sources confirm.The 15-page report only mentioned that a “senior executive” was involved in a conflict-of-interest administrative review pertaining to alternative credit scores. It said that the executive did not disclose “critical information” about potential conflicts of interest arising from a personal relationship. Based on the IG report, it seems that Mayopoulos did disclose and recuse himself from business decisions related to alternative credit scores. But the IG report appears to take issue with the fact that he did not “fully disclose” the information.
With the launch of the single security less than a year away, there are some uncertainties that Fannie Mae, Freddie Mac and the industry expect to have cleared up before making the switch next June. They range from ensuring fungibility between Fannie and Freddie securities, to creating more regulatory clarity, preparing third parties and determining how the Securities Industry and Financial Markets Association will consider the new security in the to-be-announced market....
The Federal Housing Finance Agency’s recent stress test results show that the GSEs could need up to $77.6 billion in a severe economic crisis. But quarterly earnings continue to show a profitability that cancels out the need for a bailout. Required annually by the Dodd-Frank Act, the test of severely adverse scenario is based on Fannie Mae and Freddie Mac portfolios as of Dec. 31, 2017....
As the GSEs’ share of the multifamily market continues to grow, the Federal Housing Finance Agency wants them to take more precautions when selecting and monitoring their multifamily seller/servicers. The regulator issued an advisory bulletin this week outlining expectations for Fannie Mae and Freddie Mac to institute proper controls and perform monitoring to identify and manage risks associated with ....
New guidance issued to the Federal Home Loan Banks focuses on making sure the banks are properly pricing the funding they offer. The Federal Housing Finance Agency said the banks have introduced a diverse array of advance products to meet the changing needs of their members over the years. In a recent advisory bulletin, the regulator directs the banks to be certain that the cost to issue debt, plus administrative and operating costs, does not surpass the minimum ...
Fannie Mae issued its second fraud alert of the summer, warning lenders about borrowers using fake companies as their employers on loan applications. This time the fake companies seemed to have expanded their reach from southern California to Northern California.Ten more possibly fictitious companies have been found to be included on mortgage documents. The original alert included ....
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