In a recent comment letter submitted to the Consumer Financial Protection Bureau, the Mortgage Bankers Association argued for changes to regulations in an effort to boost originations of non-agency mortgages. The trade group cited problems with Appendix Q of the ability-to-repay rule and called for the government-sponsored enterprise “patch” for qualified mortgages to be extended to jumbo mortgages. Appendix Q sets QM standards for non-agency mortgages that aren’t eligible for sale to the GSEs or government-insured
A provision involving community banks and qualified mortgages in recently enacted regulatory relief legislation could prompt community banks and nonbanks to loosen underwriting standards for non-agency mortgages, according to Moody’s Investors Service. Banks with less than $10.0 billion in assets can receive QM treatment for certain loans that would otherwise be non-QMs if the banks hold the mortgages in portfolio acording to the Economic Growth, Regulatory Relief and ...
Borrower complaints about nontraditional mortgage products from nonbanks in California decreased in 2017, according to the state’s Department of Business Oversight. The California DBO said nonbank lenders and servicers received 12,963 complaints about nontraditional mortgages, down 11.1 percent from 2016. However, officials at the DBO cautioned against making comparisons between data for 2016 and 2017 because the number of ... [Includes two briefs]
The spring homebuying season fueled a relatively modest increase in production of Ginnie Mae single-family mortgage-backed securities during the second quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Lenders issued $98.66 billion of Ginnie MBS backed by forward mortgages during the April-May cycle. That was up 6.6 percent from the first three months of the year, but 2018 continued to lag behind the pace set in 2017 by 10.7 percent. Given current trends, annual Ginnie MBS issuance in 2018 could fall short of the $400 billion mark for the first time since 2014. The flow of FHA and VA purchase mortgages was up a solid 23.7 percent from the first to the second quarter, bringing the total for the first half of the year to $121.01 billion. However, that was down 4.7 percent from the same period in 2017. Ginnie securitized $75.02 billion of FHA purchase loans in the ... [Charts]
California Business Regulator Warns Lenders, Servicers on Filing of Mandatory Reports. On June 29, the California Department of Business Oversight warned residential mortgage lenders and servicers that their failure to file annual reports could lead to enforcement actions. The DBO supervises state-licensed financial institutions as well as licenses and regulates financial service providers. The agency cited data in its 2017 annual report, which showed that licensee business reports filed last year have dropped 8 percent from the prior year. DBO Commissioner Jan Lynn Owen called the decline “disturbing” and warned that the agency would take appropriate action to deal with licensees that do not file their reports. CA’s Residential Mortgage Lending Act requires all licensed mortgage lenders and servicers to file a report annually with the DBO. Failure to comply automatically triggers a department audit, which ordinarily ...
Fannie Mae this week released details about a pilot program that explores an alternative to how private mortgage insurance is placed on loans the government-sponsored enterprise acquires.
Some courts have determined that because non-judicial foreclosures don’t technically obligate borrowers “to pay money,” protections from the FDCPA aren’t available.
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