FHA Commissioner Carol Galante this week expressed support for bipartisan reform legislation in the Senate that would provide the agency with tools it had requested to strengthen its finances and operation. Further discussion and clarification, however, may be needed with regard to certain provisions as well as issues that were not addressed in the draft bill, she said. Galante appeared as the sole witness at a hearing called by the Senate Committee on Banking, Housing and Urban Affairs to consider a draft of the FHA Solvency Act of 2013. The Senate bill is significantly narrower in scope than the FHA provisions included in a broader mortgage finance reform bill approved by the House Financial Services Committee this week. The Senate bill would help...
With six months left before a host of rules from the Consumer Financial Protection Bureau kick in, mortgage industry representatives continue to ask for changes and clarifications – including some related to the components of the pending “qualified mortgage” points-and-fees calculation. Early this month, the CFPB formally proposed for public comment amendments to rules issued in January under the Equal Credit Opportunity Act, Real Estate Settlement Procedures Act and the Truth in Lending Act. Much of the focus of the proposed amendments relates to loan originator compensation and mortgage servicing issues. Industry commenters focused...
The Federal Housing Finance Agency considers community-based lenders a “critical” component for lawmakers to consider as they move to lay the foundation for a new housing finance system, an FHFA official said during a hearing this week of the Senate Banking, Housing and Urban Affairs Subcommittee on Securities, Insurance and Investment. “As we move to reform our nation’s housing system, it is important to ensure that community-based lenders are able to fully participate in the new system,” said Sandra Thompson, the FHFA’s deputy director for the Division of Housing Mission Goals. “There should not be a significant difference between how large and small lenders are treated when securitizing residential mortgage loans.” Thompson said...
Flagstar Bank is reportedly working on a deal to sell a large chunk of its mortgage servicing rights while retaining a subservicing contract to continue administering the loans. The bank declined to talk about its plans, but during an earnings call this week officials gave more clues that it’s contemplating such a maneuver. They told analysts that Flagstar has taken a close look at how it services mortgages, discovering that it’s quite good at servicing performing loans, but not so good with high-touch product. Sondro DiNello, president and chief executive of the bank, also declared...
During the debate, Committee chairman Jeb Hensarling accused Democrats of protecting the status quo by defending the current Fannie and Freddie dominated regime.
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