In late April, the CFPB issued a final rule governing the administration of its Civil Penalty Fund, along with proposed revisions to that rule. Among the highlights of the final rule is that a victim is eligible for payment from the fund if a final order in a bureau enforcement action imposed a civil penalty for the violation or violations that harmed the victim. That means that payments from the fund would only be made to compensate victims for the harms they suffered from a violation for which penalties were...
Late last month, members and staff of the Mortgage Bankers Association met with key personnel from the CFPB to highlight ongoing concerns with aspects of the bureau’s ability-to-repay, qualified mortgage rulemaking. Some of the issues the organization raised with the regulators were not dealt with by the bureau’s recent proposed clarifications, including questions about loan originator compensation. Currently, LO compensation to individual originator employees is factored into the calculation of the QM’s three...
The top compliance concerns for lenders stem from CFPB mandates such as the combined Truth in Lending and Good Faith Estimate disclosure form, as well as other bureau-related rulemakings, according to the seventh annual compliance survey from Laguna Hills, CA-based QuestSoft, a provider of automated compliance software and services to the mortgage, banking and credit union industries. The combined TILA/GFE rules ranked as the highest concern among lenders, with 58.8 percent citing it as a high concern, followed by as-yet-undefined...
Rep. Gary Miller, R-CA, and two other members of the House recently introduced the Preserving Access to Manufactured Housing Act, legislation they said will ensure that new regulations released earlier this year by the CFPB to address high-cost mortgage loans do not further hinder the availability of mortgage credit for manufactured homes. Miller said the concern is, without their legislation, financing options for manufactured housing would be greatly limited, leaving thousands of manufactured home customers...
Nevada Bill Would Conflict With CFPB Servicing Rules. Last week, the Mortgage Bankers Association wrote members of the Nevada Assembly Judiciary Committee to warn that state Senate Bill 321, which would enact state-specific mortgage servicing rules, would conflict with the CFPB’s comprehensive, national servicing rules that were finalized in January. S.B. 321 would, among other things, authorize a defendant in a judicial foreclosure action to elect mediation...
May/to be announced: The House Financial Services Committee has reportedly called upon two, as of yet unnamed CFPB officials to testify at a hearing to be announced later this month on the agency’s ability-to-repay, ‘qualified mortgage’ rule that was promulgated in January. Additional details were not available as Inside the CFPB went to press. May 8: The bureau plans to host a field hearing at Miami Dade College in Florida “on student loan borrowers,” and expects to feature remarks from Director Richard Cordray...
Overall FHA loan production dropped a tad during the first quarter of 2013 even as refinancing volume remained elevated, according to an Inside FHA Lending analysis of agency data. FHA lenders produced a total of $63.7 billion in new FHA-insured loans during the quarter, down 0.6 percent from the previous quarter but up 27.4 percent from the same period last year. FHA streamline refinancing rose 8.4 percent to $31.0 billion in the first quarter from the prior period. That was also up a whopping 97.8 percent from the same period last year. In a new report to Congress, the ... [2 charts]
Fannie Mae, Freddie Mac and Ginnie Mae pumped out a respectable $152.3 billion in new single-family MBS in April, according to a new Inside MBS & ABS market analysis and ranking. April’s issuance level was up 2.6 percent from March and reversed, at least temporarily, a two-month downturn in new production. The cyclical peak for the agency MBS market came back in November 2012, when a whopping $199.4 billion in new securities were issued. Although the market couldn’t sustain...[Includes one data chart]
Fannie Mae is discouraging some of its newly minted seller/servicers from issuing MBS through swap transactions and is instead pushing them toward its “cash window,” according to lenders and advisors familiar with the issue. “Fannie has increased its due diligence on lenders to ensure they are meeting, or are able to meet, the terms and conditions of an MBS issuance,” said Tim Rood, managing partner in The Collingwood Group, a Washington-based advisory firm. Rood, a former Fannie executive, told...
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