Lenders and even consumer advocates are pushing for expansions to proposed streamlined refinance standards for “qualified mortgages.” Federal regulators proposed an exception to the QM ability-to-repay requirements for refis of “non-standard mortgages” into standard mortgages. “MBA urges the CFPB to revisit these criteria so more borrowers qualify for streamlined products and such products are treated as QMs,” the Mortgage Bankers Association said in a comment letter sent to the Federal Reserve. The comment period on the proposed rule ...

The Federal Reserve last week fined Wells Fargo & Co. $85.0 million, alleging that a non-bank subsidiary of Wells steered prime borrowers to subprime mortgages. The consent order is the first formal enforcement action taken by a federal bank regulatory agency to address alleged steering of borrowers into high-cost subprime mortgages. The civil money penalty is also the largest the Fed has assessed in a consumer-protection enforcement action. In addition to the civil money penalty, the order requires that Wells compensate more than ...

The Federal Housing Finance Agency this week filed a lawsuit against UBS Americas alleging misstatements and omissions on non-agency mortgage-backed securities purchased by Fannie Mae and Freddie Mac. FHFA Acting Director Edward DeMarco warned that further action against other non-agency MBS issuers is likely. “From the issuance of 64 subpoenas last year to the filing of this lawsuit and further actions to come, we continue to seek redress for the losses suffered by ...

An increasing number of non-agency mortgage-backed security investors have opposed Bank of America’s proposed $8.5 billion settlement related to buybacks and servicing. The proposed settlement announced last month was seen as a precedent for the sector, though final approval remains far from certain. MBS investors have raised concerns about the settlement price, conflicts of interest and second liens, among other issues. If approved, the settlement would apply to all investors in the 530 Countrywide Financial securities in question, not just to the 22 large firms represented by ...

Ocwen Financial has posted impressive results with a shared appreciation modification program that recently received broad regulatory approval. The servicer noted that the mods, which include principal reduction, benefit borrowers and mortgage investors.Ocwen launched a SAM pilot program in August and announced this week that it hopes to expand the program nationwide. Ocwen CEO Ronald Faris said 79.0 percent of borrowers that have been offered the mods have accepted and the pilot program had a ...

Funds participating in the Public-Private Investment Program suffered large decreases in their net returns due to the significant decrease in non-agency mortgage-backed security prices in the second quarter of 2011. Pricing during the quarter was negatively impacted by the Federal Reserve’s sales of non-agency MBS from the Maiden Lane II portfolio. All eight of the Public-Private Investment Funds experienced a decrease in their net internal rates of return in the second quarter of 2011 compared with the previous quarter, according to the Treasury Department. And seven of the PPIPs experienced a ... [includes one data chart]

Bank of America agreed this week to fully participate in a principal reduction modification program in California, according to the California Housing Finance Agency. BofA had participated in the program on a pilot basis since February. Qualifying borrowers are eligible for up to $100,000 in principal reduction via the “Keep Your Home California” program. Mortgage holders are required to match dollar-for-dollar the amount of ...

The mortgage industry saw a substantial 28.4 percent dive in FHA-insured mortgage loan production in the first half of 2011 compared to the same period last year, according to Inside FHA Lending’s latest analysis of government data. Approved lenders and their sponsored third-party originators combined for $100.12 billion in FHA loan originations at the end of the first six months. The top 50 FHA lenders accounted for more than half of the six-month output with an aggregated total of $53.4 billion ... [includes one data chart and one graph]

The Department of Housing and Urban Development said it will soon issue guidance regarding audit requirements for small FHA direct lenders. A department spokesman said HUD is “very close” to issuing a mortgagee letter on revised compliance audit requirements needed for FHA lender approval or renewal. No date was given for the mortgagee letter’s release. On April 12, the FHA confirmed in an email to the American Bankers Association that it has approved ...

Most state-licensed mortgage companies in the Nationwide Mortgage Licensing System and Registry are mortgage brokers, of which a significant portion does FHA loan correspondent business, according to a recent report issued by the Conference of State Bank Supervisors. As of the end of the first quarter, 14,980 companies possessed 28,415 licenses – an average of two state licenses per company, according to the report, “A Nationwide View on State-Licensed Mortgage Entities, Quarter I, 2011.” The licensee/registrant reports ...