Ginnie Mae plans to launch a performance-measuring tool, Issuer Operation Performance Profile (IOPP), to enable issuers to see how they stack up to the agency’s standards and make improvements. The agency did not specify a launch date but said the tool will be available “in early 2015.” It will be used to compare an issuer’s operations and defaults with those of its peers, along the lines of FHA’s compare ratio for lenders in Neighborhood Watch. The issuer scorecard is...
Issuers of auto ABS are loosening underwriting standards and delinquencies on subprime auto loans are increasing, but industry analysts suggest that there is little cause for concern. Performance remains much stronger than the delinquencies seen during the financial crisis and issuers are unlikely to loosen underwriting to the extent seen in the run-up to 2008. For independent finance companies, 60+ delinquencies increased by 13.7 percent in the past year, from 1.82 percent in the third quarter of 2013 to 2.07 percent in the third quarter of 2014, according to the latest data from Experian Automotive. Independent finance companies focus primarily on lending to subprime borrowers, and their delinquency trends outpaced any increase in delinquencies for other types of lenders that lend primarily to prime borrowers. Peter McNally, a vice president and senior analyst at Moody’s Investors Service, said...
FirstKey Mortgage, which has big plans in the non-agency space that include lending outside the qualified mortgage box and securitization, late this week saw the departure of three of its top executives, including CEO Bruce Witherell. According to industry officials familiar with the situation, FirstKey’s parent company, Cerberus, was beginning to take more of an active role in how the lender/issuer was being operated, a situation that didn’t sit well with some senior executives at the nonbank, including Witherell. Witherell and FirstKey executives Randy Sidhu and David Essex have accepted...
The CFPB and the Maryland AG also took action against former Wells Fargo employee Todd Cohen and his wife, Elaine Oliphant Cohen, for their alleged involvement.
MBA's Dave Stevens did not mince words, calling the CFPB product "the most misleading and inaccurate tool that will do anything but help prospective homebuyers.”
ABS issuance was up 12.0 percent from the prior year, with solid gains in three of the market’s key sectors: auto finance, credit cards and business loans.
Shortly before he left office, the former chairman of the Senate Banking, Housing and Urban Affairs Committee urged the Consumer Financial Protection Bureau to fix a problem that may prevent some loans from being classified as qualified mortgages. Former Sen. Tim Johnson, D-SD, said the problem in the CFPB’s points-and-fees definition was the result of a drafting error in the Dodd-Frank Act, which established the qualified mortgage under the ability-to-repay regulation. Loans with points and fees exceeding 3 percent can still be legal under the ATR, but the lender doesn’t get the liability protection afforded QMs. “The calculation of points and fees for purposes of determining what is a qualified mortgage was not intended...
The Consumer Financial Protection Bureau this week made final two tweaks to its integrated disclosure rule that were proposed back in October, both of which will give mortgage lenders a little more flexibility. Under the first change, lenders will have to provide a revised loan estimate within three business days after a consumer locks in a floating interest rate. Under the original rule, lenders would have had to provide the revised LE on the date the rate was locked. “After hearing feedback from stakeholders, the bureau determined...
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