What if the U.S. government actually defaults on its debt what would that do to the value of MBS and Treasuries held on the balance sheet of banks? You may not want to know the answer.
The Supreme Court's decision sends the defendant banks back to federal district court where they will be able to appeal at a later date should an adverse ruling directly affect them.
Loan originators these days not only are looking over their shoulders, theyre also getting skittish about what lies ahead of them. Some of their backward-facing anxiety has to do with this summers CFPB suit against the nonbank lender, Castle & Cooke of Utah, and two of its top executives for allegedly paying bonuses to loan officers who steered consumers into mortgages with higher rates.During a recent special webinar sponsored by Inside Mortgage Finance, an affiliated newsletter, Jay Laifman, counsel with the Buckley...
The assignee liability inherent in the Dodd-Frank Act and the CFPBs ability-to-repay rule will keep institutional investors away from the non-agency mortgage-backed securities market, resulting in less credit availability for mortgages that fall outside the ATRs qualified mortgage standard, John Gidman, president of the Association of Institutional Investors, told the Senate Banking, Housing and Urban Affairs Committee last week. The Dodd-Frank Act and the CFPBs subsequent regulations create a path for a defaulting...
Last week, the Department of Housing and Urban Development came out with its own version of a qualified mortgage rule for FHA-backed mortgages based largely on the QM standard incorporated in the CFPBs ability-to-repay rule early this year. Following the CFPBs QM definition, HUDs proposed rule defines both a safe-harbor QM and a rebuttable-presumption QM. HUDs QM definition also incorporates the points-and-fees limitation scale from the CFPBs final rule. The significant departure from the CFPBs definition is the way in...
The CFPB recently revised its final servicing and mortgage origination regulations, and while its changes were welcome, a significant number of issues remain unresolved, an industry group told the bureau late last week. Further, without additional clarification and definition, the group said the mortgage industry will probably impose additional safeguards that will cause even more credit tightening beyond the already tight standards limiting many prospective borrowers. The final regulations still do not provide...
Some lenders have vowed to close loans without IRS verifications, filling the void by asking for additional and in-depth documentation but only on retail-sources mortgages.