Freddie Mac's CFO said the "true value" provided by the government-sponsored enterprises isn't billions of dollars in profits. Meanwhile, firms continue to pursue mortgage servicing rights.
The CFPB filed a civil suit last week against Castle & Cooke Mortgage and two top executives, accusing the Utah-based nonbank of illegally giving bonuses to loan officers who steered consumers into mortgages with higher interest rates. Overall, the firm paid 500 quarterly bonuses – roughly $4 million in compensation – to its retail loan officers, based on a compensation structure that rewarded them for bringing in mortgages at higher note rates, the government charges.In its suit, filed in U.S. District Court for the Central District...
The House Financial Services Committee recently voted 30‐27 to approve H.R. 2767, the Protecting American Taxpayers and Homeowners (PATH) Act, the housing reform bill introduced by Rep. Jeb Hensarling, R‐TX, the committee chairman. Among the bill’s Title IV provisions are a handful of “regulatory relief” overrides to various CFPB mortgage-related rulemakings. For example, Section 403 includes changes to the points-and-fees definitions for the “qualified mortgage”/ability-to-repay rule that also were included in H.R 1077...
Two industry groups have jointly written the CFPB requesting the bureau reconsider a final rule that requires lenders to disclose and deliver appraisals to consumers for both residential loans and commercial loans. The American Bankers Association and the Mortgage Bankers Association said the rule is going to create challenges for lenders when a dwelling is securing business credit, asserting it would place large burdens on lenders, as they may have to deliver thousands of appraisals to non-consumers in commercial settings...
The New York State Department of Financial Services is concerned that the CFPB’s proposed amendments to its mortgage loan servicing rulemaking would interfere with the state’s early-intervention efforts on behalf of delinquent homeowners. Here’s the problem, as NY DFS sees it: Under the CFPB’s proposed amendments to the mortgage rules per the Real Estate Settlement Procedures Act/ Regulation X, mortgage servicers are prohibited from making “the first notice or filing required by applicable law for any judicial or non-judicial...
New Penn Financial is one of the few lenders putting an emphasis on mortgages for borrowers that are foreign nationals. The company offers mortgages to non-U.S. citizens with rates and terms somewhat looser than those offered by other lenders operating in the niche market. “Our proprietary program offers flexibility and fewer restrictions,” New Penn said. While data on mortgages to foreign national borrowers are scarce, the loans largely appear to be a non-agency product, both held in portfolio and sometimes securitized ...
The non-agency jumbo mortgage-backed securities issued by Redwood Trust between March 2010 and November 2012 haven’t taken any losses, according to Kroll Bond Rating Agency. Delinquencies on the securities remain extremely low, and a significant portion of mortgages included in the MBS have prepaid. As of July, three of the nine non-agency jumbo MBS issued by Redwood from 2010 through 2012 had loans that were delinquent. However, the loans were only in the 30-day delinquency bucket ...
Several provisions in FHA solvency legislation are emerging as potential hot-button issues for lenders, according to legal experts. There is growing industry concern over indemnification provisions, which appear to be more stringent in the Senate’s FHA Solvency Act of 2013 than in H.R. 2767, Protecting American Taxpayers and Homeowners Act (PATH Act), which the House Financial Services Committee passed this week. Under Title II (FHA reform) of the PATH Act, a lender may be required to indemnify the FHA if the agency determines that ...
The House Financial Services Committee this week reported out a legislative package of housing finance system reforms, including measures designed to reduce FHA’s role in the mortgage marketplace, strengthen lender oversight and avoid a potential taxpayer bailout. The bill, Protecting American Taxpayers and Homeowners Act (H.R. 2767), passed by a vote of 30 to 27 despite mixed responses from industry experts, academics, financial trade associations and consumer advocates. Critics called for changes. Offered by Rep. Jeb Hensarling, R-TX, chairman of the Financial Services Committee, the bill proposes ...
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