Though the CFPB wants to allow lenders to continue to use the patch for another 18 months, the PSPA requires Fannie and Freddie to cease buying patch loans as of July 1.
SoftBank places a $500 million bet on the digitization of residential finance by taking a stake in Better.com. Also, mortgage earnings season has begun.
States hope to finalize standards for nonbank servicers despite strong opposition from industry participants. Details are still being ironed out, and implementation remains a concern.
A number of groups representing lenders and consumer advocates said the CFPB should abandon an effort to extend the QM patch beyond July 1. The regulator also faces hurdles involving the GSEs and federal rulemaking requirements.
Cowen analyst Jaret Seiberg warned the CFPB could be “setting the stage for an enforcement avalanche” against lenders that foreclose on troubled borrowers.
Mortgage industry groups continue to put pressure on the Treasury Department and the Federal Housing Finance Agency to revisit the restrictions on the amount of loans Fannie Mae and Freddie Mac can purchase.