Following signs that the Consumer Financial Protection Bureau may been far more involved in the 50-state servicer settlement discussions than it has publicly let on, key Republican House committee chairmen have called upon Treasury Secretary Timothy Geithner to provide documents and records related to the CFPB’s role in the negotiations, un-redacted, by no later than July 5. In their request, the lawmakers cited a copy of a CFPB settlement presentation that recommended goals, provided…

The strength of the non-agency market has become a major point of concern as a diverse coalition of market participants lobbies for changes to a proposed rule for mandatory risk retention. The impact on the non-agency market is second only to the group’s concerns about downpayment requirements in the qualified residential mortgage debate. “The proposed narrow QRM rule discourages...

Subprime borrowers in rural areas have been significantly impacted by mandatory escrow requirements on higher-priced mortgages, according to community banks. The Independent Community Bankers of America is leading efforts by banks to limit or remove escrow requirements currently enforced by the Federal Reserve. The minimum period for mandatory escrow accounts for most first-lien higher-priced mortgages would be expanded...

Sen. Robert Menendez, D-NJ, is considering putting together comprehensive legislation that would reconcile a number of existing mortgage servicing-related bills already introduced in the Senate, according to top industry representatives and other Capitol Hill sources closely following the developments.“There has been some interest expressed by Sen. Menendez’s office in yoking together a lot of different bills in terms of a comprehensive bill,” one informed source confided. “But it’s not clear how much ...

At least three lenders are looking to re-establish the market for non-prime lending. Two firms are hoping to attract additional funding and begin non-prime lending shortly, while a smaller player is already offering the loans. Shellpoint Partners has plans to expand the offerings of a recently acquired agency originator, New Penn Financial. Shellpoint is a specialty finance company and joint venture with Ranieri Partners. Lewis Ranieri, a co-founder of Shellpoint, said...

Facing a growing coalition of dissatisfied non-agency mortgage-backed security investors, Bank of America announced this week that it plans to settle a large portion of its non-agency MBS claims related to buybacks and servicing. The action sets a precedent for the sector, making settlements with other non-agency MBS issuers more likely. “Bank of America has charted...[Includes one graph]

Total capital in the FHA single-family program declined again in the first quarter of 2011, although agency officials say the program is on target to meet legal mandates as higher premiums and stronger loan quality gradually offset poorly performing older loans. In a quarterly report released this week, the Department of Housing and Urban Development said total capital resources for the FHA Mutual Mortgage Insurance Fund declined by $1.1 billion to $31.6 billion during the first three months of 2011. At the same time, the outstanding balance of single-family insurance at risk rose ...

The Federal Housing Finance Agency, Ginnie Mae and the government-sponsored enterprises should add another potential alternative servicing fee structure in their deliberations to revamp the compensation structure for residential servicing, according to the Mortgage Bankers Association. Last week the MBA sent a letter to the FHFA, Ginnie Mae, Fannie Mae and Freddie Mac pitch-ing the merits of a Reserve Account Proposal, requesting the proposal be included among the options expected to be released for public comment within the next month. “The Reverse Account Proposal would set up ...

The Consumer Financial Protection Bureau isn’t wasting any time in moving forward with its “know before you owe” integrated mortgage disclosure project. Late last week, it released highlights of the thousands of comments it received from the first round of its disclosure prototypes, and early this week it issued a second set of forms for public comment, this time focusing on borrower payments or fees necessary to close a mortgage. In the first round of prototypes (dubbed “Ficus Bank” and “Pecan Bank”), the back page was the same on both versions, whereas the front page ...

The fledgling Consumer Financial Protection Bureau sees its role as helping credit markets work better to enhance viable homeownership and level the playing field in credit availability, according to key officials participating in the Mortgage Lending Industry Strategic Markets & Diversity Conference sponsored last week by ComplianceTech. “We realize now that building wealth and homeownership is a risky proposition and one that should not be taken lightly,” said Patricia McCoy, assistant director of mortgage and home equity at the CFPB. “Our job is to ...