India and the Philippines “are subject to relatively higher degrees of political and social instability and may lack the infrastructure to withstand political unrest or natural disasters,” Nationstar said.
The CFPB’s impact on the mortgage-backed security market remained a touchy subject at the SFIG Vegas conference last week. MBS investors are encouraged that the bureau is more willing to listen to industry participants, but they have concerns about assignee liability and grim predictions about increased regulation by the states. For a time after the CFPB implemented the TILA-RESPA Integrated Disclosure rule, sales of non-agency mortgages were difficult to complete. TRID includes assignee liability ...
Senate Majority Leader Mitch McConnell filed a motion last week to advance bipartisan legislation that would relieve banks, especially smaller ones, from a handful of CFPB regulations. The Economic Growth, Regulatory Relief, and Consumer Protection Act, or S. 2155, was passed by the Senate Banking, Housing and Urban Affairs Committee in December 2017. The vote on the motion to proceed will be on Tuesday, March 6. The act, introduced by Sen. Mike Crapo, R-ID, would roll back a number of ...
Two recent Government Accountability Office reports suggested regulators, including the CFPB, take additional steps to address compliance burdens for community banks and credit unions. Over 60 smaller depository institutions told GAO that regulations for reporting mortgage characteristics, reviewing transactions for potentially illicit activity, and disclosing mortgage terms were the most problematic.Data-requirements under the Home Mortgage Disclosure Act are great burdens, according to ...
Fannie Mae is keeping a close watch on any future changes to the CFPB’s ability-to-repay/qualified mortgage rule, saying whatever happens could have a “material effect on the quality and quantity of loans available for sale to us.” Roughly a year ago, the CFPB announced it would begin its statutorily-mandated assessment of the ATR and QM provisions. “The CFPB is required to assess the effectiveness of the regulations in light of its stated goals and to publish a report, after public comment, on whether ...
The cross-subsidization baked into current GSE guarantee-fee pricing could be made to work better, according to Urban Institute researchers. Current GSE pricing under guidelines from the Federal Housing Finance Agency are not fully adjusted to risk: low-risk borrowers pay a little more than they should and higher-risk borrowers pay a little less. Urban Institute researchers Jim Parrott and Laurie Goodman in a new paper say there are shortcomings in the existing cross-subsidy system that result in support going to borrowers who may not need it. “First, it does not effectively target those who need the help,” they said, adding that close to one of four beneficiaries of the subsidy are not in the low- to moderate-income category.
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