The Democratic Party released its 2016 platform and its priorities range from expanding foreclosure prevention programs to increasing access to affordable housing and preserving the 30-year fixed-rate mortgage. Dave Stevens, president and CEO of the Mortgage Bankers Association, said that when it comes to housing, the Democratic and Republican platforms are starkly different. “The Republican platform is almost solely about removing burdens on financial institutions and others who build homes, and the Democratic platform deals with both the demand and supply side in their policies,” he said during one of several real estate panels held at the Democratic National Convention in Philadelphia Democrats specifically mentioned...
OPERS Lawsuit Reinstated Over Freddie Subprime Loans. The Sixth U.S. Circuit Court of Appeals overturned a lower court decision that had cleared Freddie Mac of charges that it misled investors about its involvement in the subprime mortgage market. The lawsuit was filed in 2008 by the Ohio Public Employees Retirement System, which claimed Freddie made false public financial statements that hid its exposure to risky loans. The fund alleged that it lost more than $27.2 million as the value of Freddie stock plummeted. OPERS said the 29 percent drop in stock price in 2007 followed Freddie’s disclosure of a $2 billion loss. The pension fund claimed...
Overall, Fannie Mae’s bottom line was bolstered by a strong quarter for originations: $510 billion in the second quarter compared to $380 billion in the first, according to Inside Mortgage Finance.
Under the agency’s current rules, residential servicers must tell a mortgagor about their foreclosure prevention options just once over the life of a loan.
The Consumer Financial Protection Bureau is not proposing any additional cure provisions in its proposed rule to update and clarify certain aspects of its Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, known as TRID. The TRID 2.0 proposed rule was released late last week. Former CFPB official Quyen Truong, now a partner in the Washington, DC, office of the Stroock & Stroock & Lavan LLP law firm, told...
Nonbank jumbo originators may soon find themselves at a pricing disadvantage to depositories thanks to recent events beyond their control: two jumbo conduits calling it quits and updated regulatory language that offers no comfort when it comes to curing “TRID” errors. Industry veteran Bill Dallas, who runs nonbank lender Skyline Home Loans, Calabasas, CA, put it bluntly, saying: “Banks appear to be the big jumbo winners – Union Bank and others.” He said jumbo production is a low-margin business but a necessity in California. The CEO noted...
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