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Short Takes: A 25 Percent Chance Uncle Sam Will Lose the GSE Lawsuits / Risk-Sharing Depletes Shareholder Value / Former Fannie CEO Mudd Settles with SEC / Mudd’s Second Act Didn’t Last Long / A New Hire for Closing Corp.

August 23, 2016
Paul Muolo
KBW believes all the GSE risk-sharing deals will “put further pressure” on the long-term value of the stocks of Fannie and Freddie…
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New GSE Application Allows for Cell Phone Numbers, Email Address, More. Industry Applauds

August 23, 2016
Paul Muolo
Regarding the omission of cell phone numbers and email addresses, one Florida-based mortgage executive said, “It drove us crazy – of all things not to have in this day and age.”
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The Final Tally: Nonbanks Battered by MSR Accounting in 2Q16

August 23, 2016
John Bancroft
Nine nonbanks reported a combined net loss of $339.5 million on mortgage-banking activity for 2Q16, but that was actually an improvement...
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CMC Warns About FDCPA, Fears Servicing Costs Will Rise Even More

August 23, 2016
Paul Muolo
The CMC – which represents several large commercial banks – calls the FDCPA an “antiquated and poorly drafted" statute...
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Mortgage M&A Activity Continues Apace; Eight Deals in Two Months

August 22, 2016
Paul Muolo
Meanwhile, it’s anticipated that private equity firms could play an even larger role...
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Non-QM Lending Stuck in a Funk?

August 22, 2016
Thomas Ressler
Investors are more willing to buy non-QM loans as long as they are Alt A in nature, industry sources told Inside the CFPB…
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Other News in Brief

August 22, 2016
The Federal Deposit Insurance Corp. last week released on its website updated technical assistance videos on the CFPB’s Ability-to-Repay/qualified mortgage rule. “The updated videos provide financial institution management, compliance officers and staff with resources for a better understanding of the current requirements of the ATR and QM rule,” it said. ... CFPB Director Richard Cordray last week responded to two members of the Senate Banking, Housing and Urban Affairs Committee who had recently pressed him to consider exempting small community banks and credit unions from as much of its rulemaking as possible...
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Does TRID Definition of Application Trigger HMDA Reporting? Maybe

August 22, 2016
One mortgage lender recently inquired of Michael Goldhirsh, director of legal and regulatory compliance for the Lenders Compliance Group, as to whether the definition of “application” in the CFPB’s TILA/RESPA Integrated Disclosure rule (TRID) triggers or otherwise affects reporting under the Home Mortgage Disclosure Act. In a recent blog posting, he replied: “The short answer is that receipt of some or all of the six pieces of TRID application information does not necessarily trigger an application for purposes of HMDA reporting.” Goldhirsh went on to explain that Regulation C defines an application for HMDA reporting purposes as an oral or written request for a home purchase loan, a home improvement loan, or a refinancing that is made in accordance with ...
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New Requirements in NY Pose Challenges for Servicers

August 22, 2016
New legal requirements enacted in the state of New York in the wake of the financial crisis pose particular compliance challenges for mortgage servicers, according to a new report by analysts at S&P Global Ratings. The S&P team recently reviewed a series of laws the state legislature passed in June that attempts to address several issues related to “zombie” foreclosures, which refers to the phenomenon of a servicer initiating foreclosure on a vacant property but not going so far as to actually take title. Urban community activists complain such properties languish unsold for a prolonged period of time, contributing to neighborhood blight in communities least able to handle it – hence, state lawmakers decided to act.One resulting requirement “imposes conditions ...
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Most Small Lenders Felt Rushed by CFPB’s SBREFA Process, GAO Finds

August 22, 2016
Most of the small-entity participants in the review processes run by the CFPB before it came out with four major mortgage rules felt they were hurried by the process and unsatisfied with the final results, the Government Accountability Office said in a recent report. The GAO took a look at the experience of the 69 Small Business Regulatory Enforcement Fairness Act (SBREFA) panel participants involved in evaluating the likely effects of the CFPB’s TILA/RESPA Integrated Disclosure rule (TRID), the mortgage servicing regulation, its loan originator compensation rule, and the Home Mortgage Disclosure Act regulation. Of the 57 small-entity representatives GAO interviewed, “two-thirds stated not enough time was allotted to discuss at least one of the topics on the panel agenda ...
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