Late last week, the CFPB issued another proposal to address questions regarding “qualified mortgages” and mortgage servicing that have come up since the agency first issued rulemakings on those topics in January. The new proposed rule addresses five topics, including debt-to-income ratio. Under the ability-to-repay rule, a lender may make a qualified mortgage, a loan for which certain features are prohibited and fees that can be charged are limited. The rule provides for different types of QMs, the main type requiring that...
The CFPB has issued two compliance guides for small entities that had to do with its escrow rule under the Truth in Lending Act and the ability-to-repay rule, both issued in January. The bureau said its goal with the guides is to provide an overview of the rules in a plain language and frequently asked question format, “which makes the content more accessible and consumable for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.” The consumer agency also emphasized that...
Sometimes the most significant thing to come out of an encounter with a newsmaker is not what he says but what he hears. Such was the case last week when CFPB Acting Deputy Director Steven Antonakes addressed attendees at the American Bankers Association’s government relations event in Washington, DC, and took questions afterwards. During the question-and-answer portion after his prepared remarks, one attendee told Antonakes that small banks in Oklahoma are exiting the mortgage business in a number of small communities over fears of potential...
Perhaps, the FHA Mutual Mortgage Insurance fund won't need a bailout after all: In 1Q delinquencies fell by just over 9 percent, according to exclusive figures compiled by Inside Mortgage Finance publications.
VA Issues Warning. Loans reported for guaranty more than 60 days after loan closing will be subject to automatic full review, the Department of Veterans Affairs warned. In guidance issued earlier this month, the VA reminded lenders that they must enter guaranty requests in the VA’s webLGY system within 60 days of closing or risk going through another review and additional requirements. If a loan is guaranteed late, the lender must include a brief explanation and a certification that the loan was current when they submitted the file to VA. Timely reporting of loans for VA guaranty ensures ...
The overall delinquency rate among FHA-insured portfolios dropped during the first three months of 2013 while little change was seen in the foreclosure rate quarter over quarter, according to an Inside FHA Lending analysis of FHA data. Top FHA servicer data showed that 15.3 percent of the more than 7.68 million active FHA-insured loans were delinquent as of the end of the first quarter. Although elevated, that percentage was down from the 16.9 percent overall delinquency rate reported by FHA servicers at the end of the fourth quarter last year. The share of FHA-insured mortgages in foreclosure remained flat from quarter to quarter, a sign that the housing crisis may have ... [1 chart]
Ginnie Mae is seeking feedback from dealers, issuers and investors about whether to continue to maintain two separate mortgage-backed securities programs or to consolidate them under a single security. Comments are also being sought on other possible options. Bloomberg.com recently reported that Ginnie Mae sent out questionnaires to Wall Street broker-dealers for their input on the future of both the Ginnie Mae I and Ginnie Mae II MBS programs. The agency has been considering whether it should merge the programs for some time. The Ginnie Mae I single-issuer pool program with stringent pooling requirements began in ...
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