It should come as no surprise to mortgage originators and servicers that the CFPB has significantly ramped up its examination activity of their operations over the last year. Data provided exclusively to Inside the CFPB from the bureau per a Freedom of Information Act request reveal there was a 70 percent increase in mortgage-related exams in 2015 from the prior year. As the accompanying chart illustrates, nonbanks have been having an even more active degree of scrutiny from the bureau than have depository institutions. Nonbank originators have seen an 85.7 percent increase in exam activity year over year, versus depositories, which have seen a rise of “only” 42.9 percent during that period. And it is even worse for nonbank servicers. ...
The CFPB should consider increasing the asset threshold limit to be considered a “small creditor” under its ability-to-repay/qualified mortgage rule, from $2 billion to $10 billion, so that more small lenders may take advantage of the regulatory relief a recent interim final rule provides, according to the American Bankers Association. The interim final rule, which was issued March 25, 2016, expanded the availability of certain special provisions for small lenders operating in rural or underserved areas. The proposal amends some of the definitions in the ATR rule, as per the Helping Expand Lending Practices in Rural Communities Act of 2015, which was enacted Dec. 4, 2015. Under the interim rule, small creditors – or banks that made no more than 2,000 ...
Mortgage Warehouse Volume at Horizon Bancorp Declines in First Quarter, TRID Remains an Issue. Horizon Bancorp announced recently that its mortgage warehouse lending efforts were down in the first quarter of 2016. The bank had $119.88 million in mortgage warehouse loans on its balance sheet at the end of the first quarter of 2016, down 17.2 percent from the previous quarter and down 33.0 percent from the first quarter of 2015.... Flagstar Boosts Originations and Income in 1Q16, Is Comfortable with TRID. Flagstar Bancorp reported an increase in originations and net income for the first quarter of 2016 with company executives noting that the bank is comfortable with the TRID mortgage disclosure requirements...
Fannie, Freddie and Ginnie continue to dominate in multifamily mortgage securitization, capturing a combined 93.6 percent of the market in the first quarter.
Many borrowers who apply for a mortgage with a partner miss out on lower interest rates due to lenders’ standards regarding credit scores, according to research by economists at the Federal Reserve. Applying for a mortgage solo can lead to substantial cost savings, though determining whether to take that option can be complicated. Geng Li, Weifeng Wu, and Vincent Yao detailed their findings in a FEDS Notes article published by the Fed. The analysis was based on ...
Most borrowers are having a positive experience with the new loan estimate and closing disclosure forms now in use under the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID, according to a new survey from TD Bank. The rule integrates the consumer disclosures required under both the Truth in Lending Act and the Real Estate Settlement Procedures Act. Of those responding to the survey, 40 percent reported having had an “excellent” experience ...
RSS