Add loan-originator compensation rules to the list of things hindering the origination of loans that fall outside the qualified-mortgage standard. Bob Magee, chief investment officer at Shellpoint Partners, said many loan officers and brokers are reluctant to work on non-QMs because the loans take more time to originate, often get rejected and yet tend to offer the same compensation as an agency mortgage. “If I have loan officers who are paid on a commission for ...

Some have suggested that it’s no wonder that several mortgage company owners – including those who control specialty servicers – are contemplating selling their companies.

Sources told IMFnews that one large loan origination system (LOS) vendor was struggling to make programming deadlines ahead of the TRID rule, a situation that had caught the attention of the CFPB.

One of the MI’s key products is lender-paid mortgage insurance, which has come under regulatory scrutiny.

One of the defendants, Intercontinental Capital Group, Bohemia, NY, has already settled and will pay $424,859.

On a year-to-date basis, total MBS and ABS issuance was up 37.7 percent from the first nine months of 2014.

Officials at the Consumer Financial Protection Bureau and the Federal Reserve have gone on the offensive to refute claims from lenders and their advocates regarding the ability-to-repay rule. At a hearing this week by the House Financial Services Committee, CFPB Director Richard Cordray noted that he recently met with the CEOs of the top 40 mortgage companies as part of an event hosted by the Mortgage Bankers Association. Cordray said the CEOs revealed that none of the lenders have faced lawsuits alleging violations of standards for qualified mortgages. “All this foaming at the mouth about legal liability did not...[Includes one data table]

One source, angered by Cordray's comments, said, "No, Mr. Director. Those concerns have eliminated non-QM loans, which come with protection against frivolous lawsuits. That’s why no one except a perfect borrower can get a loan…”

One industry observer who anticipates a big-margin vote indicated he expects the bill will split rank-and-file Democrats from their leadership caucus.

The deal includes a provision allowing Bayview to sell loans out of the MBS one year from now.