The CFPB and 25 states filed amicus briefs in a case pending before the Supreme Court of the United States, Jesinoski v. Countrywide Home Loans Inc., that could resolve a circuit split over the recession of a mortgage under the Truth in Lending Act. The Truth in Lending Act provides that a borrower “shall have the right to rescind the transaction until midnight of the third business day following ... the delivery of the information and rescission forms required under this section ... by notifying the creditor ... of his intention to do so.” TILA further creates a time limit for the exercise of this right, providing that the borrower’s “right of rescission shall expire three years after the date ...

Essex Bank launched a wholesale group while Live Well Financial plans to hire more than 300 loan officers.

Mortgage lenders are getting weary of the seemingly never-ending supply of new regulations and proposals coming from the CFPB – with the latest being last month’s issuance of the bureau’s proposed rulemaking to ratchet up lender reporting requirements under the Home Mortgage Disclosure Act. Lenders of all size are concerned that the proposal goes beyond what is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act and means increased compliance costs that will be passed onto consumers. And representatives of smaller institutions fear they will once again be set at a competitive disadvantage vis-à-vis larger lenders. Additionally, consumer data privacy considerations have emerged as another concern. The bureau, for its part, pitched the proposal as a way to improve ...

Mortgage origination fees and third-party fees increased in the past year, according to a new survey by Bankrate.

FHA violations were related to lender approval, loan origination and mortgage servicing practices.

First Republic Bank and JPMorgan Chase were the top two contributors to the scant four jumbo MBS deals that hit the market during the second quarter.

Comment Period for Single Family Handbook Extended. The FHA has extended from July 29 to Aug. 15, 2014 the deadline for submitting feedback on certain sections within the draft Single Family Handbook. Comments are being sought on sections “Doing Business with FHA – FHA Lenders and Mortgagees” and “Quality Control, Oversight and compliance." Both sections’ contents, as well as supporting information, are posted for review and feedback on the SF Drafting Table in the FHA website. Each section’s web page also contains highlights of changes, frequently asked questions (FAQs) and a feedback response worksheet. Julian Castro as New HUD Secretary. Julian Castro was sworn in as the 16th Secretary of the Department of Housing and Urban Development on July 28. He replaces Shaun Donovan, who is now director of the ...

JPMorgan Chase and Wells Fargo have both paid major settlements regarding FHA lending, and both have curtailed their participation in the program, according to a new analysis of Ginnie Mae data by Inside FHA Lending. During the first six months of 2013, Chase accounted for 11.8 percent of the FHA mortgages in newly issued Ginnie mortgage-backed securities. During the first half of 2014, its volume of FHA loans in Ginnie pools was down 75.8 percent from the same period last year, and its share of the market sank more than half, to just 5.1 percent. Jamie Dimon, Chase’s president and CEO, recently questioned why the bank should stay in the FHA business when legal costs are so high. The Ginnie data show it ... [1 chart]

The delinquency rate for residential FHA-insured mortgages fell at the halfway mark of 2014 from the end of the fourth quarter last year, a result of improved overall loan performance, strong credit standards and an improving, albeit slowly, economy, an Inside FHA Lending analysis of agency data suggests. Although the number of FHA lenders included in the analysis has doubled since year-end 2013, delinquency rates in the 30-60 days and 90-day plus buckets appear to be trending downward. As of June 30, FHA delinquencies across the board were down to 13.3 percent from 15.2 percent as of Dec. 30, 2013. The seriously delinquent rate – the percentage of loans that are 90 days or more past due – has dropped to 7.14 percent from 8.08 percent over the same period. The delinquency rate of FHA loans that are at least one payment past due also fell to ... [1 chart]

The FHA’s widespread reduction in loan limits for 2014 has had a mixed impact on production levels so far this year, according to a new Inside FHA Lending analysis of FHA endorsement data. Through the first four months of 2014, FHA endorsements were down 55.6 percent from the same period last year. But in counties where loan limits were lowered, FHA production was down 57.5 percent from early 2013. In the relatively few counties where loan limits actually increased in 2014, FHA endorsements were also down from a year ago, but by a less severe 47.4 percent. The biggest decline in endorsements has been in refinances, especially FHA-to-FHA refinances. In areas with lowered loan limits, production of these loans has plummeted 87.0 percent, and even areas with raised loan limits saw an 81.1 percent drop in streamlined refis. Purchase-mortgage originations have taken less of a ...