One industry source noted: “On January 20, President Trump will be issuing an executive order that freezes all past actions over a certain period of time. The FHA premium reduction gets swept into this.”
DB was faulted for failing to disclose second liens on mortgages in MBS and for concealing refreshed credit scores that were worse that the credit scores disclosed to investors.
One mortgage insurance lobbyist, when informed of the possibility, called it “great news” while two lenders we interviewed said it was an awful development…
Late last week, the District of Columbia Court of Appeals disregarded the objections of the CFPB and gave PHH Corp. permission to respond to the federal government’s arguments in support of en banc review of the court’s earlier three-judge panel decision.“Upon consideration of petitioners’ motion for leave to file a supplemental response to petition for rehearing en banc, the opposition thereto, and the reply, it is ordered that the motion be granted,” 11 of the 12 judges wrote in an order issued Jan. 13. PHH’s supplemental response is due Jan. 27, 2017, and is not to exceed 15 pages. Back in October, the three Republican appointees ruled that the CFPB’s leadership structure involving a single director who can be ...
While many in the mortgage industry wait for the District of Columbia Circuit Court of Appeals to decide whether to rehear the arguments of the CFPB in its wrangling with PHH, the plaintiffs in State National Bank of Big Spring, Texas, et al. v. Lew, et al. have stepped back onto the legal stage at the district court level. Specifically, “Plaintiffs respectfully move [the U.S. District Court for the District of Columbia] to hold a status conference at its earliest convenience to determine how this case ... can be most efficiently adjudicated in light of the CFPB’s petition for en banc review of the panel decision in PHH Corp. v. CFPB,” State National Bank and its parties asked the appeals ...
The American Bankers Association sent a letter to the leaders of Congress recently, urging adoption of a bipartisan regulatory relief package that would provide unspecified reform of the CFPB and address an expanded definition of a qualified mortgage. When it comes to the bureau, the ABA urged sensible regulation by restoring “balance to the regulatory process, including Consumer Financial Protection Bureau reform,” and by focusing on promoting both economic growth and safety and soundness. On the QM point, the organization asked lawmakers to “reform mortgage regulations that have raised costs and prevented banks from flexibly serving their customers without enhancing consumer protections or safety and soundness. Most crucially, deeming loans held in portfolio as qualified mortgages will expand safe and ...
The U.S. Department of Justice recently reached a settlement with two jointly owned but independently operated banks in Ohio, Union Savings Bank and Guardian Savings Bank, resolving allegations that the pair engaged in a pattern or practice of redlining predominantly African-American neighborhoods in and around the Ohio cities of Cincinnati, Columbus and Dayton, as well as in Indianapolis. According to the government’s complaint, Union (with $2.7 billion in assets and 29 branches) and Guardian (with $861 million in assets and 11 branches) violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices. The Justice Department alleges that, from at least 2010 ...
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