If you’re a mortgage lender waiting for your first examination from the CFPB, there are three important principles you should be aware of, according to Burton Embry, executive vice president and chief compliance officer of Primary Residential Mortgage, based in Salt Lake City, UT. Delivering a presentation during a webinar sponsored by the California Mortgage Bankers Association last week, Embry began with the obvious: Consumer protection. “One of the CFPB’s big focuses is on consumers. It’s all about consumer protection, we all know that,” he said. “So when they are looking at your policies and procedures, for example, that’s one of the things they are looking at: the risk to consumers.”In other words, “How have you written your policies ...
CFPB Moves to Defend its Supervisory Information in Ocwen Case. The CFPB recently asked a federal judge to let it intervene in a whistleblower case brought against Ocwen Loan Servicing in order to protect the confidentiality of its supervisory information. “The bureau seeks to intervene for the limited purpose of invoking the bank examination privilege and the bureau’s regulations to protect confidential and privileged bureau supervisory records and information related to the bureau’s supervision of Ocwen,” the CFPB said in its motion filed in U.S. District Court for the Eastern District of Texas, Sherman Division. Among its legal arguments provided to U.S. District Judge Amos Mazzant, the CFPB said its regulatory and supervisory interest could be impaired if it is ...
The increase in first-time homebuyer volume and market share has occurred without looser underwriting in terms of credit scores and loan-to-value ratios…
Outreach and lender-education efforts by industry groups, such as the National Association of Realtors and the National Association of Home Builders, have boosted refis as well...
A federal appeals court in New York this week will hear arguments from African-American subprime borrowers in Detroit in connection with a proposed class action challenging Morgan Stanley’s mortgage securitization practices during the subprime mortgage boom. The American Civil Liberties Union and its partners are seeking class-action status for the borrowers’ Fair Housing Act claims, which were initially rejected by a lower court. The court previously ruled that each borrower would have to sue on his or her own. The issue on appeal at the U.S. Court of Appeals for the Second Circuit is...
A top mortgage-industry executive called for the establishment of criteria for adjusting FHA mortgage-insurance premiums to limit taxpayer exposure and allow private capital to play a larger role in the mortgage market. In a recent blog, Patrick Sinks, president/CEO of Mortgage Guaranty Insurance Corp., noted growing talk in the mortgage industry of another possible FHA premium reduction following last year’s 50 basis point cut. However, before that happens ...
In a finding with ominous implications for the mortgage lending industry, a significant majority, 81 percent, of respondents in a recent opinion survey continues to believe that housing affordability is a problem in the U.S. The concern for lenders is that the more Americans believe the cost of buying a home is out of their reach, the greater the odds are they won’t even bother to shop for a house or a mortgage or save for a downpayment. “Stable, affordable housing is viewed as ...
Freddie Completes $706 Million NPL Sale. Freddie Mac announced this week that it sold a large chunk of a $706 million deeply delinquent loan portfolio to Lone Star Funds’ LSF9 Mortgage Holdings. LSF9 was the winning bidder on four pools and Upland Mortgage Acquisition Company II won one. In total, 2,879 mortgage loans were offered through five separate mortgage pools. The loans have been delinquent for an average of approximately five years. As the company continues to trim its retained portfolio, the new sale marks the GSE’s third nonperforming loan auction of the year. The first was a $1.4 billion sale in March, followed by a $130 million transaction in June. Fannie Announces Latest NPL Sale. Last week Fannie Mae announced its latest sale of non-performing loans, including...
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