The CFPB, under its authority to administer the Equal Credit Opportunity Act and Regulation B, has bestowed its official approval upon the revised and redesigned Uniform Residential Loan Application, the standardized form used by borrowers to apply for a mortgage loan, issued earlier this year by Fannie Mae and Freddie Mac. The issuance of the 2016 URLA was part of the effort by the two government-sponsored enterprises to update the corresponding Uniform Loan Application Dataset (ULAD). Staff of the CFPB has reviewed the 2016 URLA as per a request by the two GSEs and the Federal Housing Finance Agency, their regulator and conservator, for official approval under ECOA and Regulation B. Regulation B Section 1002.5(b) provides rules concerning requests for ...
“We hope that you will help us to push back on current efforts to gift the proprietary infrastructure of Fannie Mae and Freddie Mac to the big banks,” the clergymen write.
The Federal Housing Finance Agency recently redrafted the proposed indemnification payments rule to make it easier to understand. The proposed rule looks to replace a provision concerning indemnification payments by regulated entities in conservatorship with one that clearly states that the regulation does not apply to such entities. This issue has been brewing since 2008 when the FHFA published an interim final rule on severance agreements and indemnification payments. It then re-proposed the proposed amendment on indemnification payments in 2009. Now the agency said it wants to clarify the fact that it does not consider indemnification payments to be subject to FHFA rules and procedures related to compensation.
Roughly a quarter of the single-family business that passed through Fannie Mae and Freddie Mac during the first half of 2016 resulted from special treatment bestowed on the GSEs following the housing market collapse. The biggest factor is the so-called GSE patch, which exempts Fannie and Freddie from underwriting restrictions on “qualified mortgages” that are part of the ability-to-repay rule promulgated by the Consumer Financial Protection Bureau. For mortgages to get QM status, the debt-to-income ratio has to be 43 percent or less. However, the CFPB rule waives that requirement for Fannie and Freddie as long as they remain in conservatorship, up to a point.
Fannie Mae’s implementation of its updated loan origination tool, Desktop Underwriter 10.0, this week, represents the first widespread use of trended credit data in the mortgage industry and mortgage bankers are optimistic. It was one of the most anticipated changes in the rollout and was designed to give lenders a better understanding of a potential borrower’s creditworthiness...
RSS