For mortgage bankers, it was another trying week in TRID purgatory: A mid-sized nonbank exited the correspondent jumbo market because of concerns over legal liability and separately it appeared industry trade groups have given up hope that the Consumer Financial Protection Bureau will issue any type of formal guidance on cures. Meanwhile, the TRID scratch-and-dent market continues to hum along and the consumer watchdog agency has begun examining residential lenders for compliance with the integrated disclosure rule. “TRID exams have commenced...

The new principal-reduction option for Fannie Mae and Freddie Mac loan modifications could end up affecting only about 6,000 delinquent borrowers, according to an Urban Institute analysis. The Federal Housing Finance Agency late last week announced that the government-sponsored enterprises would do principal writedowns for a small population of distressed borrowers. The program is limited to loans that were seriously delinquent as of March 31, had loan amounts of less than $250,000 and unpaid debt, including arrearages, exceeding 115 percent of the current market value of the home. The FHFA estimated...

Nonbanks serviced $2.085 trillion of agency MBS at the end of March, a 2.9 percent increase from the fourth quarter.

Wells Fargo was the top seller to the GSEs in the first quarter with $22.75 billion, followed by Quicken Loans ($11.33 billion) and JPMorgan Chase ($6.87 billion).

Would you lend money to your relatives? One mortgage firm has made it a business model...

Shelby noted that Congress “has a responsibility to conduct proper oversight” over the FHFA and the GSEs.

Wells Fargo spokesman Tom Goyda called FHA lending an “important tool” for the bank.

MBA chief David Stevens told Inside The GSEs that given the recent growth in the nonbank servicing sector, it’s appropriate for regulatory authorities to ensure these institutions are effectively supervised.

Fannie Mae and Freddie Mac are not conducting loan-level reviews for compliance with the CFPB’s integrated disclosure, and that threatens investors in the pair’s future credit-risk transfer transactions with the possibility of some modest losses because of lender compliance violations, according to a recent report from Moody’s Investor Service. “We expect overall losses on these transactions owing to TRID violations to be fairly small, despite our expectations that the frequency of violations will be high, at least initially,” analysts at the rating service said. “Furthermore, lender representations and warranties and the government-sponsored enterprises’ ability to remove defective loans from the transactions will likely mitigate some of these losses.” Damages for TRID violations are less significant for a securitization transaction compared ...