Despite the 90 percent estimate offered by Applegate, the government-sponsored enterprises’ use of the CSP – let alone the GSE single security – looks to be a ways off.
Servicing federal student loans would likely become more costly and cumbersome under a set of best practices recently issued by a White House-sponsored interagency panel. Back in March, the Obama administration assembled a group of officials from the Treasury Department, the Department of Education, the Office of Management and Budget, and the Domestic Policy Council to monitor trends in the government’s student loan portfolio, budget costs and borrower assistance efforts. As part of that effort, the task force was directed...
The Collingwood Group says disruption may come to the mortgage finance industry because the current business model is too challenging, inefficient, costly and unresponsive to customer and business needs. “With no fundamental changes to origination processes in decades, lost efficiency, growing regulatory hurdles, high costs and low profits, there is little doubt the mortgage industry is ripe for disruption,” the firm said in a recent paper. Marketplace lenders and crowdfunders ...
The FHA will not issue a new case number for any FHA-to-FHA refinance if the current mortgage has a repair or rehabilitation escrow account in FHA Connection. The change, which is one of several updates to FHA Single Family Policy Handbook 4000.1, applies only to FHA streamline refis. It aims to ensure that escrow funds of the mortgage being refinanced are properly applied as well as conform to system requirements. The updated sections become effective on Sept. 14, 2015. Another change clarifies that the payoff statement for the mortgage being refinanced is the only document required when calculating the maximum mortgage amount for simple refi transactions. In addition, guidance for loan-to-value limits for cash-out refis has been updated to clarify that the 85 percent LTV restriction applies only to cash-out refis. HUD also noted that appraisers have flexibility in regards to when inspections should ...
Emerging eClosing technology may make borrowers a little smarter, according to the Consumer Financial Protection Bureau, but it isn’t easy for lenders to implement. A CFPB report on the agency’s eClosing project found that borrowers who participated in the pilot scored slightly higher in a quiz on the closing process than did those who relied on good-old paper. The eClosers were...
A new research paper analyzing the risks and opportunities for disruption in the housing finance system notes that new business models and services make the entire mortgage industry ripe for change. Although the paper by the Collingwood Group notes that disruption is inevitable in any industry, it said it is most predictable in an industry faced with conditions where the current model is too challenging, inefficient, costly and unresponsive to customer and business needs. “With no fundamental changes to origination processes in decades, lost efficiency, growing regulatory hurdles, high costs and low profits, there is...
Borrower participants in the CFPB’s eClosing pilot project scored noticeably higher on three key metrics – efficiency, empowerment and understanding – the bureau announced during a public forum on the project last week. The CFPB surveyed consumers about their perceptions of how efficient the overall process was. This included their perceptions about delays, errors in the documents, and the time between important steps. The study found a 17 percent positive difference in scores for borrowers using eClosings compared to borrowers using paper documents. The CFPB also asked consumers how empowered they felt after the process. The survey asked consumers to respond to statements such as, “I felt I had control over the closing process” or “I felt empowered to play an active ...
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