Smaller depositories held 8.0 percent of the banking industry’s total mortgage servicing assets in 2015, up from a share of less than 2.0 percent as recently as 2009.
Non-agency mortgage-backed security issuers and investors were getting more comfortable in recent years with third-party due diligence reviews of less than 100 percent of the mortgages in an MBS due to the exceptionally strong performance of new originations. However, analysts at Morningstar Credit Ratings suggest that most non-agency MBS backed by new mortgages will be subject to full reviews due to uncertainty regarding the CFPB’s integrated-disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act, otherwise known as TRID. The reviews help identify and cure compliance issues and protect MBS investors from TRID-related losses. “Most post-crisis transactions carry out due diligence on every loan, and we...
Last week, at their national convention in Cleveland, the Republicans issued their 2016 campaign platform, which featured some particularly sharp rhetoric towards the CFPB. The GOP called for either getting rid of the agency in the broader context of repealing and replacing the Dodd-Frank Act, or at least altering the bureau’s leadership structure and its funding mechanism. If they can’t abolish the CFPB outright, the Republicans want to replace the current single directorship with a bipartisan commission and subject the bureau to the congressional appropriations process in lieu of its funding from the Federal Reserve. “The worst of Dodd-Frank is the CFPB, deliberately designed to be a rogue agency,” the platform stated.
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