As they approach their eighth year in conservatorship, Fannie Mae and Freddie Mac generate a lot of revenue for the government and dominate the conventional-conforming mortgage market. But both government-sponsored enterprises are forced to hold less and less capital, and a bad quarter or two could force another round of bailouts. Aside from lawsuits by disgruntled GSE shareholders, pressure appears to be growing for a new approach that would allow the two to rebuild their capital. According to reports, Rep. Mick Mulvaney, R-SC, may introduce such a bill in one of the least hospitable places it could land, the House Financial Services Committee. As of press time Mulvaney’s office has not returned...
There is no doubt that nonbank mortgage lenders are as heavily regulated as banks when it comes to consumer protection, some industry executives say, but the level of scrutiny for safety and soundness may be higher for depository institutions. The Community Home Lenders Association asserts that nonbanks are subject to more consumer protections than banks and have virtually identical regulatory burdens imposed by product regulations such as those for the FHA, VA, Ginnie Mae, Fannie Mae and Freddie Mac. “While nonbanks are heavily regulated at the state level, they are...
Jumbo originations have increased sharply since 2008 but only about 5 percent of the loans have been included in jumbo MBS, which means the product is residing in bank portfolios...
Mortgage lending industry representatives called on the CFPB to establish a range of data safeguards if the agency intends to proceed with its expressed interest in “normalizing” its consumer complaint data.For the bureau’s purposes, “normalizing” the data refers to ways in which the agency could take the raw data it receives from its consumer complaint online portal and transform it to make it meaningful and useful to the general public.In commenting on the bureau’s recently released request for information on the subject, the American Bankers Association said it generally supports the concept and objective of providing context for the data. However, it “does not believe that any normalization strategy should proceed unless and until the bureau adopts measures ...
Consumer complaints to the CFPB about credit reporting were down slightly from the first quarter and up modestly at the mid-year mark versus a year ago, according to an analysis by Inside the CFPB. However, some dramatic differences were in play among the top 10 subjects of complaints. The most notable exception to the overall moderate trend line was sixth-ranked CoreLogic, which saw consumer gripes skyrocket an eye-popping 900.0 percent at the six-month mark compared to 2014. LexisNexis was also bad, with a 241.7 percent leap during the same time period. And Early Warning Services turned in the third-worst performance among the top 10, demonstrating a 100.0 percent increase in consumer criticisms. Overall, however, the results were far tamer. First ...
The CFPB and the Federal Housing Finance Agency jointly released two technical reports recently about the development of the National Mortgage Database (NMDB) and the quarterly National Survey of Mortgage Borrowers (NSMB). The NMDB project is a multi-year project being jointly undertaken by the two agencies. “The project is designed to provide a rich source of information about the U.S. mortgage market based on a five percent sample of residential mortgages,” the first technical report stated. The NMDB will enable the FHFA to meet current statutory requirements to conduct a national mortgage market survey, collect data on the characteristics of individual mortgages, including those eligible for purchase by Fannie Mae and Freddie Mac and those that are not, and including ...
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