The CFPB rulemaking is facing another legislative challenge from Capitol Hill, this time from H.R. 1750, the Community Lending Enhancement and Regulatory Relief Act. Introduced late last month by Rep. Blaine Luetkemeyer, R-MO, H.R. 1750 would enable community banks to raise capital more easily and exempt institutions with less than $10 billion in assets from federal mortgage escrow requirements. It also would exempt institutions with less than $10 billion in assets from qualified mortgage requirements if the institution keeps a...

In late April, the CFPB issued a final rule governing the administration of its Civil Penalty Fund, along with proposed revisions to that rule. Among the highlights of the final rule is that a victim is eligible for payment from the fund if a final order in a bureau enforcement action imposed a civil penalty for the violation or violations that harmed the victim. That means that payments from the fund would only be made to compensate victims for the harms they suffered from a violation for which penalties were...

Late last month, members and staff of the Mortgage Bankers Association met with key personnel from the CFPB to highlight ongoing concerns with aspects of the bureau’s ability-to-repay, qualified mortgage rulemaking. Some of the issues the organization raised with the regulators were not dealt with by the bureau’s recent proposed clarifications, including questions about loan originator compensation. Currently, LO compensation to individual originator employees is factored into the calculation of the QM’s three...

The top compliance concerns for lenders stem from CFPB mandates such as the combined Truth in Lending and Good Faith Estimate disclosure form, as well as other bureau-related rulemakings, according to the seventh annual compliance survey from Laguna Hills, CA-based QuestSoft, a provider of automated compliance software and services to the mortgage, banking and credit union industries. The combined TILA/GFE rules ranked as the highest concern among lenders, with 58.8 percent citing it as a high concern, followed by as-yet-undefined...

Rep. Gary Miller, R-CA, and two other members of the House recently introduced the Preserving Access to Manufactured Housing Act, legislation they said will ensure that new regulations released earlier this year by the CFPB to address high-cost mortgage loans do not further hinder the availability of mortgage credit for manufactured homes. Miller said the concern is, without their legislation, financing options for manufactured housing would be greatly limited, leaving thousands of manufactured home customers...

Nevada Bill Would Conflict With CFPB Servicing Rules. Last week, the Mortgage Bankers Association wrote members of the Nevada Assembly Judiciary Committee to warn that state Senate Bill 321, which would enact state-specific mortgage servicing rules, would conflict with the CFPB’s comprehensive, national servicing rules that were finalized in January. S.B. 321 would, among other things, authorize a defendant in a judicial foreclosure action to elect mediation...

May/to be announced: The House Financial Services Committee has reportedly called upon two, as of yet unnamed CFPB officials to testify at a hearing to be announced later this month on the agency’s ability-to-repay, ‘qualified mortgage’ rule that was promulgated in January. Additional details were not available as Inside the CFPB went to press. May 8: The bureau plans to host a field hearing at Miami Dade College in Florida “on student loan borrowers,” and expects to feature remarks from Director Richard Cordray...

Standard & Poor’s, along with Moody’s Investors Service, last week settled a lawsuit involving their pre-financial crisis securities ratings before it got to a jury trial, but S&P suffered a setback with another ratings challenge lawsuit brought by Connecticut state officials. Experts predict a pickup in MBS litigation ahead of pending filing deadlines for legal challenges. S&P and Moody’s reached the confidential settlement with a group of 14 plantiffs led by Abu Dhabi Commercial Bank and King County, WA. Abu Dhabi and the over investors filed suit in 2008 and 2009 in Manhattan federal court claiming that the defendants misled them by allegedly inflating ratings on two structured investment vehicles they purchased. By settling the investors’ lawsuit, which claimed $638 million in losses, S&P and Moody’s were able...

There were no real surprises this week from the Federal Open Market Committee, which announced it plans to continue purchasing additional agency MBS at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. But observers continue to contemplate the Fed’s eventual exit strategy and how it will affect the markets. “The committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency MBS in agency MBS and of rolling over maturing Treasury securities at auction,” the FOMC said in what is becoming standard, boilerplate language. “Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.” Also, the committee plans...

Federal regulators said they will collectively work with Congress to reduce the agency market share of MBS issuance. The members of the Financial Stability Oversight Council said completion of the qualified-residential mortgage rule will also help increase non-agency activity. “The council recommends that the Treasury Department, the Department of Housing and Urban Development, and the Federal Housing Finance Agency continue to work with Congress and other stakeholders to develop and implement a broad plan to reform the housing finance system,” the FSOC said in its 2013 annual report, released late last week. Tobias Adrian, a vice president at the Federal Reserve Bank of New York and contributor to the report, said...