Conference of State Bank Supervisors. Last week, the Conference of State Bank Supervisors and the Nationwide Mortgage Licensing System & Registry issued for the first time two quarterly publications that together present a comprehensive overview of all individuals, mortgage companies and depository institutions that make residential mortgage loans in the United States. The Nationwide View of State-Licensed Mortgage Entities collects data on companies, branches and mortgage loan originators who are state-licensed or state-registered through the NMLS. The document presents information about...
Office of Mortgage Settlement Oversight. BDO Consulting Tapped. Joseph Smith, monitor of the national mortgage settlement, has selected BDO Consulting, a division of BDO USA, LLP, as his primary professional firm. BDO will join Smith and his team for a period of three and a half years as they oversee the implementation of the settlement involving 49 states, the U.S. government and five of the nationfs largest banks. gAs I entered the process of engaging the primary professional firm, I knew it would be critical to find the right balance of independence and capacity, Smith said...
A total of 221 rulemaking requirement deadlines mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act have passed, through the first five months of the year, according to the latest Dodd-Frank progress report prepared by the Davis Polk law firm. gThis is 55.5 percent of the 398 total rulemaking requirements, and 78.9 percent of the 280 rulemaking requirements with specified deadlines,h according to the report. Further, of the 221 deadlines that have passed, 148 (67.0 percent) have been missed and 73 (33.0 percent) have been met with finalized...
Non-agency mortgage-backed security investors are hoping to influence the implementation of the recent $25 billion foreclosure settlement and ward off similar agreements in the future. They raised concerns this week at a hearing before the House Financial Services Committee’s Subcommittee on Capital Markets and Government Sponsored Enterprises. “As it stands, it will damage residential MBS markets further,” said Vincent Fiorillo, a trading/portfolio manager at Doubleline Capital, on behalf of the Association of Mortgage Investors. “By adding yet another risk premium to government intervention, it will further...
The Obama administration is on the same page as Fannie Mae and Freddie Mac’s regulator in its desire to shift some of the mortgage credit exposure the government-sponsored enterprises hold to private investors. But exactly how to develop some sort of GSE risk-sharing program continues to bedevil policymakers, a Treasury Department official noted last week. Michael Stegman, a special advisor to Treasury Secretary Timothy Geithner, explained in a speech to real estate professionals that the Treasury is “actively engaged in helping to make this [GSE risk sharing] initiative work” but the...
The settlement baked into the Residential Capital bankruptcy agreement is facing new challenges, including one from Warren Buffet’s Berkshire Hathaway and another from unsecured creditors. When ResCap announced its bankruptcy last month, it did so with a plan to sell its mortgage origination platform and servicing rights to Nationstar Mortgage, a division of Fortress Investment Group, for $4 billion and its portfolio loans to its parent company Ally Financial. Part of the deal is a release of legal liability for Ally, which will pass along some of its lingering obligations – like follow through on the...
More than 1,800 comment letters were apparently not enough. The Consumer Financial Protection Bureau reopened the comment period last week on the pending ability-to-repay rule, with an emphasis on data relating to debt-to-income ratios. The rule will define “qualified mortgages” and the Dodd-Frank Act mandates that it be finalized by January 21, 2013. Data on agency mortgages helped prompt the request for comments, and the CFPB said it is hoping for similar data on mortgages in non-agency mortgage-backed securities ...
Non-agency mortgage-backed security investors and politicians on both sides of the aisle were critical this week of the recent $25.0 billion servicing settlement. The settlement requires principal reduction loan modifications on mortgages held in five banks’ portfolios and allows the servicers to receive credit for reducing principal on mortgages in non-agency MBS. Vincent Fiorillo, a trading/portfolio manager at Doubleline Capital, noted that the Association of Mortgage Investors is not opposed to principal reduction mods ...
Walter Investment Management is scheduled next week to begin subservicing the first batch of up to 30,000 mortgages in non-agency mortgage-backed securities for Bank of America. The transfer will mark the latest shift from BofA to subservicers as part of a still-disputed $8.5 billion proposed settlement with non-agency MBS investors. Nine subservicers were approved as part of the settlement: Acqura Loan Services, Bayview Loan Servicing, FCI Lender Services, Nationstar Mortgage, Residential Credit Solutions ...
Mortgage industry participants support a new proposed definition of subprime consumer loans for banks with more than $10.0 billion in assets. However, some raised concerns that the Federal Deposit Insurance Corp.’s proposal could unnecessarily impact holdings of nontraditional mortgages. In March, the FDIC proposed a revised definition of “higher-risk” consumer, commercial and industrial loans and securities for the large bank pricing model, which determines deposit insurance rates. Instead of defining subprime loans based ...
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