Potential mortgage borrowers with bad credit or no credit should proceed with caution if they have been offered a subprime mortgage, according to advice from the Consumer Financial Protection Bureau. The CFPB published a blog post this week focusing on the homebuying process for people with “poor” credit scores. The post, part of a series on home purchase advice, was authored by Megan Thibos, a policy analyst with the CFPB’s mortgage markets team. The post suggested that ...
The FHA is nearing full implementation of a new loan review system (LRS) for managing FHA’s Title II single-family quality-control processes. No specific implementation date has been set but it could be sometime in the second quarter, the agency said. The LRS builds on FHA’s efforts to align the documentation of loan-review results. In addition, it incorporates the Single-Family Housing Loan Quality Assessment Methodology or defect taxonomy.The FHA said the new system would not be used to manage any aspect of the agency’s standard loan origination or endorsement processes. Rather, it would be used to review of test cases submitted by lenders seeking unconditional direct-endorsement authority. It would be used as well for various post-endorsement reviews of forward single-family loans. After the ...
Relators in a False Claims Act lawsuit must allege misconduct that has not already been publicly disclosed or risk dismissal of their qui tam claims, according to the U.S. Appeals Court for the Sixth Circuit. In U.S. ex rel. Advocates for Basic Legal Equality, Inc. v. U.S. Bank, the court ruled that whistleblowers cannot raise “substantially the same allegations or transactions” that have been previously alleged in an action or claim and publicly disclosed. The qui tam plaintiff must be the original source of the allegations, the court said. Only certain disclosures trigger the prohibition, the court noted. They include disclosures “in a federal criminal, civil or administrative hearing in which the government or its agent is a party,” or in a Government Accountability Office or other federal report, hearing, audit or investigation, or from the news media. n this case, the relator/plaintiff alleged that U.S. Bank initiated foreclosure proceedings ...
With servicing costs climbing the past five years, the issue of how much to pay residential loan processers is once again rearing its ugly head. And depending on who you talk to, the Treasury Department may take up the issue as well, especially since it controls the senior preferred stock of Fannie Mae and Freddie Mac. One industry advisor involved in the topic, speaking under the condition his name not be used, told...
As policymakers work toward housing finance reform, industry participants are forming plans to ensure that servicing issues are addressed. The Urban Institute’s Housing Finance Policy Center recently launched the Mortgage Servicing Collaborative, which will provide data on servicing issues and analyze possible solutions. “We are...
President Trump last week signed an executive order requiring every agency to establish a regulatory reform task force to eliminate red tape. Under the EO, each task force will evaluate existing regulations and identify candidates for repeal or modification. Also, it will focus on eliminating costly and unnecessary regulations. Further, in order to hold the task forces accountable, the agencies will measure and report progress in achieving the president’s directives, according to the White House. It’s...
The House Financial Services Committee, as part of the congressional budget process, this week voted on its budget views and estimates for fiscal year 2018, with an eye on changing the Dodd-Frank Act, the Consumer Financial Protection Bureau, and Fannie Mae and Freddie Mac. The committee’s report is intended as guidance for the House Budget Committee as it crafts its FY2018 budget legislation but is not binding. In reference to Dodd-Frank, the HFSC Republicans’ budget document stated...
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