Last week, the Securities and Exchange Commission provided new guidance, in a question and answer format, about certain programming changes to its online disclosure system that have been made to support recently adopted revisions to Regulation AB and new Exchange Act Rule 15Ga-2. More specifically, the guidance covers the procedures that a filer must use in the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system that enable it to file a preliminary prospectus and to furnish Form ABS-15G, along with accompanying tables and third party due-diligence reports. It also addresses...
Ellington Financial is increasing its investments in non-qualified mortgages as officials at the nonbank expect strong profits from the loans. Ellington held $9.2 million in non-QMs at the end of 2015, up from $3.5 million at the end of the third quarter. The nonbank started financing purchases of non-QMs under a facility with an unidentified “large investment bank” in January. “While it took a little longer than I had hoped to get here, the non-QM pipeline will have a meaningful ...
Determining a borrower’s ability to repay a bank-statement mortgage is more complicated than evaluating a borrower underwritten with full income documentation, according to a recent report by Moody’s Investors Service. The rating service noted that originations of bank-statement loans tend to be non-qualified mortgages for self-employed borrowers. “The quality of loans originated through bank-statement income documentation programs depends heavily on ...
Major servicers participating in the non-agency portion of the Home Affordable Modification Program have improperly ended mods for a number of borrowers, according to data from the Treasury Department. The Special Inspector General for the Troubled Asset Relief Program is urging the Treasury to take actions to prevent servicers from terminating mods that meet HAMP guidelines. “Treasury’s findings in its on-site visits to the largest seven mortgage servicers in HAMP over ...
One of those GSE watchers is Bose George of Keefe, Bruyette & Woods, who told us: “I see no reason for the administration to negotiate in any meaningful way with the plaintiffs..."
An appeals court in Massachusetts recently ruled in favor of a borrower in a case involving the determination of the borrower’s ability to repay a balloon mortgage, setting a concerning precedent, according to industry lawyers. Moronta v. Nationstar Mortgage involves a refinance originated by Fremont Investment & Loan in January 2007 for a borrower in Quincy, MA. The refi included a first-lien 3/1 adjustable-rate mortgage that amortized over 50 years with a ...
The Consumer Financial Protection Bureau last week published its policy for issuing no-action letters for certain innovative financial products. Lenders had called for the policy but industry analysts caution that no-action letters from the CFPB won’t necessarily be helpful. Under the policy, lenders can apply for a no-action letter from the CFPB. The regulator said it will review applications for such letters and in certain circumstances indicate that ... [Includes three briefs]
Carol Galante, former head of the FHA, has been named to Ocwen Financial’s board of directors. Galante left the FHA in August 2014 to take on the position of faculty director with the Terner Center for Housing Innovation at the University of California, Berkeley. Current director Phyllis Caldwell was elevated...
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