“The bureau welcomes and encourages suggestions of cases as candidates for amicus curiae participation,” said the letter, signed by Meredith Fuchs, general counsel of the CFPB.
Although Ocwen Financial is in regulatory hot water with California – a dicey proposition given the state’s importance to the mortgage industry – the nation’s fourth-largest servicer will continue with a strategy of non-agency MBS clean-up calls and Ginnie Mae buyouts. At least, that’s what company Executive Vice President and Chief Investment Officer John Britti told Inside MBS & ABS late this week. Britti confirmed continuance of the strategy, but declined to offer any new details or color. The big question, of course, is...
Risk weights established by the Basel Committee on Banking Supervision for holdings of securitized assets won’t have much of an impact on U.S. banks, according to analysts at Barclays Capital. It’s unclear which banks the risk weights will be applied to and many U.S. banks have transitioned to similar methods to evaluate capital requirements for their holdings of MBS and ABS. The BCBS issued a revised framework for calculating risk weights on banks’ securitization exposures in December. The framework is set to take effect in certain countries beginning in 2018. It was issued to address concerns that banks were holding insufficient capital for certain securitized assets and to reduce the reliance on external ratings to derive securitization risk weights. Barclays said...
The U.S. Supreme Court this week denied a petition by major banks to reject a lower court decision to allow a National Credit Union Administration MBS lawsuit to go forward. The SCOTUS chose not to hear the case, a lawsuit filed by the NCUA to recover damages suffered by five now-defunct federal credit unions as a result of investments in non-agency MBS sold by the banks. The suit is...
The Federal Housing Finance Agency will unveil nonbank capital guidelines for servicers by mid-year. Also on the docket: Changes to loan level price adjustments..
Home purchase borrowers, including first-time homebuyers, rely more on their lender or mortgage broker than anyone else as a source of information about mortgages, according to a new government survey on consumers’ mortgage shopping experience. Conducted by the Consumer Financial Protection Bureau, the survey found that an estimated 70 percent of home-purchase borrowers chose their lender or broker before deciding on the type of loan ...
Almost half of the people buying a home these days do not shop around for their mortgages, according to a report issued this week by the Consumer Financial Protection Bureau. So to help remedy that, the bureau rolled out an online rate-checker tool – something that immediately set off a firestorm of opposition from mortgage brokers and originators. Rate Checker, part of a broader CFPB initiative called Owning a Home, is intended to help consumers understand what interest rates may be available to them, said CFPB Director Richard Cordray. “It incorporates information from lenders’ internal rate sheets, information they use to calculate what interest rate is available for a particular consumer. In other words, we are giving consumers direct access to the same type of information that the lenders themselves have. “By plugging in their credit score, their location and information about the loan they are seeking, they can see...
Ocwen’s plan to sell roughly $182 billion of agency servicing rights may have gone up in smoke this week after it was revealed that the California Department of Business Oversight could pull its mortgage licenses in the state. One servicing advisor, requesting anonymity, said the nonbank’s latest run-in with regulators “effectively put an illiquid label on all of their servicing rights.” Another advisor suggested...
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