The Securities and Exchange Commission’s update to Regulation AB won’t prompt many issuers to change whether they issue deals in the public market or private market, according to industry participants. After the so-called Reg AB2 takes effect, issuers of SEC-registered MBS and ABS will have to disclose more information. The regulation includes an exemption for 144A private placements, which could provide a way for issuers to avoid the SEC’s disclosure requirements. At the recent ABS Vegas conference sponsored by the Structured Finance Industry Group and Information Management Network, many issuers indicated....
Freddie Mac earned just $227 million in the fourth quarter, blaming the 90 percent sequential decline in profits on derivative losses of $3.4 billion. In a briefing with the media, Freddie CEO Don Layton went out of his way to explain that when interest rates eventually rise, the government-sponsored enterprise could benefit greatly. “I wish that accounting was more tied to economics but it’s not,” he said. Layton stressed...
Production of loans with a Department of Veterans Affairs guaranty increased 44 percent in the fourth quarter of 2014 compared to the same period a year ago, thanks to strong refinance activity during the holidays, according to an agency spokesman. John Bell, assistant director for loan policy and valuation with the VA Home Loan Guaranty Service, said VA streamline refinance activity rose 18 percent year over year as more veterans took advantage of lower interest rates and lower downpayment in the fourth quarter. He said the VA is still in the process of collating data, declining to give further details. Nonetheless, VA production in the fourth quarter was fueled...
While mortgage performance continues to improve, servicers have put an increased emphasis on completing foreclosures in recent months, according to industry analysts. Foreclosure starts and bank repossessions have increased after more than a year of monthly declines, according to RealtyTrac. “Foreclosure ‘spring cleaning’ got off to a quick start in January,” said Daren Blomquist, a vice president at RealtyTrac. Servicers typically observe...
A letter addressed to the Consumer Financial Protection Bureau regarding a “definitional error” in the drafting of the qualified mortgage provisions in the Dodd-Frank Act that was supposedly penned by Sen. Tim Johnson, D-SD, has turned out to be a fake. According to an email from Drey Samuelson, who served as the former senator’s chief of staff until his recent retirement, “the letter in question was not authorized nor sent by Sen. Johnson, and he has communicated that fact to director [Richard] Cordray.” A CFPB staffer confirmed...
In another example of tag-team enforcement, the Consumer Financial Protection Bureau last week moved against three small, nonbank mortgage companies over their allegedly deceptive advertising practices that implied some status as an agents of the U.S. government, or that they had the approval or endorsement of the government. The crackdown stemmed from a joint sweep with the Federal Trade Commission of about 800 randomly selected ads across the U.S., and as a result of consumer complaints filed with both agencies. In one of the cases, the CFPB filed...
Warehouse commitments written by commercial banks reached approximately $33 billion at yearend, according to figures compiled by Inside Mortgage Finance – one of the healthiest readings in several quarters and a sign that all is well in the originations market. The only thing bothering most warehouse managers is how long the good times can last. “There is...[Includes one data chart]
Lender-placed insurance continues to simmer amid regulatory scrutiny and ongoing court battles, according to a recent BuckleySandler analysis. While the largest LPI class-action lawsuits have settled, servicers and LPI providers remain entangled in appeals of those settlements and in individual borrower lawsuits, said authors Robyn Quattrone and Stephen LeBlanc, partner and associate, respectively, with the Washington, DC, law firm. In addition, federal ...
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