The CFPB’s internal control over financial reporting was not effective as of September 30, 2014, because of a material weakness related to the reporting of accounts payable, according to a new study by the U.S. Government Accountability Office. The material weakness is a result of serious control deficiencies that affected CFPB’s determination and reporting of accounts payable. “Specifically, GAO found that CFPB did not have effective procedures in place to determine and record an appropriate amount for goods and services received but not yet paid for as of Sept. 30, 2014,” said the congressional watchdog agency.Additionally, CFPB did not have effective review procedures to timely detect and correct inaccuracies in the accrual amounts. “Despite the material weakness, CFPB made ...
The CFPB’s Office of Inspector General found the bureau’s information security program was generally in compliance with the Federal Information Security Management Act, but that further improvements are needed in security training and contingency planning. Nine other areas that received a passing grade from the OIG were information security continuous monitoring (ISCM), configuration management, identity and access management, incident response and reporting, risk management, plan of action and milestones, remote access, contractor systems, and security capital planning. “While we found that the CFPB’s information security program was generally consistent with the requirements for ISCM, configuration management, and incident response, we identified opportunities to strengthen these areas through automation and centralization,” the report stated. This year, the OIG found that the ...
CFPB eClosing Program Will be a Plus, Eventually. The eClosing initiative launched earlier this year by the CFPB will ultimately be beneficial to the mortgage industry, once all the big wrinkles are ironed out, according to analysts at DBRS, formerly Dominion Bond Rating Service. “Many of the elements that make up eClosings are already being used in other consumer and commercial loans (such as auto loans and equipment lending), so much of the process should be easy to replicate,” the analysts said in a client note last week. “However, it is the uniqueness of the mortgage industry that will present some challenges.” For instance, there are real estate statutes for real property, compared with the Uniform Commercial Code for personal ...
Two years ago, Ross’ WL Ross & Co. sold its mortgage banking operation, Homeward Residential, to Ocwen for $750 million in cash and convertible preferred stock.
Other changes include: providing flexibility for servicers to comply with certain force-placed insurance and periodic statement disclosure requirements.
Regarding Nationstar’s financial condition, Fitch previously referenced the financial condition of Fortress Investment Group, which owns 74 percent of the nonbank lender/servicer.
Banks and thrifts held a combined $1.535 trillion of residential MBS at the end of September, a modest 0.6 percent increase from the previous quarter, according to a new Inside MBS & ABS analysis of bank call reports. Bank MBS holdings had spiked higher in the first quarter of this year, only to fall back in the following period. Compared to a year ago, the industry’s aggregate MBS portfolio was up 1.4 percent. Bank and thrift MBS holdings first crossed...[Includes two data charts]
Top mortgage finance professionals and government officials gathered in New York City last week to discuss the prospects for the non-agency MBS market, and their assessments were all over the board, a sign of the uncertainty many participants have about trying to resuscitate a stagnant sector. “It’s been seven years since the financial crisis, and certainly a lot of things have changed,” said Rui Pereira, managing director at Fitch Ratings, during a panel at the non-agency MBS reform symposium sponsored by the Structured Finance Industry Group and Information Management Network. He then cited...
The head of the Federal Housing Finance Agency told Senate Banking, Housing and Urban Affairs Committee members this week that a decision on Fannie Mae and Freddie Mac guaranty fees will come soon after the New Year. In his first oversight hearing since taking the reins of the agency in January, FHFA Director Mel Watt stated during questioning that the regulator of the government-sponsored enterprises will make its move on g-fees during the first quarter of 2015. In one of his first acts as FHFA director, Watt postponed...
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