Financial services trade groups called upon federal banking regulators to reinstate the 100 percent risk-weighting for mortgage servicing rights and to implement other changes as they move forward with the new Basel III risk-based capital rules. In a recent joint letter to bank regulatory agencies, the Mortgage Bankers Association, the American Bankers Association and the Independent Community Bankers of America warned that inaction could seriously affect the availability and cost of mortgages to consumers. The trade groups believe...
The Uniform Law Commission’s latest proposal for a model state act that would regulate foreclosure practices as part of an overlay on current state laws is deeply flawed, according to large servicers represented by the Consumer Mortgage Coalition. In a comment letter submitted to the ULC’s Home Foreclosure Procedures Act Committee last week, Anne Canfield, executive director of the CMC, said the draft HFPA could prompt foreclosure delays and would create new assignee liability. The ULC’s committee on the proposed foreclosure law has been working...
Mortgage servicing compliance is about to get even more complicated as the Consumer Financial Protection Bureau late last week proposed changes to its mortgage-servicing regulations on loss mitigation, force-placed insurance disclosures, borrowers in bankruptcy and a host of other matters. On loss mitigation, the bureau is proposing that servicers would have to meet its requirements “more than once in the life of a loan” for borrowers who become current after a delinquency. However, the rule is not clear how many times this could occur over the life of the mortgage. Next, the bureau wants...
Nonbank mortgage servicers are bracing for an onslaught of new capital recommendations from the Conference of State Bank Supervisors, which could see the light of day in early 2015. But the industry did receive one piece of good news: although the CSBS is working on what it calls “options for prudential standards,” the organization will not be addressing capital for nonbank originators, a CSBS official told Inside Mortgage Finance. The group is...
Prior to FHFA’s new directive, Fannie and Freddie required homeowners who have been through foreclosure and want to buy their home back to pay the entire amount owed on the mortgage.
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 ...
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 ...
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