“Eminent domain may be a local matter, but in the context of seizing mortgages, its use would have national consequences,” the four senators write in their letter to Treasury Secretary Jack Lew.
The GSEs are beginning to take in a significant amount of money from R&W settlements, but both stand to reap an even larger windfall from a pending civil lawsuit filed by the FHFA against 17 issuers of private label MBS.
Meanwhile, the regulator Monday morning unveiled new “master policy” requirements for the MI industry, which will make it harder for insurance firms to get out paying claims on defaulted mortgages.
Standard & Poor’s recently published an updated estimate of likely losses stemming from mortgage-related litigation, finding that banks face future costs of $56.5 billion to $104 billion.
The CFPB has gone ahead and issued the last big piece to the mortgage finance puzzle it was mandated to manufacture by the Dodd-Frank Act, the integrated mortgage-disclosure rule under the Real Estate Settlement Procedures Act and the Truth in Lending Act and related forms. The good news for the mortgage finance industry – apart from the 20-month implementation period – is that the new rule and forms, part of the bureau’s “know before you owe” initiative, are not nearly as “transformational” towards the fundamental nature of the...
The scope of the ability-to-repay/qualified mortgage final rule released earlier this year by the CFPB will make it more difficult for borrowers to obtain loans and tighten already-strict underwriting standards, according to analysts at Standard & Poor’s Ratings Services. “We anticipate that the rule will prevent many of the types of loosely underwritten mortgages that caused systemic risk during the 2006 and 2007 origination period, but may do so at the expense of limiting credit access – sometimes to qualified borrowers,” they...
A handful of leading industry trade groups told the CFPB they generally support the agency’s recent interim final rule that clarifies the proper compliance with mortgage servicing requirements when a consumer is in bankruptcy or sends a cease communication request under the Fair Debt Collection Practices Act. The interim final rule, issued Oct. 23, 2013, amends some of the mortgage servicing-related provisions in Regulation X (the Real Estate Settlement Procedures Act) and Regulation Z (the Truth In Lending...
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