What if the U.S. government actually defaults on its debt – what would that do to the value of MBS and Treasuries held on the balance sheet of banks? You may not want to know the answer.
Laurel Davis, a vice president at Fannie Mae, said the GSE learned from Freddie’s transaction and the pending risk-sharing deal from Fannie is set to receive an investment grade rating from Fitch Ratings.
In light of the court decision in the overtime pay case, the government must either appeal to the U.S. Supreme Court or start a formal rulemaking process to withdraw the 2006 opinion.
Industry advisors and lobbyists hope they can move the implementation date for lower GSE loan limits deep into the second quarter, but they also realize they cannot forestall it completely.
Some lenders have vowed to close loans without IRS verifications, filling the void by asking for additional and in-depth documentation – but only on retail-sources mortgages.
As the partial shutdown of the U.S. government enters its second week on Oct. 7, the CFPB remains fully staffed, funded and operational, so any financial services providers that assumed they might get a bit of a regulatory, compliance or enforcement reprieve would be well advised to press on full-steam ahead. All of the key federal financial regulators – the bureau, the Federal Reserve, the Federal Housing Finance Agency, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency – remain open as usual...
The CFPB recently revised its final servicing and mortgage origination regulations, and while its changes were welcome, a significant number of issues remain unresolved, an industry group told the bureau late last week. Further, without additional clarification and definition, the group said the mortgage industry will probably impose additional safeguards that will cause even more credit tightening beyond the already tight standards limiting many prospective borrowers. “The final regulations still do not provide...
The assignee liability inherent in the Dodd-Frank Act and the CFPB’s ability-to-repay rule will keep institutional investors away from the non-agency mortgage-backed securities market, resulting in less credit availability for mortgages that fall outside the ATR’s qualified mortgage standard, John Gidman, president of the Association of Institutional Investors, told the Senate Banking, Housing and Urban Affairs Committee last week. The Dodd-Frank Act and the CFPB’s subsequent regulations create a path for a defaulting...
Last week, the Department of Housing and Urban Development came out with its own version of a “qualified mortgage” rule for FHA-backed mortgages based largely on the QM standard incorporated in the CFPB’s ability-to-repay rule early this year. Following the CFPB’s QM definition, HUD’s proposed rule defines both a safe-harbor QM and a rebuttable-presumption QM. HUD’s QM definition also incorporates the points-and-fees limitation scale from the CFPB’s final rule. “The significant departure from the CFPB’s definition is the way in...
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