Settlement talks between JPMorgan Chase and federal and state negotiators have reportedly focused on a possible $11 billion to resolve a string of investigations into the bank’s mortgage lending and securitization practices. The amount under negotiation has ballooned from JPMorgan’s initial offer of $3 billion to $4 billion, which negotiators rejected. The talks cover federal probes in Philadelphia, Washington and Sacramento. The Department of Justice, Department of Housing and Urban Development and New York Attorney General Eric Schneiderman, who co-chairs a presidential task force investigating bank securitization deals, are involved...
Top officials in the Federal Reserve System were making the rounds of the financial and economic intelligentsia this week, shedding some light on the central bank’s decision to prolong its support of the financial and housing markets through its admittedly “unconventional means” of massive asset purchases, accommodative monetary policy and explicit forward guidance. “Several questions have emerged following the meeting” of the Federal Open Market Committee, said FOMC member William Dudley, president and chief executive officer of the Federal Reserve Bank of New York, during a speech this week in New York City. “Most noteworthy was – given that market expectations were skewed towards anticipating the beginning of a taper at this meeting – why the committee did not begin to reduce the pace of asset purchases.” Although he was not presuming to speak for the committee, Dudley did provide...
The Federal Housing Finance Agency this week issued a final rule requiring annual stress tests for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, as mandated under the Dodd-Frank Act.
Despite recovering house values in most markets, insufficient collateral remained the biggest obstacle for consumers trying to get mortgage financing in 2012, according to a new Inside Mortgage Trends analysis of Home Mortgage Disclosure Act data. In virtually every category of the market, loan applicants were more successful in getting approved for a mortgage last year than they were back in 2011, the HMDA data show. Some 15.5 percent of loan applicants were turned down last year ... [Includes one data chart]
With roughly three months left before the Consumer Financial Protection Bureau’s rules on loan-originator compensation and ability-to-repay standards kick in, mortgage originators are scrambling to find the best way to survive and thrive under the new regime. In recent weeks, some in the mortgage broker community have suggested that operating as a mini-correspondent could help brokers bypass points-and-fees complications with the qualified mortgage definition under the ATR rule ...
Borrowers or loan officers misreporting income on loan applications at the height of the housing boom may have pushed up the default rate of high-income borrowers, according to a new Federal Reserve analysis of Home Mortgage Disclosure Data that was matched with non-HMDA credit data. Researchers Neil Bhutta and Glenn Canner of the Fed’s Division of Research and Statistics found that many borrowers classified as high-income may actually have had lower incomes than what they stated on applications, and ...
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