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...
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...
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...
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.
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.
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.
HUD Delays Implementation of Short-Sale Participation Requirement. The implementation of the PFS Participation Requirement, which is found in Mortgagee Letter 2013-23, Updated Pre-Foreclosure Sale and Deed-in-Lieu-of-Foreclosure Requirements, has been delayed indefinitely. All other provisions included in the mortgagee letter remain in effect. Previous guidance on short-sale participation requirements also remain in effect until further notice. FHA to Consolidate Lender ID Numbers. The FHA will consolidate the lender identification numbers of those participating in both the FHA Title I and Title II programs, provided ...
Wells Fargo claimed partial victory after a Manhattan federal district court judge dismissed certain claims against it in a government lawsuit alleging the bank lied about the quality of defaulted mortgages insured by the FHA. District Court Judge Jesse Furman ruled that legal injury claims based on events that happened prior to June 2009 were time-barred and that the government had waited too long to file a lawsuit. He also threw out claims of negligence and unjust enrichment. On the other hand, Furman let stand claims under the Financial Institutions Reform, Recovery and Enforcement Act of 1989, which the ...
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