Given the complexity of the 3 percent points-and-fees cap for qualified mortgages under the ability-to-repay rule and the imperative of getting it right, mortgage lenders could still find themselves outside the compliance box if they ignore the fair lending implications of their business practices. “Fair lending is definitely something we have to take into consideration in every decision we make and every rule we come across,” said Ginger Moore, the compliance officer at PrimeLending, during a webinar last week sponsored by Inside Mortgage Finance. One example is...
Fannie Mae, Freddie Mac and mortgage-backed securities trustees representing investors in non-agency MBS sued the city of Richmond, CA, this week to stop it from further implementing a plan to use eminent domain authority to seize and purchase performing underwater mortgages. Wells Fargo and Deutsche Bank, acting as trustees for a group of investors that includes BlackRock, Inc., Pacific Investment Management and the government-sponsored enterprises, filed the lawsuit in federal court in San Francisco at the behest of certificate holders. The plaintiffs are asking the court to declare the “Richmond Seizure Program” unconstitutional and in violation of California laws, and to order city officials to end the program. Securitizers and investors are...
The SEC said the deal has taken nearly $70 million in losses – the greatest loss rate of any comparable securitization from Bank of America. An additional $50 million in losses are expected.
The White House believes that the current housing finance system, where the government guarantees more than 80 percent of all mortgages through Fannie Mae, Freddie Mac and FHA, is unsustainable.
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