Servicers appear to have won a battle with consumer advocates regarding state adoption of servicing requirements that exceed those established by the Consumer Financial Protection Bureau. The Council of State Governments this weekend decided against recommending California’s “Homeowner’s Bill of Rights” as model legislation for states, according to a spokesman for the CSG. The Mortgage Bankers Association had warned that piecemeal adoption of California’s bill would increase costs and create confusion. California’s Homeowner’s Bill of Rights included...
Some non-agency participants have called for an immediate return to conforming loan limits of $417,000, which were in place in 2008 before Congress established “emergency” loan limits for high-cost areas.
The new Bachus bill could be a sign that House Republicans are making a fresh push to force a compromise with the Obama administration over the structure of the CFPB.
“Confusion and uncertainty around representations and warranties standards continue to cause lenders to add their own overlays to the existing GSE credit standards,” said MBA vice chairman Bill Cosgrove.
One of the best kept secrets in the servicing sector is a “bifurcated” mortgage program initiated by Fannie Mae that has been gathering momentum over the past six months.
Freddie filed repurchase requests on some $361.6 million of 2012 originations during the first quarter of this year, according to figures compiled by Inside Mortgage Trends.
It appears that looser underwriting has been driven by an increase in the number of lenders participating in the HARP program and copy-cat efforts that allow for LTVs of greater than 95 percent.
A mortgage employee who who merely states general information such as “we offer rates as low as 3% to qualified consumers” would not be considered a loan originator.
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