A year ago, Wells Fargo had a stake in roughly 100 joint venture mortgage banking companies, mostly with real estate brokers. Today that number stands at 10 or so with some of the remaining JVs voicing concerns that the nation’s largest lender might pull the plug by the time 2013 ends. However, at least two Wells JVs – HomeServices Lending and Prosperity Mortgage – have been reassured by the bank that their relationships are on firm footing and they have nothing to worry about. Still, there is a growing concern among some JV partners that, in the words of one executive: “Wells is allocating resources away from JVs.” This source, who spoke under the condition his name and company not be published, said...
Mortgage industry representatives strongly support efforts by the Consumer Financial Protection Bureau to lessen the potential for double counting in loan originator compensation calculations for “qualified mortgages” under the CFPB’s recently issued ability-to-repay final rule. And they’d like the bureau to go even further. When the CFPB issued its ATR rule last month, it also proposed adding two comments and potentially one of two others to the accompanying commentary that would specify calculation methods to lessen the problem of double counting of loan originator compensation in the points and fees calculation for QM loans. The first comment, “exemption for consumer paid mortgage broker/brokerage compensation,” would clarify...
The five servicers participating in the $25 billion national mortgage servicing settlement could complete their borrower relief obligations well before the 2015 deadline, according to a report released late last week by the settlement’s monitor. However, complaints from borrowers regarding servicing are increasing, with greater scrutiny expected from the Consumer Financial Protection Bureau and the possibility of further requirements as part of the settlement. The five servicers participating in the settlement have $20.0 billion in consumer relief requirements and provided $45.8 billion in gross relief to borrowers through the end of 2012 as part of the settlement. However, most of the servicers have not yet met their relief requirements as the loss mitigation must be provided via a number of different tactics credited at varying levels. Short sales accounted...
With the Federal Reserve’s MBS portfolio quietly passing the $1 trillion mark in mid-February for the first time since late 2010, Fed Chairman Ben Bernanke this week continued to toe the party line on the historic level of support the central bank has provided to the MBS and Treasury markets. But there is more skepticism from Republicans on Capitol Hill and some Fed board members, and industry analysts are trying to dope out when the Fed buying spree will wind down. “After quadrupling its balance sheet engaging in unprecedented MBS asset purchases and creating an extended negative real interest rate environment, there is...
Sallie Mae is set to issue the first ABS of the year backed by private student loans, a market that is expected to reach 2012 levels although student loans are drawing more scrutiny from the Consumer Financial Protection Bureau. Sallie’s SLM Private Education Loan Trust 2013-A will have an initial pool balance of $1.31 billion and it’s expected to receive a AAA rating, based on a presale report from Standard & Poor’s. Some $27.1 billion in federally-backed and private student loan ABS was issued...
Adherents of a global tax proposal that would help countries raise revenue and make the financial sector pay for its fair share of crisis costs are calling on the U.S. for support. But first, the U.S. must overcome its fear of the “financial transaction tax,” or FTT, before this controversial tax option can be adopted globally, according to panelists in a forum hosted this week by the Center for American Progress. The CAP believes the tax is a “smart policy tool” that is both a revenue raiser and a stabilizer of volatile financial markets. The FTT is...
The Federal Reserve is open to the idea of making the "qualified residential mortgage" definition in the pending risk-retention rule the same as that of the "qualified mortgage" standard.
The mortgage industry wants the Consumer Financial Protection Bureau to clarify whether mortgages subject to repurchase demands will lose their “qualified mortgage” status under the bureau’s new ability-to-repay rule.
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