It shouldn’t be a surprise if mortgage lenders are suffering from loan originator compensation regulation fatigue. “The industry has been in a constant state of implementation regarding LO comp and LO qualification since 2009,” said Amy Thoreson Long, senior counsel in the consumer lending division of Wells Fargo’s law department, during a webinar hosted yesterday by Inside Mortgage Finance, an affiliated newsletter. The bad news is, things will get much worse in that regard before they get better, thanks to ...

The Federal Housing Finance Agency hasn't totally given up on the issue of "fee for service."

Wells Fargo last year wound up keeping almost $20 billion of new residential production its books instead of selling the loans to Fannie Mare and Freddie Mac.

FHA staff could be furloughed if the federal sequester happens Thursday night.

A new mortgage reform proposal drafted by a blue-ribbon panel gives a fairly prominent role to private credit enhancement as a key feature in a new mortgage securitization system. While the plan released this week by the Bipartisan Policy Center’s Housing Commission – like all others that came before it – calls for a smaller government role in the mortgage sector, it remains to be seen whether it will get the reform process off the ground in a stalled political environment. The commission, comprised of former lawmakers and cabinet officials, both Republican and Democrat, calls for phasing out the government-sponsored enterprises in favor of a new federal entity that explicitly acts as a backstop of last resort after the private sector. It would replace Fannie Mae and Freddie Mac over a five- to 10-year period with a new “Public Guarantor,” a wholly government entity that would provide an explicit, but limited guaranty on mortgage-backed securities. “The government would cover...

Wells Fargo has not given up on mortgage lending JVs after all and has hired someone to manage them.

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...