Moves by three issuers of prime non-agency mortgage-backed securities to allow for third-party due diligence reviews to be completed on fewer than 100 percent of the loans in an MBS could increase the risk of losses for MBS investors, according to Moody’s Investors Service. In a report released this week, Moody’s said narrower due diligence reviews increase the likelihood of defective loans appearing in non-agency MBS. The rating service added that representations ... [Includes five briefs]
According to the newspaper, Watt – a former Democratic Congressman from North Carolina – is under investigation for alleged sexual harassment of an employee.
After months of gathering and reviewing comments on credit-scoring options, the Federal Housing Finance Agency abruptly called off its plan to announce new guidelines for Fannie Mae and Freddie Mac by the end of this year. The two major credit-score providers aren’t happy with the news.
The Mortgage Bankers Association has met with state regulators in an effort to speed implementation of transitional licenses for loan originators who move from banks to nonbanks or to a new state.
The Consumer Financial Protection Bureau recently announced plans to create a “regulatory sandbox” to encourage consumer-friendly innovation in financial services. The mortgage industry sees it as an opportunity to enhance the emerging niche of loans that fall outside the qualified mortgage standard.
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