The U.S. Department of Agriculture’s Rural Housing Service is seeking comment on a proposed rule that would enable more lenders to make combination construction-to-permanent single-family loans to borrowers. The new combination construction-to-permanent loan, or “single close loan,” allows approved lenders to close a new construction loan and receive a loan-note guarantee before construction begins. The loan expands low- and moderate-income borrowers’ access to affordable rural housing financing in areas with populations up to 35,000. The loan may be used to construct and purchase single-family homes, including manufactured homes and eligible condominiums. The amount covers purchasing a lot, reasonable construction administrative costs, contingency reserves, inspection fees, builder’s risk insurance, landscaping costs, and other authorized items, the ...
A final rule from the Federal Reserve regarding single-counterparty credit limits looks a lot better to the securitization industry than the proposed rule. Industry participants had warned that the rule proposed in March 2016 was overly broad, complex and unworkable.
The Royal Bank of Scotland last week announced a multi-million dollar settlement with the state of Illinois to resolve the bank’s alleged misconduct in its marketing and sale of risky MBS leading up to the 2008 financial crisis.
Originations of higher-priced conventional mortgages increased by 20.1 percent on an annual basis to $36.01 billion in 2017, according to a new ranking and analysis by Inside Nonconforming Markets of data from the Home Mortgage Disclosure Act. Higher-priced mortgages are loans that have an annual percentage rate higher than a threshold for the “average prime offer rate” on a comparable mortgage. First-lien mortgages with an APR ... [Includes two data charts]
In a recent comment letter submitted to the Consumer Financial Protection Bureau, the Mortgage Bankers Association argued for changes to regulations in an effort to boost originations of non-agency mortgages. The trade group cited problems with Appendix Q of the ability-to-repay rule and called for the government-sponsored enterprise “patch” for qualified mortgages to be extended to jumbo mortgages. Appendix Q sets QM standards for non-agency mortgages that aren’t eligible for sale to the GSEs or government-insured
A provision involving community banks and qualified mortgages in recently enacted regulatory relief legislation could prompt community banks and nonbanks to loosen underwriting standards for non-agency mortgages, according to Moody’s Investors Service. Banks with less than $10.0 billion in assets can receive QM treatment for certain loans that would otherwise be non-QMs if the banks hold the mortgages in portfolio acording to the Economic Growth, Regulatory Relief and ...
Borrower complaints about nontraditional mortgage products from nonbanks in California decreased in 2017, according to the state’s Department of Business Oversight. The California DBO said nonbank lenders and servicers received 12,963 complaints about nontraditional mortgages, down 11.1 percent from 2016. However, officials at the DBO cautioned against making comparisons between data for 2016 and 2017 because the number of ... [Includes two briefs]
Some courts have determined that because non-judicial foreclosures don’t technically obligate borrowers “to pay money,” protections from the FDCPA aren’t available.
RSS