Even though indications of stress in the U.S. auto market are proliferating, risks in the auto loan ABS sector are still under control and investors are protected by healthy levels of credit enhancement, according to industry analysts. “Despite late-cycle indicators continuing to garner headlines – softer used-car pricing, rising inventories, weakening headline seasonally adjusted annual sales, and rising loan losses – we remain comfortable with auto loan ABS fundamentals,” according to a new report from Kroll Bond Rating Agency. KBRA did concede...
For a firm that’s only been involved in the mortgage industry for a year, Eli Global has already bought a stake in two lending companies, inched its way into the warehouse lending arena – and become a plaintiff in a messy lawsuit that accuses a veteran mortgage banker of fraud. So far – except for the lawsuit filed by Eli Global affiliate CapLoc – the Durham, NC-based financial services company has kept a low profile while turning down repeated requests for interviews ...
Senate Democrats opposing the administration’s proposed cuts to HUD’s FY 2018 spending bill have reportedly placed a hold on Pantenaude’s nomination...
Federal banking regulators announced this week that capital requirements set to take effect in January for all but the biggest banks would be suspended under a proposed rule. The proposal applies to Basel III capital requirements for mortgage servicing rights, among other items. The regulators said they are developing a proposal that would simplify capital rules to reduce regulatory burden, particularly for community banks. The proposed suspension generally applies to banks with less than $250 billion in total assets. Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., said...
The Consumer Financial Protection Bureau has begun receiving public comments in response to its proposal to close the so-called black hole in its integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Interviews this week found that top experts dealing with the issue are pleased the bureau is addressing the problem, which is among the most significant issues related to the new disclosure regime. “Although the ‘black hole’ is highly technical, the impacts on lenders are significant,” noted former CFPB official Benjamin Olson, now a partner with the BuckleySandler law firm in Washington, DC. He noted...
The Federal Financial Institutions Examination Council this week issued new examiner transaction testing guidelines for all financial institutions that report under the Home Mortgage Disclosure Act. The rules will apply to the examination of HMDA data collected starting in 2018 and reported starting in 2019. The guidelines eliminate...
The Office of the Comptroller of the Currency this week issued guidance to banks regarding originations of loans with loan-to-value ratios of 100 percent or more in distressed communities marked for revitalization. The guidance is in support of banks’ attempt to revive neighborhoods that have suffered an economic downturn through programs that offer high-LTV financing for home purchases or for purchases and rehabilitation of residential properties. Specifically, the guidance provides...
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