Attorney Barbara Mishkin notes: “…the amicus brief to be filed by the U.S. can be expected to support PHH’s position that the CFPB’s single-director-removable-only-for-cause structure is unconstitutional.”
Cowen notes: “…this latest flare up reinforces our view that Treasury is unlikely in 2017 to unilaterally change the profit sweep at Fannie and Freddie…”
As Democrats in Congress worked on reforms after the financial crisis, issuers of MBS and ABS repeatedly warned that regulatory uncertainty would hurt the market. With Republicans now looking to roll back parts of the Dodd-Frank Act, industry participants are pushing for risk-retention requirements to remain in place, again citing the potential impact of regulatory uncertainty. “It’s foolish to think that we would try to tear it all down,” said Howard Kaplan, a partner at the law firm of Deloitte & Touche, during this week’s SFIG Vegas conference. Among many other changes, the CHOICE Act from Rep. Jeb Hensarling, R-TX, would repeal...
CFPB analyst Megan Thibos reminds consumers that, “During the foreclosure crisis, many borrowers with subprime mortgages faced sharply increased mortgage payments and were unable to make those payments.”
Late last month, Fairholme Capital chief Bruce Berkowitz sent out a press release reassuring his shareholders that the hedge fund’s bet on owning the junior preferred stock of Fannie Mae and Freddie Mac will prevail, eventually. Among other things, the veteran equity-fund manager extolled the government-sponsored enterprises’ massive fourth quarter profits of almost $10 billion, called them “indispensable” to the mortgage insurance industry and reminded readers they continue to fulfill “their historic role of insuring adequate levels of liquidity to lenders of all sizes.” He also mentioned...
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