Consumer complaints about their mortgages fell from the second-most complained about financial product or service in March, after debt collection, to third place in the CFPB’s monthly ranking for April. Credit reporting moved up into the second slot. The latest data show 7,300 consumer gripes to the CFPB last month, based on the bureau’s three-month rolling average. That was down 9 percent since the prior month. There were 4,587 consumer criticisms related to credit reporting in April, off 6 percent from March’s level.And mortgage-related kvetching dropped 12 percent, down to 4,347 notices. These three products accounted for about 68 percent of the 23,870 complaints submitted in April of this year. Elsewhere in the data mix, complaints about payday lending ...
The CFPB deserves a lot of credit for successfully taking on so many challenges simultaneously when it was created by the Dodd-Frank Act, a former bureau official said. Yet, numerous challenges continue to confront the bureau. “I think, from an accomplishment perspective, it’s been amazing for the bureau to be able to establish the infrastructure for a brand new federal agency at the same time that it’s been very active in evolving new rules and also pursuing supervision and enforcement and consumer response activities,” said Quyen Truong. She is a former assistant director and deputy general counsel of the CFPB from 2012-2016 (right after the Elizabeth Warren era), having joined Stroock & Stroock & Lavan LLP as a partner in ...
More Gripes About TRID Dribble In. After what seemed like a lull in hearing complaints from lenders regarding the integrated disclosure rule known as TRID, the gripes are picking up again. At least that’s what we detected from some originators a few days ago. One loan broker who works the southern California market said she’s been telling some clients that it will take an extra seven days to close. “It was 15 before wholesale caught up, but now they’re behind again due to heavy sales volume.” Broker Slams Bureau’s Complaint Database. While he was running for a House seat in West Virginia, mortgage trade group president Marc Savitt was mostly quiet on issues tied to the CFPB. But now that ...
Although statistics are hard to come by, Mid America believes it is one of the most active buyers of such mortgages, most of which are nonconforming jumbos.
Issuers of non-agency MBS willing to issue publicly-registered securities can look forward to thorough reviews by the Securities and Exchange Commission. Redwood Trust filed an updated shelf registration with the SEC this month and the SEC released some of the feedback that went into crafting the issuer’s new Form SF-3. Issuance of publicly-registered non-agency MBS has been minimal since the financial crisis, with issuers seeing pricing in the private 144A market as adequate. Public transactions are subject to more extensive disclosure standards than private deals. An initial letter from the SEC dated Oct. 29, 2014, noted...
The Federal Reserve Bank of New York’s Open Market Trading Desk this week conducted the first of two small-value agency MBS sales operations, “for the purpose of testing operational readiness.” The second test is slated for June 1, 2016. The total current face value of sales across the two operations will be less than $150 million, according to the bank. The first transaction, which involved four Fannie Mae MBS currently valued at approximately $120 million, occurred in the middle of this week. The settlement date is June 13, 2016. Meanwhile, the June 1 operation will involve...
The share of new home mortgage originations packaged into MBS drifted slightly lower in the first quarter of 2016, a new Inside MBS & ABS analysis reveals. Some $255.7 billion of newly originated mortgages were pooled in MBS in the first three months of the year, representing a paltry 67.3 percent of the estimated $380 billion of first-lien originations in the primary market. For the purposes of calculating securitization rates, loans aged more than three months and modified loans are excluded from agency MBS issuance figures. Fannie Mae and Freddie Mac securitized...[Includes one data table]
It was thought that with the Consumer Financial Protection Bureau working on a new regulation to clarify key portions of the TRID integrated-disclosure rule and assignee liability that the scratch-and-dent market in TRID-defective loans would grind to a halt. But that’s not how it’s turned out. According to investors in “S&D” TRID mortgages and traders who play in the space, auctions of mortgages with errors (of all sorts) have continued...
Investors who are suing the government over the terms of the conservatorships of Fannie Mae and Freddie Mac said the 53 documents recently made public solidify their claim that the government-sponsored enterprises had plenty of capital and a government bailout was unnecessary. The Treasury Department provided the documents to plaintiffs last week as part of a court case in Kentucky. “The newly de-designated documents also suggest...
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