Michael Fratantoni, chief economist at the Mortgage Bankers Association, said the GSEs’ back-end risk-sharing deals do not represent the type of reform most industry participants would like to see.
The fear for MI firms, and the analysts who cover them, is that another cut in the MIP would eat into policies that might be written by the private mortgage insurance sector.
Some observers believe the CFPB is questioning whether certain LOS vendors are qualified to serve the industry, fearing a potential crackdown on such companies.
One of Fannie’s and Freddie’s reputed “sins” was donating large sums of money to politicians who, in turn, ran interference for them on Capitol Hill...
Consumer complaints to the CFPB about mortgages filed during the third quarter fell in most of the significant categories tracked by Inside the CFPB – with issues about the application and origination process being the one notable exception. Gripes in this regard rose 4.1 percent from the second quarter to the third, and increased a larger 12.6 percent at the nine-month mark versus a year ago, our latest analysis found. But at just 1,644 complaints, the number of homebuyer criticisms in this regard pales when compared to the huge number of mortgage applications and originations made during the same period. It is also important to note the seasonality associated with complaints in this area, as they tend to be highest during ...
Earlier this month, the House of Representatives voted 303-121 in favor of H.R. 3192, The Homebuyers Assistance Act. The legislation would provide the mortgage industry with a regulatory and legal safe harbor until Feb. 1, 2016, for mortgages originated in good faith under the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, otherwise known as TRID. The rule, designed to streamline the mortgage disclosures under the two laws, took effect Oct. 3, 2015, after nearly two years of notice from the CFPB. “The CFPB and House Republicans agree that a transitional period for TRID compliance which enables lenders to test their systems and ensures there is no large-scale disruption to mortgage lending is necessary,” said Rep. ...
The CFPB is considering banning lenders from using what it characterized as “free pass” arbitration clauses that prevent consumers from participating in class-action lawsuits. “Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” said CFPB Director Richard Cordray. “Companies are using the arbitration clause as a free pass to sidestep the courts and avoid accountability for wrongdoing. The proposals under consideration would ban arbitration clauses that block group lawsuits so that consumers can take companies to court to seek the relief they deserve.” The proposals the bureau is considering include giving consumers “their day in court” and incentivizing companies to comply with the law to avoid lawsuits. The bureau ...
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