The integrated disclosure rule from the Consumer Financial Protection Bureau continues to shake up the mortgage industry months before it even takes effect. Particularly unsettled are settlement agents, who hope they continue to stay relevant in the new world of mortgage originations, but fear their role will be diminished if not rendered obsolete. “The lender is ceding less authority to the closing agent but they are still letting them close the transactions with greater supervision,” said one industry insider. “Could that change? There is a fear it might, but that is not how it is now.” Joseph Ventrone, vice president for regulatory and industry relations at the National Association of Realtors, put...
According to an informational circular on Angel Oak Mortgage Solutions, some of the top executives at the firm used to work for Southstar Funding in Sandy Spring, GA.
The U.S. Supreme Court this week heard oral arguments on whether a second-lien lender is secured when a borrower with an underwater first lien declares Chapter 7 bankruptcy. SCOTUS in 1992 ruled that a creditor is protected when a partially underwater mortgage goes into bankruptcy. In most cases, the courts have said second-lien creditors are secured as well, even if there isn’t enough value to pay off the first lien. …
New GSE Reserve Fund Bill. Rep. Marsha Blackburn, R-TN, introduced legislation on March 26 requiring the GSEs to send future profits to a newly established reserve fund administered by the FHFA. The bill is titled ''Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015'' and it would “establish a secondary reserve fund for a housing enterprise under conservatorship to protect taxpayers against loss in the event of a housing downturn, and for other purposes." Jumpstart GSE Reform Amendment. On March 25, Sens. Bob Corker, D-TN, and Mark Warner, D-VA, offered an amendment to the Jumpstart GSE Reform Act that would prohibit...
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