In another bid to help mortgage bankers better assess their compliance capabilities, the CFPB has updated its mortgage rules readiness guide to include the Truth in Lending Act and Real Estate Settlement Procedures Act integrated mortgage disclosures, otherwise known as “TRID.” Version 3.0 of the guide, dated September 2014, summarizes the mortgage rules finalized by the CFPB as of Aug. 1, 2014, but it is not a substitute for the rules. “Only the rules and their official interpretations can provide complete and definitive information regarding their requirements,” the bureau reminds. Each rule description includes a hyperlink with additional information, including Small Entity Compliance Guides, which may make the rule easier to digest. The guide consists of four parts: a summary of the rules ...
Bureau Updates Its Reverse Mortgages Guide With Words of Caution. The CFPB has updated its reverse mortgage guide to reflect some recent, potentially important changes to such loan products. The bureau is urging caution, noting such mortgages can be risky and expensive. “It’s a complicated type of loan that works best for homeowners who carefully consider all of their options,” the agency said. One of the highlighted changes limits the amount of money a homeowner can draw from the loan in the first year. “Borrowers often get into trouble by taking a lump-sum payment early on,” said the CFPB. “It may feel great to get a big payment up front, but borrowers can outlive this money – which spells financial trouble for borrowers who live longer lives.” ...
The Securities and Exchange Commission’s release of a final rule setting loan-level disclosure requirements for certain structured finance products has only slightly reduced the uncertainty regarding the impact of the so-called Reg AB2 requirements. Among other issues, the SEC left parts of its initial proposal from 2010 unfinished, with no indication of if or when further action will be taken. For example, the SEC had originally proposed extending loan-level disclosure requirements to the 144A private-placement market in addition to requiring such disclosures for certain SEC-registered securities, including residential MBS, commercial MBS, ABS backed by auto loans and re-securitizations of such collateral. At the recent ABS East conference produced by Information Management Network in Miami Beach, Rolaine Bancroft, a senior special counsel at the SEC, said...
Here's a fact that most readers may not know: the Housing and Economic Recovery Act of 2008 grants the FHFA the authority to bring Fannie Mae and Freddie Mac out of conservatorship.
A federal judge in New York has cleared the way for investors to proceed with a $10 billion class-action suit against JPMorgan in relation to the 2007 sale of non-agency MBS. Judge Paul Oetken of the U.S. District Court for the Southern District of New York, however, limited the scope of the class-action suit to JPMorgan’s liability but did not certify as to damage. Explaining his decision to narrow the scope of the suit, Oetken said...
Supporters of using eminent domain to resolve underwater but performing non-agency mortgages succeeded in placing their proposal back on the front burner in California this week. On Tuesday, the San Francisco Board of Supervisors unanimously voted to convene in closed session later this month with the city attorney’s office for advice on “anticipated litigation relating to the potential negotiation or adoption of a joint powers agreement with the city of Richmond [CA] to establish a homeownership stabilization authority to assist homeowners with troubled mortgages.” The board opted...
To this point, most products offered outside of standards for qualified mortgages have targeted super-prime borrowers, often with jumbo loan balances. However, competition among lenders in that sector has been strong and there are plenty of borrowers with somewhat less than perfect credit looking for non-QMs, prompting some lenders to work on expanding their non-QM offerings. Brian Simon, COO of New Penn Financial, said the nonbank is launching a non-QM for borrowers who have ...
Only one nonbank claimed more than a 1.0 percent share of originations of non-agency jumbo mortgages in 2013, according to a new Inside Nonconforming Markets analysis of Home Mortgage Disclosure Act data. Quicken Loans, the 10th-ranked jumbo lender in 2013, accounted for 1.26 percent of jumbos originated during the year, even after growing its originations at more than double the industry average compared with 2012. Banks were the top nine jumbo lenders in 2013 ... [Includes one data chart]
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