Late last month, briefs were filed in the U.S. Court of Appeals for the D.C. Circuit by the appellants in State National Bank of Big Spring, Texas, et al. v. Lew, et al., a case which includes a lingering challenge to the CFPB's constitutionality. The private appellants in the case are State National Bank of Big Spring, and two DC area non-profit organizations, the 60 Plus Association and The Competitive Enterprise Institute. Originally, they challenged the constitutionality of CFPB Director Richard Cordray's recess appointment, while also asserting that the bureau’s structure and authority were in violation of the Constitution's separation of powers.
Bureau Extends Deadline to Apply for Industry Advisory Positions. The CFPB recently extended the application deadline for positions on its Credit Union Advisory Council and Community Bank Advisory Council until March 14, 2014. The bureau said it is looking for experts in consumer financial products or services, as well as experts in consumer protection, community development, consumer finance, fair lending and civil rights. It also wants representatives of banks that primarily serve underserved communities, as well as those from communities that have been significantly affected by higher priced mortgage loans.
The Securities and Exchange Commission was set to vote on a final rule earlier this month that would set new disclosure requirements for non-agency MBS, but the agency is still considering how the final rule should be applied as industry participants clamor for further changes. The SEC this week re-opened the comment period regarding the pending requirements for disclosures on MBS and ABS, the so-called Reg. AB2 rule. The rule was first proposed in 2010 and re-proposed in 2011. The comment period on the second proposal closed...
Kara Stein, a commissioner at the Securities and Exchange Commission, said the SEC needs to take action regarding the rating services. It was one of many recent MBS-related calls for action directed at the SEC, from the agency's leadership, Congress and industry analysts. "We need to finally and firmly address the conflicts of interest in asset-backed securitizations and the provision of credit ratings," Stein said in a speech late last week. She noted...
Morgan Stanley has agreed tentatively to pay $275 million to the Securities and Exchange Commission to resolve an investigation into certain subprime MBS which the company sponsored and underwrote in 2007. The SEC has yet to sign off on Morgan Stanley's settlement proposal, which includes being charged for violation of federal securities laws and payment of disgorgement and penalties totaling $275 million without admitting to or acknowledging any wrongdoing. In an annual SEC filing, the New York-based bank said...
The Federal Housing Finance Agency ordered the two GSEs to sell at least 5 percent of their “less-liquid” mortgage assets, meaning whole loans and non-agency securities. CMBS are arguably the most liquid of these.
Some mortgage brokers see the switch to a mini-correspondent as their only way to stay in business due to provisions in rules from the Consumer Financial Protection Bureau.
The ATR survey was sent to 53 mortgage-originating entities, mostly mortgage bankers with some independent mortgage brokers and other originators. No credit unions or savings and loans responded.
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