The CFPB has released updates to its mortgage origination examination procedures and its mortgage servicing exam procedures. “These updates harmonize existing procedures for handling mortgage origination and mortgage servicing examinations with the revised interagency procedures that address the new mortgage regulations issued in January 2013, which have now taken effect,” the bureau said. The exam procedures for both mortgage origination and mortgage servicing now cover final rules issued by CFPB through November 2013. These...
Warner Introduces Prepaid Card Fee Legislation. Sen. Mark Warner, D‐VA, recently introduced legislation that would require new disclosures of prepaid card fees. Under Warner’s bill, the CFPB would be required to standardize the required disclosures. Under S. 1903, the Prepaid Card Disclosure Act of 2014, the bureau would be required to issue rules to establish the format for the fee disclosures. Also, the CFPB would have the authority to require an electronic link to the disclosures in the form of a quick response code, barcode or similar...
Industry analysts predict that the New York ruling will limit rep-and-warrant claims on vintage non-agency MBS as well as future claims on recently issued jumbo MBS.
Radian's Loan Amount Estimator enables lenders that are capping their debt-to-income ratios at 43 percent to calculate maximum loan amounts and sale prices based on the MI product selected.
Ginnie Mae gave seller/servicers a heads-up on the longer approval times in late November at an “education summit” in Washington attended by both new and existing issuers.
The statute of limitations for filing representation-and-warranty claims on non-agency MBS starts when a deal is issued, not when a defective loan isn’t cured, according to a recent ruling by the appellate court in New York. Industry analysts suggest that the ruling will limit rep-and-warrant claims on vintage non-agency MBS as well as future claims on recently issued jumbo MBS. In December, the appellate division of New York’s Supreme Court dismissed ACE Securities Corp. v. DB Structured Products. The lawsuit was brought by a trustee on behalf of investors against Deutsche Bank, the issuer of ACE 2006-SL2, a non-agency MBS issued in 2006. The investors, along with HSBC Bank, the trustee, were looking to enforce rep-and-warrant claims in 2012. New York imposes...
The absence of a ready secondary market for mortgages that don’t fit into the safe harbor or rebuttable presumption categories of a qualified mortgage under the Consumer Financial Protection Bureau’s ability-to-repay rule is discouraging mortgage lenders of all sizes from originating non-QMs – at least in the initial phase of the rule’s implementation. “A common question we’ve received … is whether we plan to write non-QM loans,” William Emerson, CEO of Quicken Loans, said before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit during a hearing this week on the effect of the CFPB’s new rule. “I can tell you categorically that Quicken Loans, like the overwhelming majority of lenders, will not lend outside the boundaries of QM. “In fact, even if we wanted to, we wouldn’t be able...
The long-anticipated final implementation of the so-called Volcker rule this spring will have a limited impact on securitized products, according to a recent report by Barclays. A requirement of the Dodd-Frank Act to prohibit banking entities from engaging in proprietary trading and making investments with private-equity funds and hedge funds, the Volcker rule was finalized by five federal regulators last month and becomes effective April 1, 2014. Banks should expect...
While many major banks plan to offer mortgages that don’t meet qualified mortgage requirements, the originations will largely be limited to interest-only mortgages for well-heeled borrowers. A handful of smaller players have plans to offer a different sort of non-QM, aimed at borrowers with higher debt-to-income ratios or via hybrid adjustable-rate mortgages. Among the firms targeting the non-QM space beyond IOs is Fenway Summer, headed by Raj Date, the former deputy director at the CFPB ...
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