Compass Point predicts that CFPB will lose its dispute with PHH. The CFPB is hosting an eRegulation webinar. HUD and First Citizens Bank (SC) resolve a fair lending complaint spurred by HMDA data. And CFPB staff exit for SunTrust and JH Capital Group.

Commercial banks and thrifts reported a further decline in their holdings of non-mortgage ABS during the first quarter, according to a new Inside MBS & ABS analysis of call-report data. As of the end of March, banks held a combined $131.96 billion of ABS in their portfolio, including assets intended to be held to maturity as well as those available for sale. That represented a 2.3 percent drop from the end of 2015, and a hefty 15.9 percent decline from a year ago. It was...[Includes two data tables]

The so-called TRID-lock seen in the jumbo MBS market since October appears to be easing as both Redwood Trust and JPMorgan Chase have come to market with deals that include some loans with compliance problems. Before this week, only one jumbo MBS included mortgages subject to TRID, a deal from Two Harbors Investment in March. Many industry participants blamed...

The average daily trading volume in agency MBS climbed to $215.9 billion in May, the highest reading of the year, according to the Securities Industry and Financial Markets Association. But don’t get too excited. May’s activity is still below the two-year high established in January 2015 and nowhere near the peaks established back in 2008 when crumbling financial markets caused investors to go gaga for agency MBS. The relatively low daily trading volumes continue...

Government-sponsored enterprise Fannie Mae recently issued some additional guidance to its mortgage lender partners about self-reporting deficiencies in complying with the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. In a new selling-guide announcement, Fannie said, “Lenders are not obligated to self-report any matters related to possible TRID non-compliance, regardless of the number of loans involved, except in two limited circumstances where a repurchase demand is an authorized remedy.” The first circumstance is...

Home prices in many areas have fully recovered from the declines seen during the financial crisis, according to a variety of home price indices. While prices above levels seen before the financial crisis could cause alarms about another housing bubble, Sean Becketti, chief economist at Freddie Mac, is seeking to ease concerns. Last week, Freddie economists published an in-depth analysis of home price trends and median household income. They said the house price-to-income ratio appears to be the clearest indicator of the long-run sustainability of house prices. And even the PTI ratios that are relatively high in specific areas don’t necessarily indicate that there’s another housing bubble. “Based on this approach, we’re...

A coalition of multi-sectoral groups is urging the Consumer Financial Protection Bureau to work with other federal agencies to provide strong protections for mortgage applicants and homeowners who have limited English proficiency (LEP). The Americans for Financial Reform, an umbrella organization for more than 200 civil rights, consumer, labor, business, investors, faith-based, and civic and community groups, said that while the CFPB has taken steps to assist LEP consumers, the agency and federal banking regulators should go further to make the mortgage marketplace fully and fairly accessible to these consumers. “Mortgage origination and servicing must be...

A new jumbo MBS from Redwood Trust will mark the second non-agency MBS to include mortgages subject to the TRID mortgage disclosure rule. The real estate investment trust plans to issue a $344.89 million deal next week, according to a presale report from Kroll Bond Rating Agency. The rating service said 366 mortgages, accounting for 74.8 percent of the loan pool, are subject to the combined Truth in Lending Act/Real Estate Settlement Procedures Act rule. Redwood will issue...

HSBC Bank has filed a summons with notice in the New York State Supreme Court on Bank of America and Merrill Lynch to appear and face charges alleging complicity in the origination and sale of toxic mortgage loans that led to millions of dollars in losses to investors. Filed last week, the summons alleges that BofA, Merrill Lynch and Countrywide Home Loans were aware of the defects in approximately 1,359 residential mortgage loans that were securitized and sold to investors in 2007. The loans had an aggregate principal balance of $564.8 million. According to filing documents, Merrill Lynch purchased...

A strong spring home-buying season and continued low rates are feeding optimism among selected lenders, fueling hopes that healthy production in May will lead to an even better June, according to interviews conducted by Inside Mortgage Finance. “May was bigger than April by 10 to 15 percent at both Skyline and New Leaf,” said Bill Dallas, CEO of Skyline Lending, Calabasas, CA. (New Leaf is the wholesale affiliate.) Not too long ago, Dallas wasn’t feeling all that optimistic about 2016. But that was then. “The year started out...