Mortgage banking industry representatives told the CFPB it should not be in a rush to make any changes to its resubmission guidelines for data that will be submitted under the bureau’s new Home Mortgage Disclosure Act rule. Because of continuing problems in implementing the integrated disclosure rule, “companies have not yet had available sufficient resources to begin HMDA implementation in earnest,” the Mortgage Bankers Association told the bureau in a recent comment letter. “Also, considering the unprecedented expansion of data elements required under the new HMDA rule, it can be anticipated that when implementation begins, there will be a far better understanding of myriad issues including appropriate resubmission guidelines.” Consequently, MBA said that while some changes may now be warranted, ...

Overall consumer complaints to the CFPB reached their lowest level in at least a year and a half, according to a new analysis and ranking by Inside the CFPB. Total gripes to the bureau slid 5.0 percent in the first quarter and were off 3.0 percent on an annual basis, data from the CFPB consumer complaint database show. Kvetching about residential mortgages was down slightly more, falling 6.7 percent and 4.1 percent, respectively, for those two time periods. In fact, mortgage-related belly-aching hasn’t been this low since the fourth quarter of 2013. The most dramatic change was seen in the prepaid card space, where criticisms plunged 73.3 percent in 1Q16. ... [with exclusive data chart] ...

U.S. Military Personnel Continue to Report Problems With Their Mortgages. Complaints to the CFPB from American military personnel about their mortgages rose 10 percent from 2014 to 2015, according to a recent report from the bureau. The good news for mortgage lenders is that total complaints about their operations – roughly 9,900 – were less than half of the total generated by debt collection practices, which came to about 20,500. ... FHFA Wants Public Input on National Mortgage Borrower Survey. The Federal Housing Finance Agency is seeking public comments about the American Survey of Mortgage Borrowers, an information collection effort otherwise known as the National Survey of Existing Mortgage Borrowers. ...

Fannie Mae and Freddie Mac purchased $127.7 billion of single-family loans last year that failed to meet the baseline qualified-mortgage standard set by the Consumer Financial Protection Bureau, according to a new analysis by Inside The GSEs. Under the agency’s ability to repay rule, the GSEs can ignore the restriction that qualified mortgages must have a debt-to-income ratio of 43 percent or less. This so-called agency “patch” was set up to last for seven years, or until 2021, as long as Fannie and Freddie remain in conservatorship or receivership. In other regards, such as the 30-year limit on maximum loan term and the prohibition on interest-only payments, the GSEs...

Due diligence firms led an effort to issue a draft proposal late last week that would establish a standardized approach for reviewing compliance with the TRID mortgage-disclosure rule. The effort organized by the Structured Finance Industry Group was met with praise by industry participants. “The draft proposal represents a significant step forward for developing an industry standard treatment of errors related to the new residential mortgage disclosure requirements,” Fitch Ratings said. TRID is industry shorthand for a new integrated disclosure rule that covers requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Third-party due diligence providers have identified...

The average daily trading volume in agency MBS climbed to $201.4 billion in February, the best reading in nine months and a sign that investors will still flock to government-backed products in times of uncertainty, especially extreme uncertainty. Late this week, market watchers expressed their concerns about the terrorist bombings in Belgium as well as continued worries about China’s slowing economy and sagging oil prices. In short order, they piled into MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. Barry Habib, who runs MBS Highway, a rate-lock service, told...

Standard & Poor’s kept its position as the top provider of ratings for newly issued non-mortgage ABS last year, although the volume of deals the company rated fell 10.1 percent from 2014, according to a new Inside MBS & ABS analysis. S&P rated ABS bonds totaling $106.86 billion in new issuance in 2015, or 61.5 percent of deals for which rating information was available. That was down slightly from its league-leading 64.1 percent share of the rated 2014 ABS market. The company’s strong suits were credit card ABS and deals backed by vehicle loans and leases. Fitch Ratings finished...[Includes two data tables]

A federal appeals court in Washington, DC, ordered the transfer of a case challenging risk-retention rules to the district court because the petitioner sought review of an agency action “in the wrong court.” Writing for the majority, Judge Janice Brown of the U.S. Court of Appeals for the District of Columbia shifted the Loan Syndications and Trading Association’s (LSTA) challenge to the lower court for lack of statutory authorization to review the rule. “As it turns out, LSTA’s challenge on the merits will have to wait,” she wrote. Jointly prescribed by the Securities and Exchange Commission, Federal Reserve Board, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency, the credit risk-retention regulations required...

The Department of Veterans Affairs has issued additional lender guidance for dealing with the public water contamination problem in Flint, MI. The guidance expands on the agency’s minimum requirements for properties backed by VA loans. The guidance refers to policy in the VA Lender’s Handbook which requires properties to have “a continuing supply of safe and potable water for drinking and other household uses,” before being approved for a VA-backed home loan. In the VA’s view, safe and potable water also refers to water used for bathing, showering and sanitary uses. Properties not in compliance with this requirement will not be eligible for the VA guaranty. Proper mitigation of lead-contaminated water must include a central filtering system that is acceptable to local health authorities and that can provide safe and potable water. Appraisers must comment and adjust for any ...

Errors in TRID disclosures on jumbo mortgages played a key role in the recent closure of W.J. Bradley Mortgage, but the privately held nonbank may have had other problems as well, according to industry officials who claim to have intimate knowledge of the company’s operations. A thin capital base is one of those problems. An investor in the company and an investment banking official each told...