Industry representatives might be interested to know that the Treasury Department’s Office of Financial Research is working with the CFPB on some key regulatory initiatives. For instance, the OFR is providing technical support to the CFPB and other regulators to create a universal mortgage loan identifier to promote transparency, data aggregation, comparability, and analysis in the home mortgage market, the office said in a new report. The Dodd-Frank Act authorized the bureau to collect more data about individual mortgage loans and to mandate that entities reporting data under the Home Mortgage Disclosure Act provide a universal loan identifier for each loan or application that they are required to report. The OFR published a working paper on this subject in late ...

The FHA has announced loan limits in 2015 for high- and low-cost areas, virtually unchanged from the loan limits in effect through the end of the year. The new limits will take effect on Jan. 1, 2015. The maximum loan limits in high-cost housing areas will remain the same as the 2014 level of $625,500. The current standard loan limit in lower-cost areas will also remain unchanged at $271,050. The mortgage loan limits for Home Equity Conversion Mortgage loans will continue to have a maximum claim amount of ...

The FHA and Ginnie Mae will share in the record-setting $16.7 billion settlement between Bank of America, the Department of Justice and certain other federal agencies and six states to resolve claims related to mortgage fraud and toxic mortgage-backed securities. The FHA will receive approximately $800 million and an undisclosed amount for consumer relief from BofA. The bank was accused of falsely certifying poorly underwritten loans for FHA insurance, resulting in huge losses for the agency. It is unclear how much Ginnie Mae’s share would be from the settlement. “As a direct endorser of FHA-insured loans, Bank of America performs a critical role in home lending,” said U.S. Attorney Loretta Lynch for the Eastern District of New York during the announcement of the global settlement in August. “In obtaining a payment of $800 million and sweeping relief for troubled homeowners, we have not ...

State-regulated lenders and servicers will be required to report new information on servicing and originations to regulators beginning in the first quarter of 2015. Lenders weren’t able to win many concessions from the Conference of State Bank Supervisors, which proposed reporting changes for the Nationwide Mortgage Licensing System & Registry’s Mortgage Call Reports in October. The State Regulatory Registry, a subsidiary of the CSBS that operates the NMLS on behalf of state regulators, positioned the reporting requirements as part of an effort to reduce regulatory burden for lenders. “A goal of the MCR is...

The multi-agency final rule implementing the Dodd-Frank Act appraisal-related amendments to the Financial Institutions Reform, Recovery, and Enforcement Act is expected sometime this month, according to the Consumer Financial Protection Bureau’s semi-annual regulatory agenda. The amendments made by Dodd-Frank to FIRREA require new minimum requirements to be applied by states in the registration, reporting and supervision of appraisal management companies (AMCs). They further require implementing regulations for new quality control standards for automated valuation models (AVMs) “designed to ensure a high level of confidence in the estimates produced by the valuation models.” The pending regulations also are...

In the wake of the Federal Reserve’s announced end to its multi-part quantitative easing program, look for private investors to face a number of challenges when it comes to increasing their share of the MBS market, concluded a white paper by the Mortgage Bankers Association. The MBA paper, issued late last week, noted there is no single player waiting in the wings able to pick up the slack when the Fed relinquishes its role as the dominant purchaser of agency MBS. “Many of the potential private investors face...

The Obama administration noted this week that it is less than keen on the idea of taking up an outgoing Democrat senator’s call to end the six-plus year conservatorships of Fannie Mae and Freddie Mac. Last week, Senate Banking, Housing and Urban Affairs Committee Chairman Tim Johnson, D-SD, suggested the GSEs’ conservatorship be ended if legislative reform is not forthcoming.

Understanding the ebb and flow of mortgage debt is hampered by a lack of data on mortgage flows, making it more difficult for policymakers and regulators to deal with fluctuations in overall credit growth. A working paper published recently by the Federal Reserve attempts to make sense of the factors driving the volatility in the stock debt by analyzing changes in aggregate mortgage debt into mortgage inflows and outflows. It attributes these inflows and outflows to more micro-components such as investor activity, first-time homebuying and borrower credit score. “Quantifying these various flows into and out of the pool of mortgage debt allows for a precise assessment of the relative importance over time,” the paper noted. “Creating such data on an ...

Bank and thrift holdings of non-mortgage ABS hit a record $184.16 billion at the end of September, according to a new Inside MBS & ABS ranking and analysis. That represented a significant 7.6 percent increase in bank ABS investment in just one quarter. But the sharp increase in industry holdings was fueled by a massive acquisition of credit card ABS by TD Bank, the U.S. operation of the Canadian-based Toronto-Dominion Bank. TD Bank reported...[Includes one data chart]

The odds are stacked against auto loan ABS issuers being able to significantly lower the amount of credit risk they have to retain in securitizations under the recently adopted risk-retention rule. That’s mostly because of the strict underwriting criteria for underlying loans to qualify for the exemption from the requirement, according to a new ABS research report from Moody’s Investors Service. “Under the final risk-retention rule of the Dodd-Frank Act, auto loan ABS issuers can reduce the financial interest they must retain in their transactions through a qualifying automobile loan (QAL) exemption,” explained report authors Jeffrey Hibbs, assistant vice president, and Henry Chen, an associate analyst. Issuers can put...[Includes one data chart]