A conflict of interest exists if an employee of a federal credit union disapproves member loans and then refers them to a mortgage banker that pays for such referrals, according to the National Credit Union Administration. Not only would there be a potential violation of the NCUAs lending policy but the referral arrangements may also violate...
Federal Financial Institutions Examination Council. Revised Interagency Exam Procedures for Regulation Z (TILA). Notwithstanding court petitions seeking to stop the implementation of a new loan originator compensation rule, the Federal Reserve Board announced revised examination procedures that will ensure...
The potential shutdown of the federal government at the end of this week could have sudden and detrimental effects on FHA borrowers and lenders, although the situation was still very much in flux as Fridays midnight deadline rapidly approached. This is the worst time to introduce this uncertainty into...
Congress explicitly exempted FHA and Department of Veterans Affairs loans from the definition of qualified residential mortgage in the Dodd-Frank Wall Street Reform and Consumer Protection Act. While those government loans will not be subject to the risk-retention requirements for mortgage securitizations, the proposed QRM safe harbor for... [Includes one graph]
The package of government-sponsored enterprise reform legislation introduced into the House Financial Services Committee last week dominated headlines, but sources on Capitol Hill said forthcoming legislation will also aim to tighten FHA underwriting in some manner, continuing to protect the programs...
Risk-retention requirements proposed by federal regulators last week strongly favor the government-sponsored enterprises over non-agency securitization, according to industry analysts. The pristine mortgages in Redwood Trusts recent jumbo securitization would not completely meet the standards and the vast majority of... [Includes one graph]
Dissent threatens to split a coalition of federal agencies and 50 state attorneys general over a proposed settlement with major mortgage servicers over improper and abusive servicing practices. As federal agencies and state regulators prepare to meet with mortgage servicers for the first time next week, their unity appeared to fray ...
Mortgage lenders that are still using captive reinsurance should give this business tool a second look in the wake of a tentative $34 million class-action settlement between Bank of Americas Countrywide unit and Pennsylvania borrowers. The U.S. Court of Appeals for the Third Circuit gave...
Mortgage lenders may be given a free hand in structuring their retained risk, although how they should do it remains unclear. Regulators are reportedly close to giving lenders more elbow room on risk retention, which may come up for discussion next week when the Federal Deposit Insurance Corp.s board of directors holds...
Bureau of Consumer Financial ProtectionTaking Consumer Complaints. The BCFPs implementation team is seeking comment on receiving and processing consumer complaints, which is one the fledgling agencys functions when it goes fully operational as scheduled on July 21. The implementation team, which is...