In response to the CFPB’s request for information on adopted rules, industry groups especially want the bureau to make some changes to the qualified mortgage standards under the ability-to-repay rule, including making the “GSE patch” permanent. The ATR rule generally requires a maximum debt-to-income ratio of 43 percent in order to get QM status. Special rules apply to agency mortgages, however, including a temporary provision that loans eligible for sale to the ...

The CFPB has issued a report on end-of- year credit card borrowing and repayment of credit card balances in the following year. The report found the year-end rise in consumer debt was most pronounced in general purpose credit card debt and retail store card debt. Delinquency rates on credit cards rise during and after the holiday season, driven by consumers with subprime credit scores, the report said [Includes one brief] ...

The CFPB is expected to move more quickly to reconsider its payday-lending rule after a federal court denied the delay of the rule’s compliance date that had been requested in a joint motion filed by the CFPB and two trade groups. Two payday-lending trade groups – the Community Financial Services Association of America and the Consumer Services Alliance of Texas – in April filed a lawsuit in Texas federal district court, alleging the agency’s payday-lending rule is unlawful ...

The Treasury Department wants to reduce the GSEs’ footprint in the mortgage market, according to Treasury Counselor Craig Phillips. He also reiterated, about a week before the administration formally published its thoughts on reform (see story page 3), that ultimately the goal is to take Fannie Mae and Freddie Mac out of conservatorship. He said that at 70 percent the federal share of housing is clearly far too high. The Treasury official spoke at a Bank of America Merrill Lynch mortgage and housing finance conference in New York last week that was closed to the press. BAML provided a report on his remarks.

As the Federal Reserve slowly unwinds its agency MBS holdings, economists forecast there are more disposals to come and without much market disruption.

Defaults remain low on student loan refinancing originated by online lenders due to the overall high quality of their borrowers, and some new repayment assistance programs will help the strong performance, said Moody’s Investors Service.

Lawsuits brought by cities with allegations of violations of the Fair Housing Act (FHAct) by lenders are continuing after a decision by the U.S. Supreme Court with a mixed message for lenders.

The CFPB last week dismissed its precedent-setting case against PHH Corp., officially overturning the bureau’s controversial interpretation of the Real Estate Settlement Procedures Act under former Director Richard Cordray. In the end, the four-year legal battle over alleged RESPA violations regarding captive reinsurance arrangements ended up with no fine or penalty being assessed on the mortgage lender. The final court ruling that upheld the constitutionality ...

The CFPB and two payday-lending trade groups filed a joint motion seeking a stay of a lawsuit challenging the CFPB payday-lending rule, and to delay the compliance date set by the rule. The lawsuit at issue was filed by the Community Financial Services Association of America and Consumer Services Alliance of Texas in April in a Texas federal district court. The two groups alleged that the consumer agency’s payday-lending rule is unlawful because ...

Industry trade groups are shopping lists of FHA priorities following last week’s Senate confirmation of Brian Montgomery as FHA commissioner and assistant secretary of housing at the Department of Housing and Urban Development. On May 23, the full Senate voted 74-23 to clear the former FHA commissioner for a return engagement after resolving a partisan block on all of President Trump’s nominees for top positions at HUD. Twenty-five Democrats joined 49 Republicans in approving Montgomery. He served as FHA commissioner under both the George W. Bush and Obama administrations. Montgomery was nominated initially in September 2017 and was approved by the Senate Banking Committee on Nov. 28 by an 18-5 vote. Under Senate rules, his nomination was returned to the president at the end of 2017. Montgomery was re-nominated in early January and was again approved by the ...