Dodd-Frank Act

Browse articles from all of our Newsletters related to Dodd-Frank Act.

August 10, 2018 - Inside FHA/VA Lending

MBA Urges Congress to Fix Problem of ‘Orphaned’ VA Mortgage Loans

The Mortgage Bankers Association called upon Congress to pass legislation to restore Ginnie Mae eligibility for so-called orphaned VA loans, which have caused a temporary disruption in the government-backed secondary market. In written testimony to the Senate Committee on Veterans’ Affairs last week, the MBA urged lawmakers to make technical corrections to restore the eligibility of certain Interest Rate Reduction Refinance Loans for pooling. The MBA estimated the VA orphan loan mess at roughly $500 million. Due to new loan seasoning requirements in the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, sime IRRRLs were rendered ineligible for Ginnie MBS pools. The loans were in transit when legislation addressing the problem of VA loan churning and serial refinancing became law in May. The new law’s seasoning provisions turned out to be ...


August 6, 2018 - Inside the CFPB

A New Strike: CFPB Loses Lawsuit Against Debt Collection Law Firm

A federal judge in Ohio recently sided with a law firm in a debt collection enforcement action taken by the CFPB. Industry attorneys said the ruling calls into question whether the bureau should bring future actions against such firms. The CFPB filed a lawsuit in April 2017 against the debt collection law firm Weltman, Weinberg & Reis for falsely representing in collection letters sent to consumers that attorneys were involved in collecting the debt. In most cases ...


July 23, 2018 - Inside the CFPB

Other News in Brief: Settlements With Payday Lenders; Task Force; New Deputy Director

CFPB Joins Task Force on Market Integrity and Consumer Fraud. The CFPB recently joined a new Task Force on Market Integrity and Consumer Fraud, created by President Trump pursuant to an executive order. The task force is led by the Department of Justice, with the participation of the CFPB, the Securities and Exchange Commission, and the Federal Trade Commission. The task force will provide guidance for the investigation and prosecution of cases [Includes four briefs] ...


July 23, 2018 - Inside the CFPB

CFPB Likely to Come Under Fire With Trump’s Supreme Court Pick

The controversial structure of the CFPB and its enforcement tactics will likely draw skeptical attention from the U.S. Supreme Court if President Trump’s pick, Brett Kavanaugh, is confirmed by the Senate, industry attorneys said. President Trump recently nominated Kavanaugh to replace Justice Anthony Kennedy, a moderate justice who has announced his retirement. Kavanaugh is a judge of the U.S. Court of Appeals for the District of Columbia Circuit with a pro-business ...


July 23, 2018 - Inside the CFPB

Kathy Kraninger Grilled by Democrats on Multiple Issues

Kathy Kraninger, President Trump’s pick to run the CFPB, faced tough questioning from Democrats in the Senate Committee on Banking, Housing, and Urban Affairs during a confirmation hearing last week. Democrats said Kraninger is not qualified for the top position in the powerful consumer agency. They hammered on her involvement with the Trump administration’s immigration policy that separates children from their parents and the response to ...


July 23, 2018 - Inside the CFPB

Takeaways: Kraninger’s List of Do’s and Don’ts for CFPB

During a heated hearing last week on Capitol Hill, the nominee to become the next CFPB director, Kathy Kraninger, identified some of her broad priorities for the consumer agency if she gets the job. Kraninger appeared to embrace the industry-friendly approach for the bureau that has been set by her boss at the Office of Management and Budget, Mick Mulvaney, who is also the acting director at the CFPB. Sen. Sherrod Brown, D-OH, said Kraninger showed a philosophy ...


July 13, 2018 - Inside FHA/VA Lending

HUD Issues Interpretive Rule to Fix Ginnie Mae’s VA IRRRL Snafu

The Department of Housing and Urban Development has issued an interpretive rule to clear up some of the confusion created by the recently approved Dodd-Frank reform act regarding the eligibility of certain VA refinance loans to serve as Ginnie Mae collateral. Although interpretive rules are exempted from public comment under the Administrative Procedures Act, HUD is seeking public input on its interpretation of the loan-seasoning provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which President Trump signed into law on May 24, 2018. Among other things, the statute prohibits Ginnie from guaranteeing payment on a security backed by a mortgage that does not meet its seasoning requirements. The protective measure was designed to deter lenders from encouraging veterans to refinance their loans often and repeatedly. Loan churning led to faster prepayment speeds on the ...


July 9, 2018 - Inside the CFPB

Lenders Call for Clarification of Fair Lending Standards

Industry groups are calling on the CFPB to provide clarification of fair lending standards under the Equal Credit Opportunity Act as it applies to disparate impact, according to recently filed comment letters on inherited regulations. Among other things, lenders are asking the CFPB to review its use of disparate impact based on a Supreme Court of the United States’ decision in Inclusive Communities. The case established a framework for the application of disparate impact ...


July 9, 2018 - Inside the CFPB

Nader Doesn’t Mince Words, Calls Mulvaney a ‘Vicious’ Henchman

Consumer advocate Ralph Nader, a one-time presidential candidate, recently blasted Acting CFPB Director Mick Mulvaney, calling him “Trump’s chief hatchet man extraordinaire.” Nader referred to Trump’s top aide as “easily one of the cruelest, most vicious presidential henchman in modern American history,” saying nowhere has Mulvaney “been more blatant about his ugly mission than in his efforts to freeze and dismantle the Consumer Financial Protection ...


July 9, 2018 - Inside the CFPB

The War is Over: CFPB Deputy Director English to Resign

Leandra English, deputy director of the CFPB, announced late last week she will resign from the agency early this week, ending her legal fight to become the bureau’s acting chief. English said she made the decision “in light of the recent nomination of a new director,” according to a statement posted on the Twitter account of English’s attorney, Deepak Gupta. Gupta also posted a statement saying he and English will bring to an end a pending case that ...


July 9, 2018 - Inside the CFPB

Mulvaney Up for Key White House Post. But Will He Get It?

Acting CFPB Director Mick Mulvaney has emerged as a leading candidate to become President Trump’s next chief of staff. Now, the big question: Will it actually happen? The speculation regarding Mulvaney and the White House chief of staff job, however, is not new. In February of this year, Mulvaney was said to be Trump’s top pick for the position, but nothing happened. “I remember he was rumored to be a candidate last time [John] Kelly was in trouble,” said one former ...


Poll

With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.

17%

11% to 25%. It’s a challenging market.

48%

25% to 40%. It’s going to be very ugly.

24%

No opinion.

11%