Federal Agencies

Browse articles from all of our Newsletters related to Federal Agencies.

July 13, 2018 - Inside Nonconforming Markets

MBA Pushes CFPB for Non-Agency Help

In a recent comment letter submitted to the Consumer Financial Protection Bureau, the Mortgage Bankers Association argued for changes to regulations in an effort to boost originations of non-agency mortgages. The trade group cited problems with Appendix Q of the ability-to-repay rule and called for the government-sponsored enterprise “patch” for qualified mortgages to be extended to jumbo mortgages. Appendix Q sets QM standards for non-agency mortgages that aren’t eligible for sale to the GSEs or government-insured

July 12, 2018 - Inside MBS & ABS

Fed Incorporates Changes Called for by Securitization Industry in Rule on Single-Counterparty Credit Limits

A final rule from the Federal Reserve regarding single-counterparty credit limits looks a lot better to the securitization industry than the proposed rule. Industry participants had warned that the rule proposed in March 2016 was overly broad, complex and unworkable.

July 9, 2018 - Inside the CFPB

Other News in Brief: Student Loans Report; Data Securities; Payday-Lending Litigation; CFPB Civil Penalty

CFPB Studies How Student Loan Borrowers Transition Out Of Debt. The CFPB recently issued a report on student loan payments and broader household borrowing. The report provides a close look at borrowers’ use of credit as they approach and make their final student loan payments and what follows in the months beyond. One key finding: Most borrowers pay off a student loan before the final installment is due, often with a single large payment. Further [Includes Four Briefs] ...

July 9, 2018 - Inside the CFPB

Complaints About Mortgages, Student Loans Drop Sharply

Consumer complaints regarding student loans and mortgages fell sharply in the first half of 2018 compared to the same period a year earlier, according to a new analysis by Inside the CFPB. At the six-month mark, student loan complaints were down a stunning 62.5 percent from a year ago. Criticisms about home mortgages also experienced a double-digit decline – 24.9 percent – for the first half. On the other hand, total gripes filed by the general public [includes exclusive data chart] ...

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

Industry Groups Want the CFPB to Issue ‘Binding’ Guidance

In response to the CFPB’s request for information on regulatory guidance, a number of industry trade groups expressed their belief that such guidance, when issued, should be legally binding. Currently, the CFPB uses disclaimers on non-rule guidance, which means the advice given is only intended to aid understanding and implementation. Many industry groups said the disclaimers undermine the value of the guidance. “The broader and more extensive a disclaimer ...

July 9, 2018 - Inside the CFPB

CFPB Set to Implement HMDA Relief Later This Summer

The CFPB announced it will release guidance later this summer to provide exemptions to smaller financial institutions under the Home Mortgage Disclosure Act. The regulatory relief comes from the Dodd-Frank reform act – the Economic Growth, Regulatory Relief, and Consumer Protection Act – signed into law in May. The new law exempts depository institutions and credit unions that originated fewer than 500 closed-end mortgage loans or 500 open-end lines of ...

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

More Clarity Needed in TRID 2.0, Compliance Experts Say

The preamble of the integrated mortgage disclosure rule creates confusion about whether certain charges qualify for a 10 percent tolerance, and compliance experts suggest that lenders wait to see if there’s further guidance from the CFPB. The CFPB released a rule a year ago finalizing amendments to the Real Estate Settlement Procedures Act and the Truth in Lending Act Integrated Disclosure Rule. The amended TRID rule took effect in October 2017, but the mandatory compliance date…

July 9, 2018 - Inside the CFPB

Citi Rewarded by CFPB for ‘Self-Reporting’ Its Own Screw-up

The CFPB asked Citibank to pay $335 million to credit card customers who did not receive legally mandated interest rate reductions as part of a recent legal settlement, but the agency – interestingly – did not fine the bank for its misconduct. The bureau said it did not assess civil money penalties based on the fact that “Citibank self-identified and self-reported the violations to the bureau, and self-initiated remediation on affected consumers.” It’s not the first time the ...

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 ...

July 9, 2018 - Inside the CFPB

CFPB Closes Investigation of Zillow: Another Industry Win on RESPA?

The CFPB recently dropped its RESPA-related investigation of Zillow, deciding not to bring enforcement charges against the online real estate database firm, according to a new public filing. At issue was Zillow’s co-marketing program, which allows real estate agents and lenders to advertise together on the firm’s website. As part of the launch, Zillow had boasted that its “premier agents” can invite lenders to share marketing costs. “Lenders get featured next to the agents on Zillow ...

June 25, 2018 - Inside the CFPB

Other News in Brief: Year-End Credit Card Borrowing

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] ...

June 25, 2018 - Inside the CFPB

Industry Wants the CFPB to Make Permanent the ‘GSE Patch’ for QM

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 ...

June 25, 2018 - Inside the CFPB

Mulvaney to Cut CFPB Budget by 20 Percent, Stripping Travel Expenses

Acting CFPB Director Mick Mulvaney plans to cut the agency’s 2019 budget by 20 percent, bringing its spending down to roughly the level set in 2015. “I’ve asked them to run through the experiment of reducing spending by 20 percent,” to under $490 million, said the acting bureau chief in a recent round- table discussion with reporters. Mulvaney is also the director of the Office of Management and Budget. The CFPB later confirmed the spending cuts, noting that ...

June 25, 2018 - Inside the CFPB

Republican Lawmaker Asks CFPB To Limit the Effect of Guidance

A House Republican asked the CFPB to stop so- called regulation by enforcement and to clarify the use and role of the guidance it has issued. Rep. Blaine Luetkemeyer, R-MO, recently sent a letter to six agencies, including the CFPB, expressing concerns that guidance that does not go through notice-and-comment rulemaking has been used as the basis of enforcement actions. “Many of my colleagues and I hear frequently from financial institutions that guidance promulgated ...

June 25, 2018 - Inside the CFPB

NY Fed Report: CFPB Oversight Doesn’t Hurt Mortgage Lending

CFPB oversight has not significantly reduced the volume of mortgage originations, but it has changed the kinds of loans being made, the Federal Reserve Bank of New York found. Critics of the CFPB have argued that its activities increased compliance costs and ultimately reduced the availability of financial services to consumers. However, a recent New York Fed staff report found there’s little evidence supporting that theory in the mortgage business. The market share of ...

June 25, 2018 - Inside the CFPB

Agency Expected to Revisit Views On Marketing Services Agreements

The D.C. circuit decision involving PHH Mortgage and Sec. 8 of the Real Estate Settlement Procedures Act should lead the CFPB to rethink its 2015 guidance on marketing services agreements, industry groups say. The CFPB under former director Richard Cordray issued guidance suggesting that many MSAs are designed to evade RESPA’s prohibition on the payment and acceptance of kickbacks and referral fees. “What the bureau did was to create an impression that it would ...

June 25, 2018 - Inside the CFPB

CFPB Settles With Installment Lender in 2nd Mulvaney Action

The CFPB fined a South Carolina-based installment lender $5 million for unlawful debt collection practices, including threatening consumers with jail, shoving them and physically blocking a consumer from leaving private property. It is the second enforcement action since Mick Mulvaney, the White House budget director, took the reins of the CFPB last year. The Security Group and its subsidiaries own and operate approximately 900 locations in 20 states across the country ...

June 25, 2018 - Inside the CFPB

Lenders Still Need to Comply With Payday Rule in August 2019, So Far

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 ...

June 25, 2018 - Inside the CFPB

Trump Nominates an OMB Official To Lead CFPB; Mulvaney Stays

President Trump last week nominated Kathy Kraninger, a little-known White House budget official, to head the CFPB. The nomination has set the stage for a contentious Senate confirmation process. Most observers were surprised by Trump’s CFPB pick as Kraninger’s name has never come up in public discussion of possible nominees to become the next director of the bureau. The first question for many was: Who is Kathy Kraninger? The nominee currently serves as ...

June 25, 2018 - Inside the CFPB

New York Judge Rules CFPB’s Structure Unconstitutional

A federal judge in New York last week ruled that the structure of the CFPB is unconstitutional, creating a conflict with a D.C. circuit court ruling. The decision by Judge Loretta Preska of the U.S. District Court for the Southern District of New York also said the CFPB cannot bring claims under the Consumer Financial Protection Act or pursue enforcement actions against the defendants in the case, RD Legal Funding and related entities. An en banc decision in January ...

June 22, 2018 - Inside MBS & ABS

Fed MBS Unwinding Slow But Certain as Economists See Minimal Market Impact in the Short Term

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

June 21, 2018 - Inside Mortgage Finance

Trump’s CFPB Nominee Takes Flak But Resets the Clock for Mulvaney

President Trump this week nominated a little-known White House budget official to run the Consumer Financial Protection Bureau, effectively allowing Mick Mulvaney to stay as the agency’s acting director, possibly until 2020.

June 15, 2018 - Inside FHA/VA Lending

USDA Securitization Fell in 1Q18, PennyMac Grabs Market Lead

Issuance of mortgage securities backed by USDA loans dropped during the first three months of 2018. Approximately $4.03 billion of rural housing loans with a USDA guarantee were delivered in Ginnie Mae MBS during the first quarter, down 18.3 percent from the previous quarter. Agency data also showed an 11.7 percent decline in USDA securitization volume from the same period a year ago. Rural housing loans accounted for 1.5 percent of all loans securitized in Fannie Mae, Freddie Mac and Ginnie Mae pools and 2.8 percent of loans with private or government-backed mortgage insurance. Purchase loans comprised the bulk of USDA loans that were delivered into Ginnie MBS pools. PennyMac knocked Freedom Mortgage out of first place with a total of $753.3 million in securitized USDA loans despite a 10.4 percent decline in production. Freedom Mortgage accounted for $523.3 million of USDA loans pooled in ... [Charts]

June 14, 2018 - Inside Mortgage Finance

CFPB Doesn’t Have to Make Consumer Complaints Public, But the Data Are Helpful, Law Professors Say

The Dodd-Frank Act does not require the Consumer Financial Protection Bureau to provide public access to its consumer-complaint database, but the law doesn’t prohibit the bureau from doing so, some law professors said.

June 14, 2018 - Inside Mortgage Finance

Next Permanent CFPB Director Expected to Take an Approach Similar to Mulvaney’s

Mick Mulvaney has been repeatedly saying he is not burning down the Consumer Financial Protection Bureau, but he has changed its course, reorganized it and opened up every nook and cranny for reevaluation and public input.

June 11, 2018 - Inside the CFPB

Other News in Brief: Complaint Database; Town Hall Meeting; Permanent Director

Democratic State AGs Urge CFPB to Retain Public Access to Consumer Complaint Database. A coalition of 15 state attorneys general, led by New York AG Barbara Underwood, sent a joint letter to the CFPB, urging the bureau to retain its public database of consumer complaints. In the letter, the AGs said a public consumer complaint database is consistent with the CFPB’s statutory mandate in the Dodd-Frank Act, The law requires the agency to [Includes three briefs] ...

June 11, 2018 - Inside the CFPB

Industry and Consumer Groups Want More External Engagements

In response to a request for information on external engagements, both industry groups and consumer advocates want the CFPB to increase external engagement and pay more attention to it. The agency now has four advisory groups – the Consumer Advisory Board, the Community Bank Advisory Council, the Credit Union Advisory Council and the Academic Research Council. The bureau also uses other forums such as town hall meetings and field hearings to obtain ...

June 11, 2018 - Inside the CFPB

Democrats Stress Data in CFPB Rulemaking; Lenders Want Clarity

Democratic lawmakers sent comment letters to the CFPB in response to its request for information regarding the bureau’s rulemaking processes, emphasizing the importance of data collection in making new rules. Sens. Elizabeth Warren, MA, and Mark Warner, VA, wrote in a comment letter to Acting Director Mick Mulvaney that data collection is essential to rulemaking at the CFPB. “The CFPB’s decision-making is at its best when it has data to guide the ...

June 11, 2018 - Inside the CFPB

CFPB Issues a Different Complaint Report on Agency’s Debt Collection

The CFPB issued its first complaint report since Mick Mulvaney was appointed acting director. The report differs from the monthly complaint reports issued under former Director Richard Cordray. The bureau in late May released a complaint snapshot on debt collection. It provides complaint data as of April 1, 2018. The last monthly complaint report was released in October 2017 before Cordray left. One significant change in the new report is that it does not include complaint volume ...

June 11, 2018 - Inside the CFPB

Organizational Changes to CFPB Might Have Profound Impact

Mick Mulvaney has made many significant changes at the CFPB since President Trump named him acting director of the agency in November. Attorneys said the organizational changes may have the most profound impact. Mulvaney was not a fan of the consumer bureau, which he called a joke “in a sick, sad way.” Six months into his interim tenure, he was doing everything he could to change the consumer agency both structurally and operationally, in how it makes ...

June 11, 2018 - Inside the CFPB

CFPB to Tailor Enforcement Based On Scale and Intent of Violations

Going forward, the CFPB plans to consider the scale and frequency of violations when determining future enforcement actions, Acting Director Mick Mulvaney said. In remarks at a public policy luncheon hosted by Women in Housing and Finance, a professional group, Mulvaney said the consumer agency will decide whether the violations are systematic or intentional when determining potential actions against companies under its jurisdiction. For example, 12,000 violations ...

June 11, 2018 - Inside the CFPB

CFPB to Resume Private Consumer Data Collection; Brief to Congress

Acting CFPB Director Mick Mulvaney recently announced that the consumer agency will resume the collection of private consumer data. He curbed data collection immediately after he took over the CFPB last year due to cybersecurity concerns. “Out of an abundance of caution and a desire to protect Americans’ privacy, I placed a hold on the collection of personally identifiable information and other sensitive data,” Mulvaney said in a memo to the CFPB staff ...

June 11, 2018 - Inside the CFPB

CFPB, Payday-Lending Groups Seek Rule Delay and Suit Stay

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 ...

June 11, 2018 - Inside the CFPB

CFPB Officially Drops RESPA Kickback Case Against PHH

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 ...

June 11, 2018 - Inside the CFPB

Advisory Board Members Accuse Mulvaney of Shunning Their Input

Acting Director Mick Mulvaney last week abruptly cancelled in-person meetings with the advisory groups, sparking concerns that he is shunning input from outside groups. Shortly afterwards, he disbanded three groups and announced plans to start from scratch. Mulvaney canceled a Consumer Advisory Board meeting scheduled for June 6 and 7, and a previous meeting in February, which the board members said had been on the looks for months. A Credit Union ...

June 11, 2018 - Inside the CFPB

CFPB Disbands Three Advisory Boards, Wanting Diverse Voices

The CFPB fired all the members serving on three of its advisory boards, including the Consumer Advisory Board, indicating a shift in its approach to external engagement. The consumer agency announced last week that it plans to reconstitute three of its advisory groups – the Consumer Advisory Board, the Community Bank Advisory Council, and the Credit Union Advisory Council – with “new, smaller memberships.” “By both right-sizing its advisory ...

June 7, 2018 - Inside Mortgage Finance

CFPB to Drop PHH Dispute Over RESPA Interpretation

Attorneys at the Consumer Financial Protection Bureau this week formally threw in the towel on the agency’s controversial interpretation of anti-kickback provisions in the Real Estate Settlement Procedures Act.

June 7, 2018 - Inside Mortgage Finance

CFPB, Freddie Mac Separately Urge Potential Mortgage Borrowers to Shop Around When Considering a Lender

The Consumer Financial Protection Bureau and Freddie Mac released separate reports in May suggesting that potential borrowers should talk to multiple lenders when seeking a mortgage. The organizations noted that a significant share of borrowers are missing out on thousands of dollars in savings by neglecting to consider offerings from a variety of lenders.

June 7, 2018 - Inside Mortgage Finance

CFPB to Implement Dodd-Frank Reform Act, More Mortgage Compliance Relief is Possible

Most of the mortgage provisions in the recently enacted Dodd-Frank reform act will not take effect immediately and will require action by the Consumer Financial Protection Bureau.


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.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

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