Legislation

Browse articles from all of our Newsletters related to Legislation.

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 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

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 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 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.


June 1, 2018 - Inside FHA/VA Lending

S. 2155 Provides Protections to VA Borrowers; VA Issues Guidance

Provisions to protect VA borrowers from abusive lending are now in effect after President Trump signed into law a broad regulatory relief package last week. The VA measures are part of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, which the U.S. Senate passed on March 14 and the House approved on May 22. The bipartisan measures became effective for VA loan applications taken on or after May 25, 2018. They were part of the bipartisan Protecting Veterans from Predatory Lending Act, which Sens. Thom Tillis, R-NC, and Elizabeth Warren, D-MA, introduced in January and later incorporated in S. 2155. The bill was designed to protect VA borrowers from loan churning or serial refinancing and specifically targeted the VA’s Interest Rate Reduction Refinance Loan program, where the churned VA loans ended up. According to the agency, such practices not ...


June 1, 2018 - Inside Nonconforming Markets

Purchase-Mortgage Share of Jumbos Up in 2017

The purchase-mortgage share of jumbo originations increased in 2017 on an annual basis, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. The loans accounted for 63.6 percent of the $317.29 billion of jumbos originated in 2017, up from a 53.5 percent share the previous year. The emphasis on purchase mortgages varied among the top jumbo lenders. Purchase loans accounted for 69.4 percent ... [Includes three data charts]


June 1, 2018 - Inside MBS & ABS

Ginnie Likes Dodd-Frank Reform Bill Signed by Trump, but Some Suggest Tweaks Are Needed

The tailored Dodd-Frank reform bill signed into law by President Trump this month should be a boon to investors in Ginnie Mae securities because it will reduce loan churning, but there could be some bumps along the road until all the details are ironed out.


May 28, 2018 - Inside the CFPB

Small Nonbanks Want Risk-Based Supervision From the CFPB

Small nonbanks want the CFPB to exercise the risk-based approach to supervision mandated by the Dodd-Frank Act, arguing that regulators don’t understand the sector’s business model. A group of over 50 lenders sent a letter to the CFPB last week asking the bureau to exempt smaller independent mortgage bankers from its examinations and audits. They argued that the Dodd-Frank Act requires the agency to exercise risk-based supervision, taking into ...


May 28, 2018 - Inside the CFPB

Trump Signs Reg Relief Bill Into Law, No Change in CFPB Structure

Congress has sealed the deal on Dodd-Frank reform with a 258-159 vote last week in the House. Thirty-three House Democrats voted in favor of the reg relief bill, which President Trump promptly signed into law. The Economic Growth, Regulatory Relief, and Consumer Protection Act passed the Senate in March on a bipartisan 67-31 vote. The House approved S. 2155 last week without making any amendments. …


May 28, 2018 - Inside the CFPB

CFPB to Revisit the ECOA Requirements, Submit Guidance

Acting CFPB Director Mick Mulvaney said last week that the bureau will reexamine Obama-era regulations that protect consumers from discrimination in credit transactions. Mulvaney released a statement praising efforts by Congress and the White House to repeal bureau guidance that suggests indirect auto lenders are subject to liability under the Equal Credit Opportunity Act. He then said the bureau will reexamine the requirements of the ECOA ...


May 24, 2018 - Inside Mortgage Finance

Congress Enacts Significant, Not Sweeping, Changes To Dodd-Frank That Cut Small Banks More Slack

The House this week approved the Senate’s regulatory relief legislation, sending the package of targeted changes to the Dodd-Frank Act to the White House. With help from 33 Democrats, the measure cleared the House, 258-159, on Tuesday.


May 18, 2018 - Inside Nonconforming Markets

California Loses Market Share for Jumbos in 2017

California continues to account for the largest share of non-agency jumbo originations but it lost some market share in 2017, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Some $317.29 billion of jumbos were originated in 2017, down 9.7 percent from the previous year. The analysis is based on originations of first-lien, single-family mortgages, with loan-limits determined at the county level. Originations of ... [Includes one data chart]


May 14, 2018 - Inside the CFPB

Other News in Brief: Reg Relief Bill; Permanent Director; Enforcement Against Nationstar; Richard Cordray

The House Could Vote on the Reg Relief Bill By Memorial Day. House Speaker Paul Ryan, R-WI, last week said the House will take up S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, as currently written and free from amendment. “We’ve got an agreement to be moving different pieces of legislation,” Ryan said. “So, we will be moving [S. 2155]. We’re also going to be moving in the Senate a package of bills that we think [Includes four briefs] ...


May 14, 2018 - Inside the CFPB

Industry Wants Less Adjudication, While Consumer Groups Want More

In response to the CFPB’s second request for information on adjudication proceedings, industry groups want more cautious and fair adjudications, while consumer advocates oppose any scale-back of enforcement through adjudications. The 2010 Dodd-Frank Act, which created the CFPB, allows the bureau to enforce consumer financial protection laws through two different means. One is to file an action in U.S. district court, and the other is to initiate an adjudication proceeding ...


May 14, 2018 - Inside the CFPB

Survey Shows Lenders Lukewarm About Disrupting QM Regulation

Mortgage lenders spent a considerable amount of money implementing the qualified-mortgage rule, and many are not keen about a major overhaul, according to a survey by Strategic Mortgage Finance Group. Some 54 percent of 122 respondents to the survey favored no or only modest changes to QM rules. There was little variation between banks and independents, or large and small lenders. However, lender attitudes on regulatory change vary significantly with the size of ...


May 14, 2018 - Inside the CFPB

RESPA Clock Effectively Wound Back to Pre-CFPB State

PHH Corp. decided not to appeal to the U.S. Supreme Court a lower court ruling that effectively overturned the CFPB’s controversial interpretation of the Real Estate Settlement Procedures Act under former Director Richard Cordray. The lender’s lawsuit also unsuccessfully challenged the constitutionality of the CFPB. In January, the en banc panel of the U.S. Court of Appeals for the District of Columbia Circuit sided with PHH on the RESPA components of the dispute, invalidating ...


May 11, 2018 - Inside Mortgage Trends

Secondary Market Activity Strong in 2017

About 70.4 percent of the home loans originated in 2017 were sold to secondary market investors, according to a new Inside Mortgage Trends analysis of Home Mortgage Disclosure Act data released this week. According to the preliminary HMDA data made available by federal regulators, lenders reported $1.738 trillion in first-lien single-family mortgage originations in 2017. HMDA data cover about 96 percent of the market. The biggest buyers were Fannie Mae ... [Includes one data chart]


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Poll

On average, how much of a commission does your shop pay loan officers per loan they originate ?

25 to 50 basis points.

18%

51 to 100 basis points.

42%

101 to 150 basis points.

15%

North of 151 basis points. (We expect a lot.)

13%

We pay salary, not commission.

13%

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