Regulations

Browse articles from all of our Newsletters related to Regulations.

January 18, 2018 - IMFnews

Short Takes: House GSE Bill Due by Mid-March? / Providing Technical Assistance: the Staff of the FHFA / Time for a Pay Raise for Layton and Mayopoulos? / Hiring Underwriters from Wells Fargo / CFPB’s Mulvaney to Yellen: I Don’t Need Your Money (Right Now)

If a GSE reform bill does not get signed into law this year, how much longer will the CEOs of Fannie Mae and Freddie Mac stick around?


January 18, 2018 - Inside Mortgage Finance

Hensarling’s Panel Advancing More Housing Finance, Regulatory Relief Legislation This Week

The House Financial Services Committee this week was advancing more than a dozen and a half regulatory relief measures as Inside Mortgage Finance was going to press, including some mortgage-related legislation that would expand the qualified-mortgage box for smaller entities and exempt many institutions from the rules and regulations issued by the Consumer Financial Protection Bureau.


January 18, 2018 - Inside Mortgage Finance

Lenders Face a Plethora of Changes in Tax Law, Including Revised Treatment of Rate-Lock Commitments and Hedges

The recently enacted Tax Cuts and Jobs Act was pitched as a simplification of the tax code. And while the bill could ultimately reduce some tax-related complexities, lenders are facing sweeping changes this year.


January 18, 2018 - IMFnews

CFPB Chief Wants to Make Sure Consumers are Protected and Companies Aren’t Misteated

The first RFI from the CFPB will be on Civil Investigative Demands, which are issued during an enforcement investigation.


January 18, 2018 - IMFnews

FHFA Chief Unveils Agency Views on GSE Reform, Worries About Having Too Many ‘SMEs’

Watt and his staff do not want taxpayers to foot the bill for failing mortgage guarantors…


January 18, 2018 - IMFnews

Four Years In, Non-QM Market Struggles to Amass Volume

Authoritative numbers on the size of the non-QM space are difficult to come by.


January 17, 2018 - IMFnews

Short Takes: Freddie Mac, an Actual Lender? / GSEs Working to Revise MI Rescission Relief Policies / The Last Time I Saw Richard / MIAC Selling $71MM of RPLs / Movement Hires Chief Credit Officer

Fannie Mae and Freddie Mac are working with the nation’s mortgage insurance firms to revise rescission relief principles...


January 17, 2018 - IMFnews

Oh Carol! Former FHA Chief’s Plan to Restructure the Government MI Garners Mixed Reviews

Galante is a former FHA commissioner who presently serves as faculty director of the Terner Center for Housing Innovation at the University of California Berkeley. She also sits on the board of Ocwen Financial.


January 17, 2018 - IMFnews

HUD Secretary Carson Sets Up ‘Order of Succession’ at Ginnie Mae. First Up: Michael Bright

The Trump White House was slated to nominate mortgage banker David Kittle to head the agency but back in November he grew tired of waiting and withdrew his name from consideration.


January 17, 2018 - IMFnews

New Residential to Raise $440 Million Via Stock Sale. More Acquisitions Ahead?

The REIT has a current market cap (share price multiplied by number of units outstanding) of $5.27 billion.


January 16, 2018 - IMFnews

Short Takes: GSE Reform, Yes. Passage? No / Galton’s Return to Nonprime / Citi’s Incredibly Shrinking MSR Portfolio / Legislative Reg Relief On the Way? / English Wants Expedited Review in CFPB Appeal

GSE reform may emerge from the Senate Banking Committee, but as for final passage...


January 12, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Announces Revised Method for Calculating Initial MIP for HECM Refis. FHA has modified the formula for calculating the initial mortgage insurance premium for Home Equity Conversion Mortgage refinances with case numbers assigned on or after Sept. 19, 2017. The formula was modified on Nov. 14, 2017. The change conforms to the final rule FHA implemented last year to strengthen the HECM program. The revised formula has been posted on FHA’s HECM page on hud.gov, FHA Connection Release Notes, dated Dec. 28, 2017. The FHAC Release Notes outline the changes and processing instructions for lenders to calculate the initial MIP for HECM refis. HUD Releases Guide to Help Borrowers and Disaster Victims Avoid Foreclosure. The Department of Housing and Urban Development has released the Homeowners Guide to Success to help struggling homeowners and ...


January 12, 2018 - Inside FHA/VA Lending

Florida District Court Allows U.S. to Intervene in FHA FCA Suit v. BofA

A federal district court in Florida has agreed to a government motion to intervene in a False Claims Act lawsuit against Bank of America in order to reach a settlement on behalf of a relator. Bruce Jacobs, a foreclosure attorney and relator in South Florida, filed the lawsuit. A former Miami prosecutor, he now represents homeowners in foreclosure proceedings initiated by financial institutions, including BofA. In his lawsuit, Jacobs alleged that BofA submitted false claims in violation of the FCA. Specifically, the bank allegedly submitted endorsements with unauthorized signatures and false mortgage assignments that would confer standing to foreclose. In addition, Jacobs additionally asserted a reverse FCA claim alleging that BofA made false statements when entering into the 2012 National Mortgage Settlement (NMS) consent judgment with the U.S. government. The landmark $25 billion settlement with ...


January 12, 2018 - Inside FHA/VA Lending

VA Clarifies Buyout Criteria for Uninsured, Unguaranteed Loans

Ginnie Mae is redefining the term “defective mortgage” to remind issuers of their obligations when confronted by a mortgage that does not have federal insurance or guarantee. The action also clarifies options issuers may consider in dealing with defective mortgages. Under their guarantee agreement with Ginnie, issuers are required to cure, buy out or replace single-family mortgages or manufactured home loans that are missing the requisite FHA insurance or VA or U.S. Department of Agriculture guarantee within 120 days after the issue date of the mortgage-backed securities. Ginnie made clear that mortgages that do not have federal insurance or guarantee by the deadline for final certification of the related pool or loan package are defective. In addition, mortgages that have been rejected by FHA, VA or USDA, or for which federal insurance or guarantee have been withdrawn, are defective as ...


January 12, 2018 - Inside FHA/VA Lending

VA Clarifies Rules for Allowing Use Of Third-Party Verification Services

VA lenders may use third-party vendors to verify borrower income, employment and asset information subject to certain conditions, according to the Department of Veterans Affairs. Officials issued the clarification in response to lender inquiries regarding the use of third parties to determine if a borrower qualifies for a VA loan. The agency said it would accept third-party verifications if lenders are fully responsible for verifying the accuracy of information the borrower provided in the loan application. Lenders must initiate and receive all verifications of employment and deposits, requests for credit reports, and credit information. When a real estate broker/agent or any other party requests information regarding borrower income, employment or personal assets, the lender must identify the requester as its agent and ensure that any report is returned directly to them. In addition, the lender must disclose the ...


January 12, 2018 - Inside FHA/VA Lending

Galante’s FHA Restructuring Plan Elicits Bland Stakeholder Response

A former FHA commissioner’s proposal to restructure FHA as part of broader housing-finance reform has received mixed responses from industry stakeholders and the Department of Housing and Urban Development. While participants in a recent panel discussion hosted by the Urban Institute praised the proposal, they admitted to still being unsure about FHA’s role in a revamped world of Fannie Mae and Freddie Mac, and a single mortgage-backed security. The recommendation for a reconstituted FHA is part of a paper presented for debate at the Urban Institute this week by Carol Galante, faculty director of the Terner Center for Housing Innovation at the University of California Berkeley, and former head of FHA during the second Obama administration. Under Galante’s proposal, all of FHA’s mortgage insurance programs would remain with the agency while rental assistance and other ...


January 12, 2018 - Inside FHA/VA Lending

VA, Ginnie Mae Working on Long- Term Cures to Rapid Refinancing

Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan-churning problem. Lenders urged Congress and the two agencies to be cautious in prescribing fixes that could potentially cut off VA funding. Jeffrey London, director of the VA Loan Guaranty Service, said a proposed rule that includes a net tangible benefits test for veterans as well as seasoning and recoupment requirements will be issued soon. The VA is also planning to require upfront lender disclosure of the terms and benefits of a streamline or cash-out refi, including the recoupment period of the new transaction. Even though serial refinancing is not systemic to the VA portfolio, it has grown in ...


January 12, 2018 - Inside FHA/VA Lending

Ginnie MBS Program Faltered In 2017, Refi Flow Up in 4Q17

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]


January 12, 2018 - IMFnews

HMDA Requirements a Top Bank Compliance Concern

Banks are increasingly worried about staying compliant with all the recent regulations they’re contending with – and the Home Mortgage Disclosure Act is at the top of the list.


January 11, 2018 - Inside Mortgage Finance

Galante Paper Recommends Restructuring FHA As a Self-Sustaining Government Corporation Within HUD

A former FHA commissioner called for the restructuring of the agency as a government corporation within the Department of Housing and Urban Development with its own separate appropriation, budget control and risk-management capabilities.


January 11, 2018 - IMFnews

Short Takes: Rates Back Up/Applications Rise/Caliber's Non-Prime MBS/Reg C, Z Thresholds Rise

Mortgage rates are back up for the week ending Jan. 11, 2018, following Treasury yields, according to the latest results of the Freddie Mac Primary Mortgage Market Survey, released Thursday morning.


January 11, 2018 - IMFnews

What to Expect Under Mulvaney: Maybe Significant Rule Changes?

It’s possible that mortgage lenders and servicers will see the CFPB during the tenure of Acting Director Mick Mulvaney use the five-year “look back” the bureau is required to perform to make significant changes to a pair of major rulemakings: the Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosure rule (TRID) and the ability-to-repay rule.


January 11, 2018 - IMFnews

Judge Denies Bid to Dump Mulvaney, English Expected to Appeal

Judge Timothy Kelly of the U.S. District Court for the District of Columbia circuit ruled late Wednesday, as expected, to deny CFPB Deputy Director Leandra English’s personal legal bid soliciting a preliminary injunction to unseat Acting Director Mick Mulvaney and install her as the acting director.


January 10, 2018 - IMFnews

What to Expect Under Mulvaney: Less Hostility Toward Industry

CFPB Acting Director Mick Mulvaney has less than 200 calendar days left to occupy the director’s chair, so industry officials have been wondering what they can expect from the bureau as long as he’s in charge.


January 9, 2018 - IMFnews

CFPB’s Oversight Functions Hampered by Freeze on Collection of Personal Information

“The CFPB cannot fulfill its core functions without collecting personally identifiable information,” said Sen. Elizabeth Warren, D-MA.


January 8, 2018 - Inside the CFPB

Other News in Brief: New CFPB Chief of Staff; English Investigated; Mortgage Legislation

New Chief of Staff at CFPB was Staff Director of the House Financial Services Committee. The CFPB named a new chief of staff Jan. 5: Kristen Sutton Mork, who’s leaving her post as staff director of the House Financial Services Committee. The announcement did not come from the CFPB – it came from Rep. Jeb Hensarling, R-TX, chairman of the HFSC, who mentioned it in an email sent to members of the media.... Republican Senator Wants Leandra English Investigated. Sen. Ron Johnson, R-WI, reportedly has asked the U.S. Office of Special Counsel to probe Leandra English’s move to “burrow” into a “career position” at the CFPB. One major broadcast news organization, citing a letter from Johnson, reported last week that Johnson asserted her move was “hastily approved” as part of “a flawed vetting process” in the wake of President Trump’s election. The report could not be immediately confirmed.


January 8, 2018 - Inside the CFPB

Complaints About Student Loans, Credit Reports Surged Last Year

Consumer complaints overall continued their downward trajectory in the fourth quarter, but it was a different story when it came to areas such as student loans and credit reports, both of which shot upwards on an annual basis. Overall, total gripes from end users of the financial system fell 24.1 percent year over year and 23.1 percent from the third quarter of 2017 to the fourth. But criticisms about student loans surged 109.9 percent on an annual basis, despite a drop of 30.1 percent from 3Q17 to 4Q17. Credit reports were similarly slammed, with a 99.8 percent leap in complaints year over year, a 32.2 percent fall off quarter to quarter notwithstanding. On the other hand [includes exclusive data chart] ...


January 8, 2018 - Inside the CFPB

Senate Democrats Seek to Further Empower State Attorneys General

Democrat Sens. Dianne Feinstein and Kamala Harris of California, Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut recently introduced legislation to allow state attorneys general and other state law enforcers to issue subpoenas during the course of investigations regarding compliance with state law by national banks. The Accountability for Wall Street Executives Act of 2017 would clarify that state attorneys general have authority to conduct visitorial oversight of federally-chartered national banks. It also would revise language in the National Bank Act that the Supreme Court interpreted as limiting the visitorial powers of state law enforcers when addressing compliance with state law by national banks. Additionally, the measure would permit subpoenas for suspected violations of real estate lending laws. “With ...


January 8, 2018 - Inside the CFPB

How Should Lenders Cope With English v. Mulvaney?

Regardless of the outcome of the struggle for control over the CFPB in the wake of former Director Richard Cordray’s departure, lenders are being conservatively advised to maintain compliance practices that can withstand the ebb and flow of political appointees, according to one top compliance attorney. “While the Trump administration is pushing for deregulation and removing the independence of the CFPB, if it is successful, it may be risky and costly for the financial industry to abandon all of the concepts of fairness to consumers that have been embodied in the CFPB’s actions,” Maria Macoubrie, of counsel in the Kansas City, MO, office of the Stinson Leonard Street law firm, said in a recent online blog. She conceded that less ...


January 8, 2018 - Inside the CFPB

No Court Ruling Yet in CFPB’s English v. Mulvaney Dispute

Judge Timothy Kelly of the U.S. District Court for the District of Columbia circuit heard oral arguments Dec. 22 in the dispute between CFPB Deputy Director Leandra English and the Trump administration over the appointment of Mick Mulvaney as acting director of the bureau. However, he has yet to issue any ruling and did not indicate when one could be expected. Attorney Theodore Flo, an associate with the Ballard Spahr law firm in Washington, DC, who attended the oral arguments, noted in a blog post, “Based on the judge’s denial of English’s request for a temporary restraining order and his questions and observations at the hearing, it seems likely that he will deny her preliminary injunction motion as well. English ...


January 8, 2018 - Inside the CFPB

HMDA Requirements a Top Bank Compliance Concern

Banks are increasingly worried about staying compliant with all the recent regulations they’re contending with – and the new Home Mortgage Disclosure Act requirements are still one of the biggest concerns. A new regulatory and risk management survey from Wolters Kluwer based on 2017 data registered a 3 percent increase over 2016. “The ability to maintain compliance in an environment of heightened regulatory oversight – highlighted by a spike in the number of major new regulations – remained the biggest overall compliance concern, as cited by 67 percent of respondents,” the report stated. Concerns over fair lending regulatory examinations increased by 5 percent to 46 percent, and concerns jumped 13 percent in measuring the ability to manage risk across all lines of business ...


January 8, 2018 - Inside the CFPB

Bureau to Take Another Look At New HMDA Requirements

In conjunction with the interagency regulatory pledge to pursue a “good faith efforts” approach to the enforcement of new reporting requirements under the Home Mortgage Disclosure Act, the CFPB also announced it plans to initiate a rulemaking to reconsider various aspects of the 2015 HMDA rule – most notably on issues such as the institutional and transactional coverage tests and the rule’s discretionary data points. “More specifically, the rulemaking may re-examine lending-activity criteria that determine whether institutions are required to report mortgage data,” it said. Other revisions might be made to the new requirements to report certain types of transactions. The bureau also is likely to re-assess the additional information that its HMDA rule requires beyond the new data points specified ...


January 8, 2018 - Inside the CFPB

CFPB, Other Feds, to Cut Lenders Some ‘Good Faith’ Slack on HMDA

As 2017 came to an end, the CFPB and other federal prudential regulators informed the industry they would implement a “good faith efforts” enforcement philosophy toward lender compliance with the new requirements under the Home Mortgage Disclosure Act that took effect Jan. 1. The CFPB in 2015 put out its rule under which financial institutions were required to collect and report new mortgage data points for loans made after Jan. 1, 2018. This past August, the bureau released a final rule that clarified some reporting requirements, increased the threshold for collecting and reporting data on home equity lines of credit for two years, and made various technical corrections. “The bureau recognizes the significant systems and operational challenges needed to meet ...


January 8, 2018 - Inside the CFPB

Speculation Swirls Around NCUA Chief as Possible CFPB Head

While most of the universe of CFPB watchers were focusing on the legal struggle between Acting Director Mick Mulvaney and Deputy Director Leandra English or the possibility that President Trump might name another fierce critic of the CFPB, such as Rep. Jeb Hensarling, R-TX, to head up the agency, it looks like a stealth candidate has entered the game. National Credit Union Administration Chairman Mark McWatters is that person. McWatters’ name has suddenly been floated by various industry observers and insiders as being on the short list of possible nominees for the consumer bureau. Nominated by President Obama to both the NCUA board and then to head the Export-Import Bank (the latter nomination being blocked by Sen. Richard Shelby, R-AL) ...


January 8, 2018 - Inside the CFPB

What to Expect Under Mulvaney: Maybe Significant Rule Changes?

It’s possible that mortgage lenders and servicers will see the CFPB during the tenure of Acting Director Mick Mulvaney use the five-year “look back” the bureau is required to perform to make significant changes to a pair of major rulemakings: the Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosure rule (TRID) and the ability-to-repay rule. Donald Lampe, a partner with Morrison & Foerster law firm in Washington, DC, explained, “In Dodd-Frank, there’s a five-year required regulatory review, and there are two of those regulatory reviews that are still under advisement: one for TRID and the other for the ATR/qualified mortgage rule. “If I’m thinking about 2018, I feel pretty confident to say that those processes bear careful attention ...


January 8, 2018 - Inside the CFPB

What to Expect Under Mulvaney: Less Hostility Toward Industry

CFPB Acting Director Mick Mulvaney has less than 200 calendar days left to occupy the director’s chair, so industry officials have been wondering what they can expect from the bureau as long as he’s in charge. According to some top compliance attorneys, the CFPB will be far less aggressive towards the industry, but hardly provide the corporate love-fest opponents of the AD fear. Laurence Platt, a partner with the Mayer Brown law firm in Washington, DC, told Inside the CFPB, “Like former Sen. George Romney’s famous prediction about the U.S. getting out of Vietnam, I expect a ‘phased withdrawal.’” The CFPB “will continue to supervise ‘covered persons,’ but, whether it is supervision or enforcement, I expect the CFPB’s use of ...


January 8, 2018 - IMFnews

New Chief of Staff at CFPB was Staff Director of the House Financial Services Committee

Kristen Sutton Mork will leave her post as staff director of the House Financial Services Committee to become chief of staff at the Consumer Financial Protection Bureau.


January 5, 2018 - IMFnews

Rep. Hensarling Announces that the CFPB has a New Chief of Staff: His Staff Director at the HFSC

Rep. Hensarling said Mork will assume her new role in the coming weeks.


January 8, 2018 - IMFnews

Looks Like Mortgage Lenders are Over-Reserving for GSE Buybacks

It appears that many lenders may have what is known in the industry as “redundant reserves”…


January 5, 2018 - IMFnews

What We're Hearing: And Now for a Word About Dow 25,000 / A 2 Percent FRM, Finally? / A Former Fannie Mae CEO and the U.S. Budget / Citadel CEO Perl Bullish on Non-QM / Hensarling Headed to Wall Street?

What's next for Jeb Hensarling? FHFA or Wall Street?


January 5, 2018 - IMFnews

Not a Done Deal: Changing the Definition of ‘Past Due’ on Mortgages

Regulators are set to announce that the past-due change is being delayed – and reconsidered…


January 5, 2018 - IMFnews

About that GSE Bill Being Worked on in the Senate…

Progressives are worried that in 2019 a new Federal Housing Finance Agency director will takeover, undoing much of what they like about the current system…


January 4, 2018 - Inside Mortgage Finance

In Year One of the Trump Administration, FHA Laid the Groundwork for Future Action on Several Regulatory Issues

FHA saw many of the policies under the previous administration shelved during the first year of the Trump administration, including a proposal for a 25 basis point reduction in the annual mortgage in-surance premium, while waiting for a new commissioner to head the program.


January 4, 2018 - Inside Mortgage Finance

CFPB, Other Federal Regulators to Provide a ‘Good- Faith’ Grace Period for Enforcing New HMDA Rules

Mortgage lenders pressing to get compliant with the new data collection and reporting require-ments under the Home Mortgage Disclosure Act got a bit of a reprieve, as the Consumer Financial Pro-tection Bureau and the other prudential regulators announced they would take “good-faith efforts” ap-proach to enforcement.


January 4, 2018 - IMFnews

Short Takes: Senate GSE Bill Due Out This Month? / But Will it Pass? / The Unstoppable LendingTree / Mortgages and the Weed Trade? / Hamilton Hires Former Wells-JPM-Freddie Exec to be CEO

When Fannie and Freddie request a fresh draw of taxpayer funds from Treasury to deal with their DTA "problem," it will poison the well for conservative Republicans...


January 3, 2018 - IMFnews

Short Takes: Morgan Stanley and PHH? / Share Price? / Subservicing Rules the Roost / Embrace Hires Legal Affairs Chief / A Name Change for Mortgage Lending Services

At Sept. 30, 2017, PHH had a total servicing portfolio (including subservicing contracts) of $162.7 billion...


January 3, 2018 - IMFnews

PHH Will Pay $45 Million to Settle State Servicing Allegations

PHH Mortgage is in the process of transforming into a subservicing specialist.


January 3, 2018 - IMFnews

Notwithstanding Efforts to Resolve FCA Issue, Lenders Remain at Risk

Aggressive FCA enforcement and steep settlement amounts have caused some banks to exit from the FHA market.


January 3, 2018 - IMFnews

FHA Nominee Montgomery Has to Resubmit Financials. A March Seating?

Like scores of other Trump appointees, a final vote on Montgomery’s nomination as assistant secretary for Housing was not acted upon by yearend…


January 2, 2018 - IMFnews

Short Takes: Pickup Picks Up the Pace on Impac Buys / Buy Low, if You Can Get It / Stolen GSE Money? / No Longer ‘Distressed’ / New AI Chief Starts his Term

Richard Pickup, a real estate investor by trade, owns more than 10 percent of Impac…


Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.

33%

No. It’s still difficult compliance/regulatory-wise.

20%

Maybe. It’s under consideration.

33%

Not now. But things could change as 2018 progresses.

13%