Regulations

Browse articles from all of our Newsletters related to Regulations.

December 17, 2018 - IMFnews

Ginnie Stats Reveal Sharp Increase in FHA Risk Layering Over Two Years

Loans with DTI ratios exceeding 50 percent accounted for 29.60 percent of FHA business in Ginnie MBS during the first two months of the fourth quarter…


December 17, 2018 - IMFnews

Outlook for Prime Non-Agency MBS Tied to GSE Pricing, Tools

With Mel Watt’s term as FHFA director ending in early January, a new director appointed by President Trump is widely expected to take actions to reduce the GSEs’ footprint…


December 17, 2018 - IMFnews

FHA and VA Introduce New Loan Limits for 2019

FHA will increase its floor for forward mortgages to $314,827 from $294,515.


December 17, 2018 - IMFnews

Deputy HUD Secretary Pam Patenaude Quits After 15 Months on the Job

She brought a certain depth of knowledge to the table for her boss, Ben Carson, a career brain surgeon with little in the way of housing and mortgage experience.


December 14, 2018 - Inside FHA/VA Lending

Around the Industry

Mortgage broker trade group introduces NAMB All-In. Genworth launches risk-based pricing engine. VA updates fee-cost schedule. Industry groups pressure Senate to confirm Trump nominee for GNMA.


December 14, 2018 - Inside FHA/VA Lending

FHA Drops Warranty Requirements for New Single-Family Construction

The Department of Housing and Urban Development has issued a final rule streamlining single-family home-warranty requirements for FHA insurance.


December 14, 2018 - Inside FHA/VA Lending

FHA’s Mandatory Second Appraisal for Certain HECMs Now Automated

The FHA has announced that protocols in place for second appraisal requirements for certain Home Equity Conversion Mortgage loans are now fully automated.


December 14, 2018 - IMFnews

What We’re Hearing: FHA Loan Limits / What a Shutdown Means / The Return of Angelo Mozilo / The Finger of Blame Points to Wall Street / New Disclosures from Ditech / A Subservicing Business Dominated by One Client

The panel Mozilo spoke on was billed: “Join two titans of the industry as they discuss the past, present and future of the mortgage industry.”


December 14, 2018 - IMFnews

A Kinder, Gentler CFPB Under Kathy Kraninger? BCFP or CFPB?

Kraninger said she will make a “near-term” decision on changing the agency’s name…


December 14, 2018 - IMFnews

Calabria Gets the Nod for the FHFA Job. Rebuilding Capital on His Agenda?

A fool’s bet: that the GSE conservatorships will end anytime soon…


December 14, 2018 - IMFnews

FHFA’s Proposed Rule on Credit Scores a Setback for Vantage Score

VantageScore is not happy with the FHFA's latest action...


December 13, 2018 - IMFnews

Short Takes: Headed Into Receivership: Fannie and Freddie? / Politically Pragmatic / No Life in the Common / Coming Soon: A Platform Closure at Ocwen / A New 52-Week Low

Federal Financial Analytics calculates the trigger will be pulled by mid-2019.


December 13, 2018 - Inside Mortgage Finance

Kraninger Signals a More Moderate Tone After Being Confirmed as CFPB Director

The Senate late last week narrowly confirmed Kathy Kraninger as director of the Consumer Financial Protection Bureau. In her first public remarks, the new director set a more moderate tone for the watchdog agency than recently departed acting Director Mick Mulvaney did during his tenure.


December 13, 2018 - Inside Mortgage Finance

Worries About FHFA Direction Persist, But It May Take A Year Before the Senate Clears Calabria as New Director

The White House this week finally made up its mind on a new regulator for the government-sponsored enterprises, picking conservative economist Mark Calabria to head the Federal Housing Finance Agency. Now comes the hard part: Getting the Senate to hold confirmation hearings and actually approve him.


December 13, 2018 - IMFnews

Finance of America Will Pay $14.5 Million to Settle FHA Claims Tied to One of Its Acquisitions

The complaint further alleges that company executives have been aware of the poor EPD rates since 2011 but apparently did nothing to resolve the problem.


December 12, 2018 - IMFnews

Short Takes: loanDepot Loses its Product Chief / Bill Dallas and Cloudvirga / Kudos on the Calabria Pick from HFSC Chairman Hensarling / A Candidate Himself Once? / A New Hire for Vendor Valuation Partners

Cloudvirga, at one time, was headed by industry veteran Bill Dallas...


December 12, 2018 - IMFnews

Pick of GSE Critic Mark Calabria Will Mark a New Era at the FHFA

Tom Piercy of Incenter Mortgage Advisors: “Calabria is not an advocate for our industry – but he is also being appointed by the president, who does not want housing to falter between now and 2020.”


December 12, 2018 - IMFnews

New CFPB Chief Plans a Three-Month ‘Listening Tour’

Kraninger on the recent name change of the agency: “I care more about what the agency does than what it is called…”


December 12, 2018 - IMFnews

Cost-Benefit Analysis Likely Focus of New CFPB Leadership

The annual salary for the assistant director to head the office of cost-benefit analysis is between $200,595 and $247,500.


December 11, 2018 - IMFnews

It’s Official: Trump Picks GSE Critic Mark Calabria to Head the FHFA

The nomination had been expected for several weeks now and paves the way – quite possibly –for limitations on GSE pilot programs, loan parameters and secondary market liquidity.


December 11, 2018 - IMFnews

Short Takes: The Six Horsemen of the GSE Apocalypse / If You Have to Ask, You’re in Trouble / G-Fees Hold Steady / Plaza Home’s New Tag Line / NAMB Giving Away Software for Free

NAMB is giving away free software...


December 11, 2018 - IMFnews

CFPB Imposes Zero Civil Money Penalty for Violations, Again

The CFPB alleged that State Farm violated the Fair Credit Reporting Act.


December 11, 2018 - IMFnews

One GSE Shareholder Speaks Up: Calabria Will be Constrained in His Mission to Dissolve Fannie and Freddie

James Fenkner says Calabria will be “constrained in his mission to dissolve Fannie and Freddie.”


December 10, 2018 - Inside the CFPB

Other News in Brief

CFPB Releases 2018 Financial Literacy Annual Report; Former CFPB Deputy Director Raj Date Joins a Fintech Company; Rep. Patrick McHenry Elected Top GOP Member of House Financial Services Committee.


December 10, 2018 - Inside the CFPB

CFPB Imposes Zero Civil Money Penalty for Violations, Again

The CFPB last week ordered State Farm Bank, a federal savings association in Bloomington, IL, to stop illegal credit reporting practices, without imposing a fine for its wrongdoings.


December 10, 2018 - Inside the CFPB

Fair Lending Activities to Gain Traction Next Year, Say Experts

The CFPB last week released a fair lending report covering the agency’s activity in 2017. The report generally summarized the bureau’s past fair lending efforts and laid out its priorities.


December 10, 2018 - Inside the CFPB

Mulvaney’s Rebranding Efforts Could be Costly for Companies

Changing the name of the CFPB seems a small step, but it could cost financial institutions roughly $300 million to make behind-the-scenes changes, according to an internal CFPB document.


December 10, 2018 - Inside the CFPB

Former CFPB Watchdog Launches Competing Student Loan Center

Seth Frotman, the former student loan ombudsman who dramatically quit the CFPB in August, has launched his own initiative to help solve the student debt crisis.


December 10, 2018 - Inside the CFPB

Cost-Benefit Analysis Likely a Focus of New CFPB Leadership

The CFPB is seeking an assistant director to head the office of cost-benefit analysis, indicating that the agency going forward would focus on the economic implication of its activities.


December 10, 2018 - Inside the CFPB

Deputy Director Explains CFPB’s Consumer Protection Approach

Since taking the reins of the CFPB last year, Acting Director Mick Mulvaney has changed its course. In a recent speech, the agency’s second in command, Acting Deputy Director Brian Johnson, explained how the current leadership defines consumer protection and principles behind its actions.


December 10, 2018 - Inside the CFPB

Top Senate Democrat Slams Mulvaney’s Leadership at CFPB

Sen. Sherrod Brown, D-OH, recently released a staff report accusing Acting CFPB Director Mick Mulvaney of undermining the agency’s mission to protect American consumers.


December 10, 2018 - Inside the CFPB

VA Lender Sued for Deceiving Veterans Regarding IRRRLs

The CFPB last week sued Village Capital & Investment for deceiving veterans regarding the Interest Rate Reduction Refinance Loans program.


December 10, 2018 - Inside the CFPB

States Gear up for Fair Lending Enforcement, With a Few Limits

State regulators will likely put more effort into enforcing fair lending laws, even as the CFPB continues to reassess the use of the disparate-impact theory under the Equal Credit Opportunity Act.


December 10, 2018 - Inside the CFPB

Kraninger Confirmed as CFPB Director. Will She Bring Change?

The Senate last week confirmed Kathy Kraninger as the second permanent director of the CFPB, on a 50-49 party-line vote.


December 10, 2018 - IMFnews

Short Takes: Hope in Cash-Out Refis / loanDepot’s Refi Stats / Position Filled / Chicago-Area Lender Gets Fannie Mae Approvals / More on Calabria and the FHFA Job / Mulvaney, Mnuchin Up for the Chief of Staff Job? / Waterstone Hires Rocky (Rockwell)

Fannie Mae has approved Neighborhood Loans, Lombard, IL, as a new seller/servicer...


December 10, 2018 - IMFnews

New MBA President Broeksmit Toes the Party Line on GSE Reform

The MBA chief also makes it blatantly clear that he is no fan of any “recap and release” proposals for the government-sponsored enterprises either...


December 10, 2018 - IMFnews

REIT Investments in GSE CRT Deals Could Surge

Fannie and Freddie addressed that problem by beginning to structure CAS and STACR transactions as real estate mortgage investment conduits – which REITs can buy more freely.


December 7, 2018 - IMFnews

What We’re Hearing: Mark Calabria to Head the FHFA (Looks That Way) / Can Mulvaney Fix the U.S. Debt Problem? / Keeping the Debt Clock at the HFSC? / Kraninger Yes, Michael Bright No / Nomura and Ditech (More) / CMG Mortgage Hires Regency Executive / Home Point Goes All-TPO / The Midwest Mortgage Mecca

If Michael Bright is not confirmed in the current Congress, President Trump will have to re-nominate him...


December 7, 2018 - IMFnews

Lenders Face Uncertainty After Supreme Court Refuses Case

Bank of America, the nation’s fourth largest mortgage servicer, appealed the case to the Supreme Court…


December 7, 2018 - IMFnews

How to Shrink the GSE Footprint Without Having to Ask Congress To Do Anything

Want to shrink Fannie and Freddie? Cut investor loans, then move on to cash-out refis…


December 6, 2018 - IMFnews

Short Takes: Stock Market Ugly / Bring on the Cash-out Refis? / GSE Stocks Can’t Catch a Break / Carrington Readies First Non-QM MBS / New Penn Unveils New Name: NewRez

Carrington Mortgage is working on its first non-QM securitization...


December 6, 2018 - IMFnews

CFPB Accuses Nevada Nonbank of Misleading Vets on IRRRLs in San Antonio

The government charges, the “apples to apples” comparisons on refis shown to prospective customers by Village Capital’s LOs were flawed and had “inaccurate” results.


December 6, 2018 - Inside Mortgage Finance

Subservicing Sector Continues to Grow at a Steady Clip as States Act as ‘Mini-CFPBs’

Subservicing vendors ended the third quarter of 2018 with $2.33 trillion of contracts on their books, up 4.5 percent from June and 12.0 percent higher than a year ago, according to a new Inside Mortgage Finance ranking. [Includes one data chart.]


December 6, 2018 - IMFnews

Kathy Kraninger is About to Head the CFPB, but Who is She?

Observers note that CFPB nominee Kraninger has no track record in financial services…


December 5, 2018 - IMFnews

Short Takes: What’s in a Name? Answer: $300 Million / Come On, Mick! We Thought You Were Pro-Business! / $300 Million? At Least Software Firms Will Make Out / Home Flips Headed for a Fall? / Who’s Doing Your Underwriting? / Law Firm Overcharges Fannie and Pays for It

Mulvaney has a reputation of being pro-business. Is it possible he might turn the name-change ship around to save American companies $300 million?


December 5, 2018 - IMFnews

HFSC Hearing on GSE Bill Postponed. Time is Running out for Chairman Hensarling…

Some industry lobbyists believe the Senate Banking Committee hearing on GSE pilot programs will not be held this year at all.


December 4, 2018 - IMFnews

Short Takes: Nomura and Ditech? / Ocwen Sets a New Low / Fannie, Freddie and NPL Sales / Citadel’s Growth in Nonprime Servicing / A New Hire for Mortgage Network

Fannie Mae and Freddie Mac continue to sell NPLs but for how long?


December 4, 2018 - IMFnews

Senate Dem Report Accuses Mulvaney of Cherry Picking the Law to Promote an ‘Ideological Agenda’

The report says that while running the agency, Mulvaney has “cherry-picked the law to promote his ideological agenda.”


December 4, 2018 - IMFnews

With No Chance of Passage, Hensarling’s GSE Reform Bill Gets an Airing on Thursday

When the measure was first introduced, one housing lobbyist quipped: “This is like someone laying on their death after drinking and sinning and finally realizing they need to get baptized. This is not being introduced for good political reasons.”


December 4, 2018 - IMFnews

OCC Issues Warning About Nonbanks and Looser Underwriting

OCC examiners noted greater use of asset dissipation underwriting, a practice used to qualify borrowers using a “hypothetical income stream from their asset liquidation rather than debt-to-income ratios.”


Poll

With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.

45%

Yes, but only incrementally.

16%

We’re pondering a move into non-QM, but haven’t made up our mind.

13%

No, definitely not. We view it has too risky.

26%