Regulations

Browse articles from all of our Newsletters related to Regulations.

October 19, 2018 - IMFnews

What We’re Hearing: One Last Criticism from Jeb Hensarling Regarding the FHFA / In Agreement on 80 Percent / Departing Fannie, Freddie Directors May Pose a Challenge / Two Major Concerns: Originations and Profit Margins / Plaza Home Wants AEs / Bill Ashmore’s New Job?

The FHFA IG says "a number" of director positions at Fannie and Freddie are set to expire: "Changes in leadership can lead to a lack of attention to internal controls..."


October 19, 2018 - IMFnews

Aging IT Systems a Major Concern for FHA, VA and USDA

FHA is running on a 40-year old IT system…


October 18, 2018 - IMFnews

Short Takes: BCFP, Not CFPB / At MBA, Standing Room Only for Mick Mulvaney / Annaly Readies Non-QM MBS / A Warehouse Securitization Deal for loanDepot / Cash is King

An affiliate of Annaly Capital Management is preparing to issue a $384 million mortgage-backed security stocked with non-qualified mortgages and loans for investment properties…


October 18, 2018 - IMFnews

Nonbank Liquidity a Growing Concern. Ginnie Readies Stress Tests

Ginnie EVP Maren Kasper said the agency is currently working on stress tests for its issuers and could have results by early December…


October 18, 2018 - Inside Mortgage Finance

CFPB Making Rules to Define ‘Abusive,’ But Experts Disagree on the Necessity of Doing so

The Consumer Financial Protection Bureau will issue a new rule that clarifies what lending practices will be considered “abusive,” said Acting CFPB Director Mick Mulvaney, speaking at the annual convention of the Mortgage Bankers Association this week.


October 17, 2018 - IMFnews

Short Takes: What Will Ben Carson Cut? / GSE DTI Ratios Too High? / A Woman May Head the FHFA / Nomura Settles with DOJ / Strong Earnings from MGIC / Needed: Some CFPB Guidance

Budget cuts coming to HUD?


October 17, 2018 - IMFnews

Fannie Sells Three VA Buildings as it Preps for Office Consolidation

The Fannie Mae Virginia properties were sold for roughly $130 million…


October 17, 2018 - IMFnews

Ginnie Mae Terminates 360 Mortgage Group from Program

As IMFnews went to press, multiple telephone messages and emails to 360 Mortgage had not been returned.


October 17, 2018 - IMFnews

Complaints Filed with the CFPB Fell by Double Digits in 3Q18

The three major credit reporting bureaus – Experian, Equifax and TransUnion – continued to rank first, second and third, respectively, in the number of complaints filed…


October 15, 2018 - Inside the CFPB

CFPB to Define What’s ‘Abusive’ Under Its UDAAP Authority

The CFPB will start a rulemaking process to clarify what practices will be deemed “abusive” in the bureau’s sweeping authority to ban unfair, deceptive and abusive acts or practices, said Acting CFPB Director Mick Mulvaney. Speaking at the annual convention of the Mortgage Bankers Association in Washington this week, Mulvaney said Congress has defined “unfair” and “deceptive” practices fairly clearly, but the meaning of “abusive” is not well established in the law....


October 16, 2018 - IMFnews

Short Takes: Trump’s Point Man on GSE Reform: Yank Fannie and Freddie’s Charters / New 52-Week Lows / Ginnie Issuer Gets its Ticket Pulled / Uncle Sam is Spending Too Much Money (Again) / A Name Change for Ocwen?

Meanwhile, there was chatter at the MBA convention that Ginnie Mae had just yanked the ticket of one of its MBS issuers.


October 16, 2018 - IMFnews

Mulvaney Tells MBA: CFPB to Define ‘Abusive’ Under UDAAP; Regulation by Enforcement is Over

CFPB chief Mick Mulvaney declared the regulation-by-enforcement approach done...


October 15, 2018 - Inside the CFPB

Other News in Brief: New Settlement; Senate in Recess; Discriminatory Mortgage Lending Charges; Town Hall Meeting

The CFPB recently settled with Bluestem, Eden Prairie, MN, over allegations that the group of firms unfairly delayed payment transfers to third-party debt buyers. The settlement will require the companies to pay a civil money penalty of $200,000. The CFPB alleged that the Bluestem companies, between 2013 and 2016, delayed forwarding payments for more than 31 days in 18,000 instances. In 3,500 of those instances, Bluestem allegedly delayed [Includes four briefs] ...


October 15, 2018 - Inside the CFPB

Consumer Complaints See Double-Digit Decline in the Third Quarter

Consumer complaints in all major categories saw double-digit declines in the third quarter compared to the second quarter, according to a new analysis by Inside the CFPB. Total gripes filed by the public with the CFPB dropped 11.4 percent from 2Q18 to 3Q18, mainly driven by an 18.9 percent sequential decline in home mortgage complaints. Complaints regarding credit cards dipped 11.4 percent, bank account problems were down 10.8 percent and ...


October 15, 2018 - Inside the CFPB

Waters Seeks to Get the CFPB Back to Obama-Era Operation

Rep. Maxine Waters, D-CA, ranking member of the House Financial Services Committee, introduced a bill to undo changes Acting CFPB Director Mick Mulvaney has made to the agency during his tenure. The legislation has no chance in the current session of Congress, but it would likely get on the fast track if Democrats win control of the House in the upcoming midterm elections. “My bill, the Consumer First Act, would reverse the harmful changes the Trump administration ...


October 15, 2018 - Inside the CFPB

Dems Ask How the Controversial Fair Lending Chief Was Hired

CFPB Acting Director Mick Mulvaney is resisting outside pressure to dump the controversial political appointee who now leads the agency’s fair lending activities. Eric Blankenstein has come under fire for racially tinged blogs he posted in 2004, where he stated that using the n-word may not necessarily be racist and a great majority of hate crimes were hoaxes. Senate Democrats are pushing Mulvaney to explain how Blankenstein was hired to be head of …


October 15, 2018 - Inside the CFPB

CFPB Drops Proposed Changes to Share Confidential Info With States

The CFPB has abandoned a controversial proposal to expand its disclosure of confidential information through Freedom of Information Act requests. Notably, a new final rule omits the whole part of a previous proposal that would have allowed the CFPB to share confidential information collected in supervisory events with any government agency it deems “relevant to the exercise of the agency’s statutory or regulatory authority.” Such agencies would ...


October 15, 2018 - Inside the CFPB

Administration Officials Continue Push for Coordination with States

A top CFPB official last week touted the agency’s strategy on fintech and innovation in financial services as a perfect fit with its emphasis on cooperating with state regulators. Paul Watkins, director of the CFPB’s Office of Innovation, said the bureau is taking unique steps to coordinate with state regulators in creating regulatory sandboxes for financial technology companies. He joined other government officials in making remarks at the Bank Policy Institute’s ...


October 15, 2018 - Inside the CFPB

Mortgage Group Calls for More Clarification for Trial Disclosures

The Mortgage Bankers Association last week suggested the CFPB provide more clarity in the trial disclosure program. The CFPB in September issued a proposed rule to revise its trial disclosure policy. The new policy would reduce the application burden, clarify timing requirements, establish procedures for extending successful trial disclosure programs, and facilitate coordination with state regulators. “The proposed revision of the [trial disclosure program] ...


October 15, 2018 - Inside the CFPB

CFPB Tweaks Ways to Convey Supervisory Findings to Industry

The CFPB recently announced changes in how it communicates with lenders about supervisory events and how it will articulate supervisory expectations to institutions in the future. The bureau plans to continue sending examination reports and supervisory letters to institutions after exams are completed, according to a bulletin. These reports and letters will include two categories of findings: the matters requiring attention (MRAs) and supervisory ...


October 15, 2018 - Inside the CFPB

Industry Seeks Guidance on Market Services Arrangements; Zillow Wins

A recent court ruling that Zillow’s co-marketing program does not violate the Real Estate Settlement Procedures Act is helpful to the industry, but lenders still need guidance from the CFPB to confirm the standards set by previous rulings, said compliance attorneys. Richard Andreano, a partner at Ballad Spahr, told Inside the CFPB that it is positive for lenders that a federal judge dismissed a lawsuit challenging Zillow’s co-marketing program. The bureau itself ...


October 15, 2018 - IMFnews

Short Takes: GSE Pilot Hearing Postponed / An Opportunity to Gather Intelligence? / Freddie's Qualification Tool for Self-Employed Borrowers / GSE Duty-to-Serve Updates / New Hires for ComplianceEase, Element Funding

The Senate Banking Committee's review of GSE pilot programs will have to wait...


October 15, 2018 - IMFnews

Mortgage-Hungry Insurance Conglomerate Hits the Pause Button on M&A as Grand Jury Convenes

Eli Global’s mini-mortgage empire includes lender/servicer Castle & Cooke, wholesaler Western Bancorp, Prime Mortgage and a warehouse lending division called CapLoc…


October 12, 2018 - IMFnews

What We’re Hearing: A Cyclical Business / What Will Treasury’s Craig Phillips Say about the GSEs? / Advice From loanDepot’s Anthony Hsieh / Unsolicited Resumes from Production Employees / Jim Malloy Departs Impac Mortgage After 15 Years / PennyMac’s First CRT Deal / A New Hire at Home Point

Anthony Hsieh's advice for the mortgage industry: Start selling...


October 12, 2018 - IMFnews

Lenders Prepared for TRID 2.0, but Some Uncertainty Remains

“I think everyone is on board,” said Colgate Selden, a former CFPB attorney and now managing director and head of regulation and compliance at Promontory MortgagePath.


October 11, 2018 - Inside Mortgage Finance

Enactment of Dodd-Frank Reform Bill Prompts VA to Dump QM Interim Final Rule for New QM Rulemaking

The Department of Veterans Affairs has spiked an interim final rule on “qualified mortgages” in favor of a new separate rule establishing new QM standards.


October 11, 2018 - IMFnews

Short Takes: Why Stocks Need to Come Down / Unwinding the Massive Tax Cuts / President Hickenlooper? / Capital Alpha Weighs In / Behind the Scenes at Wells Fargo / New Hires for DIMONT

The massive tax cuts the president and GOP bestowed on the nation late last year have spurred economic progress. It’s hard to argue with that, but...


October 10, 2018 - IMFnews

Short Takes: Michael Bright, the Next FHFA Director? / Waiting on Senate Confirmation (Still) / A Former GSE Exec and The Play Set Scandal / Sears and Fairholme / HSBC Settles with DOJ / A New Hire at CMG Financial

HSBC will pay $765 million to settle charges brought by the Department of Justice...


October 10, 2018 - IMFnews

GSEs on Track to Start Issuing Single Security in June, Additional Guidance Pending…

Stephanie Miller of Fannie Mae said the GSEs are working with SIFMA on the transition to the single security.


October 9, 2018 - IMFnews

Short Takes: Castle & Cooke? / The Fannie Mae Connection / Frater, a Good Choice to Head Fannie / LendingHome Surpasses the $3B Mark in FnF Production / NDA Hires Clayton Executive

Fix-and-flip lender LendingHome, San Francisco, has surpassed the $3 billion market in originations...


October 9, 2018 - IMFnews

Senate Still has Time to Enact VA ‘Orphan’ Loan Bill

The House bill is currently at the Senate desk, awaiting nods from Senate Banking Committee Chairman Mike Crapo, and Ranking Minority Member Sherrod Brown…


October 9, 2018 - IMFnews

Fannie Names Former Berkshire Hathaway Executive Hugh Frater Interim CEO

The new interim CEO was an EVP at PNC Financial where he led the real estate division and was a founding partner and managing director of BlackRock...


October 8, 2018 - IMFnews

Short Takes: Waiting on a Client / Layoffs at Eli Global? / Bonuses: Based on Volume or Profits? / New Penn Rolls Out New Non-QM Loan / NewDay Hires a Former Governor

One source familiar with Eli Global’s mortgage operations said layoffs have occurred at the company’s mortgage unit...


October 8, 2018 - IMFnews

Senate Banking Committee Hearing Likely to Touch on Freddie Mac MSR-Financing Pilot

In his report, KBW analyst Bose George said, “While Mel Watt, director of the FHFA, was questioned about some of these issues in past congressional hearings, this will be the first hearing to focus exclusively on this topic.”


October 5, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Issues Waiver of Property Inspections in Disaster-Stricken California Counties. FHA has issued a waiver of its timing policy for completing property inspections prior to closing or endorsing a loan for FHA insurance. The waiver is in effect in presidentially declared major disaster areas in Lake and Shasta Counties, CA, that were ravaged by wildfires and high winds. FHA believes that the wildfires and high winds have stabilized so as not to cause any further damage to properties, even though FEMA has not declared “all clear” in the affected areas. The waiver allows damage inspections to be completed after Oct. 2, for properties located in the PDMDA. NC Commissioner of Banks Amends State Reverse Mortgage Rules. The North Carolina Commissioner of Banks recently amended its ...


October 5, 2018 - Inside FHA/VA Lending

Poor Tracking of Partial Claims Jeopardized Future Collections

Inadequate loan-servicing controls put the Department of Housing and Urban Development at risk of not being able to collect $6 million in partial claim notes, an inspector general audit revealed. The audit found that HUD’s National Servicing Center did not do a good job tracking partial claim notes for future collection. More specifically, NSC did not always enter partial claim notes and lender payments into its tracking system to ensure that note and mortgage documents supported the partial claim notes. The audit was triggered by an earlier IG pre-audit analysis, which found that partial claim notes may not have been properly uploaded in HUD’s Single-Family Mortgage Asset Recovery Technology (SMART) tracking system. HUD data showed there were 407,984 partial claims between Jan. 1, 2013, and Aug. 31, 2017. The department reviewed 695 non-sampled FHA loans with partial ...


October 5, 2018 - Inside FHA/VA Lending

HECM Statute Does Not Disallow Lender’s Legal Right to Foreclose

The federal statute that authorized the Department of Housing and Urban Development to establish the Home Equity Conversion Mortgage program addresses only HUD’s authority to insure reverse mortgages and not the lender’s contractual right to foreclose, the U.S. Court of Appeals for the Eleventh Circuit has ruled. Affirming the district court’s decision in The Estate of Caldwell Jones, Jr., Executrix Vanessa Jones and Leah Grace Jones, Minor v. Live Well Financial Inc., the circuit court determined that the HECM statute did not prevent foreclosure pursuant to a reverse-mortgage contract originated before Aug. 4, 2014, even if the non-borrowing spouse continued to live in the mortgaged property. The question before the court was whether the statute can be read broadly to prevent foreclosure after the borrower’s death and prevent the non-borrowing spouse from being ejected from the ...


October 5, 2018 - Inside FHA/VA Lending

Failure to Record Indemnifications Exposes MMIF to Potential Losses

The Department of Housing and Urban Development’s failure to record indemnifications under a 2015 settlement agreement exposed the FHA insurance fund to potential losses of more than $47.4 million, according to an internal audit report. HUD’s Office of the Inspector General performed the audit to resolve issues related to two settlement agreements entered into by Fifth Third Bank and the Department of Justice. Fifth Third, a direct endorsement lender, had voluntarily disclosed to HUD 1,439 materially defective FHA loans that were originated between 2003 and 2013. HUD paid claims on 519 of those flawed loans, which generated more than $84.9 million in ineligible claims. In addition, FTB agreed to indemnify HUD for all losses for the remaining 920 FHA-insured mortgage loans. In January 2017, the bank voluntarily disclosed an additional 381 materially defective FHA loans. A HUD review of the ...


October 5, 2018 - Inside FHA/VA Lending

HUD Plans to Revisit DPA Rules in Light of Tribal FHA-Down Program

Use of FHA downpayment assistance from programs run by entities owned by Native American tribes may soon be under agency scrutiny. Industry stakeholders are pointing to a pre-rule notice the Department of Housing and Urban Development published last spring as an opportunity for HUD to clarify the use of downpayment assistance from parties other than those currently allowed to meet FHA’s 3.5 percent downpayment requirement. In an advanced notice of proposed rulemaking in the Federal Register, HUD is seeking comment on the use of downpayment assistance as well as their approved sources, such as tribal providers, state and local housing finance agencies, government agents and non-profit organizations. One downpayment-assistance provider is the Chenoa Fund Loan Program, which is owned and operated by the Utah Cedar Band of Paiutes. The fund provides secondary financing to ...


October 5, 2018 - Inside FHA/VA Lending

FHA Insurance Fund Hit Hard by Needless Claim Payments, Costs

Mortgage servicing delays have caused the Department of Housing and Urban Development to pay a whopping $413 million for unnecessary interest and other expenses. The payment put a major dent on the FHA Mutual Mortgage Insurance Fund and its ability to pay other claims or reduce FHA mortgage-insurance premiums, according to a report from the HUD inspector general. The amount covered interest payments and other costs on 27,634 preforeclosure claims over a five-year period. The costly setback could have been avoided had lenders completed servicing chores on defaulted FHA loans within their prescribed periods, the IG said. Although serviers were to blame, HUD reimbursed them through FHA insurance claims. The IG analyzed 100,077 preforeclosure claims paid from Aug. 1, 2012, through July 31, 2017. Auditors identified 30,061 claims that had ...


October 5, 2018 - Inside FHA/VA Lending

FHA Requires Second Appraisal on HECMs with Inflated Collateral

The reverse mortgage industry is supporting an FHA move to require a second appraisal for certain Home Equity Conversion Mortgage loans. FHA did not seek public comment on the interim policy change, which subjects all HECM loans, effective Oct. 1, to a collateral risk assessment to ensure the appraisal of the property is not inflated. The new policy has wide support in the reverse mortgage industry. A study conducted by the Department of Housing and Urban Development last year found that 37 percent of appraisals on approximately 134,000 HECMs tested positive for over-valuation. The inflated HECM appraisals were at least 3 percent higher than estimates by FHA’s proprietary automated valuation model, according to FHA Commissioner Brian Montgomery. The same study also found that higher-than-expected losses in the HECM program could be attributed in part to ...


October 5, 2018 - Inside FHA/VA Lending

Solid Gains in Purchase-Mortgage Business Offset 3Q18 Refi Slump

Ginnie Mae issuance of single-family mortgage-backed securities rode a homebuying wave during the third quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Ginnie issuers produced $105.63 billion of new MBS backed by forward mortgages during the July-September cycle, a 7.1 percent increase from the second quarter. That brought year-to-date production to $296.88 billion – down 11.3 percent from the first nine months of 2017. Purchase mortgages provided the boost for the Ginnie market. Some $75.69 billion of FHA and VA purchase mortgages were pooled in Ginnie MBS in the third quarter, a sturdy 13.1 percent increase from the previous period. Purchase loans accounted for 75.1 percent of FHA and VA loans securitized in the third quarter, compared to 64.7 percent for all of last year. Although production of these loans has gone up since the first quarter, year-to-date volume ... [Charts]


October 5, 2018 - Inside MBS & ABS

MBS/ABS Participants Getting Used to a ‘Constructive’ Relationship with Regulators in Trump Administration

Federal regulators have changed their tone under President Trump, according to participants in the MBS and ABS markets.


October 5, 2018 - IMFnews

MBS/ABS Participants Getting Used to a ‘Constructive’ Relationship with Regulators in the Trump Administration

Federal regulators have changed their tone under President Trump, according to participants in the MBS and ABS markets.


October 5, 2018 - IMFnews

Warehouse Banks Ponder MSR Financing – But There’s Freddie Mac to Worry About

This executive, like many interviewed, called it an example of charter creep. Freddie and the FHFA think otherwise…


October 4, 2018 - Inside Mortgage Finance

CFPB Appears to Favor Supervision Over Enforcement in Fair Lending as Controversy Swirls Around Key Official

Observers say the Consumer Financial Protection Bureau has changed its approach in fighting against lending discrimination under a new fair lending chief who has recently drawn heavy criticism for his controversial comments. “In the recent past, [the CFPB is] probably more supervision-oriented than enforcement action-oriented,” said Marshall Bell, a partner at Buckley Sandler, who advises companies on fair lending enforcement actions by the CFPB. “There has been a greater ...


October 4, 2018 - Inside Mortgage Finance

Mortgage Industry Waiting for Guidance on Implementation of Dodd-Frank Reforms

The industry is still waiting for guidance on how mortgage-related rules were changed by the Dodd-Frank regulatory relief bill, even though most provisions took effect immediately when the bill was signed into law in May. A number of requirements were changed in regard to smaller financial institutions by the Economic Growth, Regulatory Relief, and Consumer Protection Act, including the qualified-mortgage standard. However, the industry is still awaiting guidance from the Consumer Financial ...


October 4, 2018 - IMFnews

Short Takes: Freddie the Final Takeout on SFR Deal / Helping Reven / Gateway Mortgage Recruiting / Sen. Warren Questions Mulvaney’s Role in Fundraiser / A Promotion at Fannie Mae

Gateway Mortgage of Oklahoma is in a hiring mode these days...


October 4, 2018 - IMFnews

Eli Global Founder the Subject of Federal Subpoenas. A Mortgage M&A Deal was in Progress

As press time, Lindberg’s spokesman, Chuck Norman of S&A Communications, had not returned several emails and telephone calls regarding the subpoenas.


October 4, 2018 - IMFnews

SFR REIT Reven Inks $51.3 Million LOC from Arbor

A few months back, the Federal Housing Finance Agency ordered Fannie Me and Freddie to end their involvement in SFR financial arrangements. However, any deals in progress were allowed to close...


Poll

Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.

35%

The wholesale/table funder. They’re taking the financial risk.

30%

The broker, but only for the first year. After that, the borrower is fair game.

13%

Hard to answer. It’s a complicated issue.

22%