Regulations

Browse articles from all of our Newsletters related to Regulations.

August 17, 2018 - IMFnews

What We’re Hearing: Two Giants May Change Hands (Or Maybe Not) / Job Cuts at Ditech / Can HL Sell Ditech Fast Enough? / Tom Marano’s Experience with Troubled Shops / CALCAP Bullish on Fix-and-Flip / A Confidential GSE File On…

It might be in Ditech’s best interest if Houlihan Lokey finds a buyer now while MSR values are still peaking…


August 17, 2018 - IMFnews

With GSE Single Security Launch Less Than a Year Away, TBA Eligibility Uncertain

Some key regulatory concerns remain unresolved or unclarified, according to SIFMA…


August 17, 2018 - Inside MBS & ABS

With Single Security Launch Less than a Year Away, TBA Eligibility Is Still Up in the Air

Fannie Mae and Freddie Mac appear to be on track for a June 2019 launch of the new uniform MBS, but the Securities Industry and Financial Markets Association has yet to issue a formal declaration on to-be-announced eligibility for UMBS.


August 16, 2018 - Inside Mortgage Finance

State Agencies to Tighten Mortgage Servicing Rules, But CFPB May Not Scale Back Its Enforcement

Some states are gearing up to tighten their regulation of mortgage servicers to pick up the slack from a perceived pullback by federal regulators, although attorneys said the Consumer Financial Protection Bureau is still enforcing its servicing regulation.


August 16, 2018 - IMFnews

Bankers Ask for TRID Exemption on Single-Family Construction Loans

Bankers argue that single-family construction loans should be exempt from TRID because they are temporary and cover construction activity…


August 16, 2018 - IMFnews

States Tighten Servicing Rules, but CFPB Still a Factor

There’s a perception the CFPB will take fewer enforcement actions under the leadership of Mick Mulvaney, but industry attorneys question whether there has been any pullback…


August 15, 2018 - IMFnews

The Fannie Mae Mystery Executive in the Heavily Redacted FHFA IG Report: CEO Timothy Mayopoulos

On July 23rd, Fannie announced Mayopoulos would depart as CEO before yearend. The heavily redacted FHFA IG report is dated July 26.


August 15, 2018 - IMFnews

RBS Agrees to Pay DOJ $4.9 Billion to Settle MBS Fraud Charges

Among those subprime MBS investors: Fannie Mae and Freddie Mac.


August 14, 2018 - IMFnews

RBS Agrees to Pay DOJ $4.9 Billion to Settle MBS Fraud Charges

Overall, RBS underwrote $261.1 billion of subprime securities during the go-go years...


August 14, 2018 - IMFnews

Cowen Sees Political Turmoil Whipsawing the Financial Services Landscape. Servicers Should Brace for Action

Cowen: “We would expect enforcement to return with Democratic control and wane with GOP control.”


August 14, 2018 - IMFnews

VA Doesn’t Like Bill that Would Increase Costs on Vet Home Loans

Both the VA and residential originators believe the fee increase would be used to cover expanded health-care benefits…


August 10, 2018 - Inside FHA/VA Lending

Senate Passes FY 2019 T-HUD Bill, Preserves Previous Funding Levels

On Aug. 1, the U.S. Senate voted 92-6 to pass a four-bill appropriations package that includes FY 2019 funding for the Department of Housing and Urban Development and the U.S. Department of Agriculture housing programs. The bill passed without changes to program funding levels previously approved by Senate appropriators. The House Appropriations Committee has approved FY19 spending bills for both HUD and USDA. The full House, which is away for the summer break until Sept. 4, has not yet voted on the package. The Senate bill retains the previous fiscal year’s $400 billion in new loan commitments in the FHA Mutual Mortgage Insurance Fund and $30 billion for the general insurance and special risk insurance program, which include special purpose single- and multifamily loans, multifamily rental housing and condominiums. The bill also sets aside $550 billion for Ginnie Mae ...


August 10, 2018 - Inside FHA/VA Lending

Treasury Urges HUD to Clarify FCA Materiality, Severity of Violations

A Treasury Department report called on the Department of Housing and Urban Development to establish clear standards for determining which mortgage-related violations and loan defects the Department of Justice should pursue under the False Claims Act. The report also recommended that DOJ ensure that materiality, for purposes of the FCA, is linked to the standards of the agency administering the program to which the claim has been filed. Furthermore, it urged both HUD and the DOJ to work together to clarify the process by which they can jointly resolve claims. The report was issued pursuant to President Trump’s February 2017 executive order establishing his administration’s policy to regulate the U.S. financial system according to a set of core principles. Both HUD and the DOJ have been successful in using the statute to prosecute FHA lenders who knowingly commit fraud or make ...


August 10, 2018 - Inside FHA/VA Lending

MBA Urges Congress to Fix Problem of ‘Orphaned’ VA Mortgage Loans

The Mortgage Bankers Association called upon Congress to pass legislation to restore Ginnie Mae eligibility for so-called orphaned VA loans, which have caused a temporary disruption in the government-backed secondary market. In written testimony to the Senate Committee on Veterans’ Affairs last week, the MBA urged lawmakers to make technical corrections to restore the eligibility of certain Interest Rate Reduction Refinance Loans for pooling. The MBA estimated the VA orphan loan mess at roughly $500 million. Due to new loan seasoning requirements in the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, sime IRRRLs were rendered ineligible for Ginnie MBS pools. The loans were in transit when legislation addressing the problem of VA loan churning and serial refinancing became law in May. The new law’s seasoning provisions turned out to be ...


August 10, 2018 - Inside FHA/VA Lending

AI Objects to Appraisal Provisions in H.R. 299, Calls for Revisions

The appraisal industry is opposed to a legislative proposal that would make changes to how appraisals are procured for the VA home loan program. The appraisal measure is one of the key provisions in H.R. 299, the Blue Water Navy Vietnam Veterans Act, which the House of Representatives passed by a vote of 382-0 in June. The bill is now pending in the Senate Committee on Veterans’ Affairs. The Blue Water Act would clarify presumptions relating to veterans’ exposure to herbicide, such as Agent Orange, during the Vietnam era and disability claims. The bill also proposes changes to the VA loan fee structure, including a proposed hike to the fees veterans, servicemembers and their spouses pay to obtain a VA-guaranteed home loan. The appraisal provision in H.R. 299 would allow VA appraisers to engage a third party to perform property inspections on their behalf. The provision addresses a problem with ...


August 10, 2018 - IMFnews

GSE Shareholders Propose New Theory in their Legal Challenge: the FHFA is Unconstitutional

Legal argument: If the FHFA is unconstitutional, then the net worth profit sweep must be…


August 9, 2018 - IMFnews

House Subcommittee Plans Hearing on ‘Waste, Fraud and Abuse’ Allegations at the FHFA. The GSEs?

There was no mention of Freddie Mac’s CEO, Don Layton.


August 9, 2018 - Inside Mortgage Finance

A Flurry of CFPB Enforcement Settlements Suggests Some Change in Approach But Lenders Can’t Relax

After a brief hiatus while new management took over, the Consumer Financial Protection Bureau recently has resumed taking enforcement actions. Attorneys said the settlements look similar to those under the prior leadership, but the enforcement strategy is different.


August 9, 2018 - Inside Mortgage Finance

Marketing Services Agreements Back Again After Court Ruling Reestablished RESPA Safe Harbor

After federal courts overturned the Consumer Financial Protection Bureau’s aggressive interpretation of the anti-kickback provisions in the Real Estate Settlement Procedures Act, lenders are more confident about forging marketing services agreements, industry experts said.


August 9, 2018 - IMFnews

They’re Back: Marketing Services Agreements (Not That They Ever Totally Went Away)

There’s been a resurgence of MSAs among other settlement service providers…


August 8, 2018 - IMFnews

Short Takes: Brother, Can You Spare $77.6 Billion? / If Things Get Rough, This is How Much Money I Might Need / Define ‘Severely Adverse’ Scenario / The Wells Fargo Mortgage Layoff Tally for July / Fannie Director Departs

But the bailout calculations – mandated under the Dodd-Frank Act Stress Tests – were not done by the FHFA.


August 8, 2018 - IMFnews

Industry Seeks Update from Banking Regulators on Basel, Tier I Capital and MSRs

At the very least, the MBA wants a timeframe from the regulators…


August 8, 2018 - IMFnews

CFPB Active Again in Enforcement Actions. 23 Cases Being Litigated

A spokesperson told Inside the CFPB the agency’s office of enforcement is now “actively litigating 23 cases.”


August 7, 2018 - IMFnews

Short Takes: R-E-S-P-E-C-T is What loanDepot CEO has for Zillow / Houlihan Lokey Advised Zillow / Shellpoint Shines / MBA Likes the Sandbox / A Handful of Promotions at PRM

Anthony Hsieh of loanDepot: “Relax everyone. Competition is good."


August 7, 2018 - IMFnews

Lobbying on the GSE Issue Moves from Congress to the Executive Branch

Earlier this year, Treasury Secretary Steven Mnuchin told the Senate Banking Committee he has the authority to restructure Fannie and Freddie without any change in law.


August 7, 2018 - IMFnews

House Financial Services Committee Passes Bill Revising Points and Fees

The revised definition excludes from points and fees any compensation included in the interest rate and for which the consumer was separately charged.


August 6, 2018 - Inside the CFPB

Other News in Brief: House Bill on Credit Card Disclosures; RFI Roundtables; CFPB Poll

House Bill Would Strengthen Online Credit Card Disclosures. Rep. David Price, D-NC, recently introduced the Online Credit Card Disclosure Act, legislation which would require credit card companies to inform consumers about the risks associated with minimum debt payments by regularly publishing clear, personalized pay-down disclosures online, including websites and mobile apps. “As more and more Americans handle their financial affairs [Includes three briefs] ...


August 6, 2018 - Inside the CFPB

CFPB’s Fintech Sandbox Could Benefit Non-QMs, But More to Do

The CFPB recently announced plans to create a “regulatory sandbox” to encourage consumer-friendly innovation in financial services. The mortgage industry sees it as an opportunity to enhance the emerging niche of loans that fall outside the qualified mortgage standard. “I’m optimistic,” said Justin Wiseman, an associate vice president at the Mortgage Bankers Association. “I think [the plan is] broadly beneficial across the mortgage market … one area that might ...


August 6, 2018 - Inside the CFPB

Fed Warns About Fair Lending Risks, Giving Suggestions

The Federal Reserve Board recently reminded banks that redlining remains a compliance concern for the central bank. Redlining is a form of illegal discrimination in which a financial services institution provides unequal access to credit in certain markets based on the race, color or national origin of its residents. The CFPB in the past has brought several public enforcement actions for redlining. The Fed released its Consumer Compliance Supervision Bulletin ...


August 6, 2018 - Inside the CFPB

Nonprofits Ask For Investigation Into Mulvaney’s Payday Lender Ties

Two public interest groups recently asked the CFPB’s inspector general to open an investigation into Acting Director Mick Mulvaney’s relationship with the payday lending industry. Americans for Financial Reform and Change to Win requested the IG, Mark Bialek, investigate whether Mulvaney has violated ethics regulations governing the conduct of executive branch employees by giving preferential treatment to the payday lending industry. Americans for Financial Reform ...


August 6, 2018 - Inside the CFPB

Bankers Ask For TRID Exemption of Single-Family Construction Loans

Mortgage lenders want the CFPB to exempt single-family residential construction loans from the Real Estate Settlement Procedures Act / Truth in Lending Act Integrated Disclosure Rule. The TRID rule implemented by former Director Richard Cordray expressly applies to most construction loans that are secured, closed-end consumer credit transactions. Such loans are subject to the same extensive cost and term TRID disclosures as permanent purchase ...


August 6, 2018 - Inside the CFPB

Consumer Advocacy Group Sues CFPB for Kraninger’s Records

A progressive group recently filed a lawsuit against the CFPB and the Office of Management and Budget for allegedly failing to provide records on Kathy Kraninger, President Trump’s nominee to become the next director of the CFPB. Allied Progress, a consumer watchdog, said in the lawsuit that it is suing to compel the agencies to respond to Freedom of Information Act requests for records associated with Kraninger. The lawsuit was filed in the U.S. District Court ...


August 6, 2018 - Inside the CFPB

A New Strike: CFPB Loses Lawsuit Against Debt Collection Law Firm

A federal judge in Ohio recently sided with a law firm in a debt collection enforcement action taken by the CFPB. Industry attorneys said the ruling calls into question whether the bureau should bring future actions against such firms. The CFPB filed a lawsuit in April 2017 against the debt collection law firm Weltman, Weinberg & Reis for falsely representing in collection letters sent to consumers that attorneys were involved in collecting the debt. In most cases ...


August 6, 2018 - Inside the CFPB

House Committee Passes a Bill Revising ‘Points and Fees’

The House Financial Services Committee recently cleared a bill that would change the definition of “points and fees” for the qualified-mortgage standard under the Truth in Lending Act. Introduced by Rep. Bill Posey, R-FL, the Mortgage Fairness Act of 2017, H.R. 2570, revises points and fees when determining whether a loan is a “high-cost mortgage.” The bill passed through the committee on a 34-22 vote. The revised definition excludes from points and fees ...


August 6, 2018 - Inside the CFPB

Treasury Recommends CFPB Abandon Payday Lending Rule

The U.S. Treasury Department in a recent report urged the CFPB to rescind its payday lending rule because the states already have regulatory structures in place for the industry. “Treasury recognizes and supports the broad authority of states that have established comprehensive product restrictions and licensing requirements on nonbank short-term, small-dollar installment lenders and their products,” said the agency’s long-awaited report on fintech that was ...


August 6, 2018 - Inside the CFPB

Kraninger Agrees With Mulvaney’s Moves at CFPB, Vote Pending

Kathy Kraninger, President Trump’s nominee to be the next CFPB director, last week responded to questions sent by Democrat members of the Senate Committee on Banking, Housing, and Urban Affairs. The questions followed on the heels of a confirmation hearing earlier in July where Democrats accused the nominee of stonewalling. The Democratic lawmakers sent three lists of questions, over 10 pages, covering issues ranging from the nominee’s day-to-day job ...


August 6, 2018 - Inside the CFPB

CFPB Active Again in Enforcement Actions, But With New Tactics

The CFPB has been accelerating its enforcement actions in the past two months, and attorneys said Acting CFPB Director Mick Mulvaney is now defending the bureau’s enforcement power, with a new strategy and focus. “The enforcement actions are being announced more frequently now,” said Allen Denson, partner at Hudson Cook. “I expect the steady clip of settlements we’ve seen over the last two months to continue.” After Mulvaney took the reins at the ...


August 6, 2018 - IMFnews

Short Takes: Moving up the Search? / FHFA Watchdog Under Investigation? / No One is Commenting – or Denying / Politically Motivated? / Mangiaracina Gets Chairman’s Slot

As of Monday morning, none of the parties involved – FHFA, the FHFA IG, and the Council – were commenting to IMFnews. Nor were they denying the existence of an investigation.


August 6, 2018 - IMFnews

Wells Fargo Says It’s ‘Very Sorry’ About Calculation Error that Led to Foreclosures

Wells Fargo: “As a result of this error, approximately 625 customers were incorrectly denied a loan modification..."


August 6, 2018 - IMFnews

Treasury Gives Blessing to GSE Appraisal Waivers, More. But Moody’s Worries About AVMs

The Treasury report acknowledges concerns from the appraisal industry but touts the benefits of using the waivers…


August 3, 2018 - Inside The GSEs

GSE Roundup

Capital Proposed Rule Comment Period Extended to November. The Federal Housing Finance Agency announced this week that it is extending the public comment period for the agency's proposed rule on Enterprise Capital Requirements by an additional 60 days. The previous deadline for comments was Sept. 17, 2018. The new deadline will be Nov. 16, 2018. FHFA extended the public comment period “due to the high level of interest in the proposed rule and requests from multiple stakeholders for more time to evaluate it.” GSE shareholders group Investors Unite, said, “However complex capital standards are, professionals who dwell in this policy area every day should be able to offer their views within a three-month window.”


August 3, 2018 - IMFnews

What We’re Hearing: Fannie Mae’s Next CEO Might Be… / Thanks Congress / Amazon Still in the Hunt? / The Top Gainer: Fairway Independent Mortgage / Talking to Ed DeMarco / Gateway Gets a New CEO

No wonder why Fannie and Freddie topped Business Insider’s list of the most profitable companies per employee…


August 2, 2018 - Inside Mortgage Finance

MBA Urges Federal Banking Regulators to Finalize Rules Raising the Cap on MSRs that May Count Towards Tier 1

The Mortgage Bankers Association recently asked the federal banking agencies to provide an update on a proposal to increase the amount of mortgage servicing assets that a bank may count to-wards Tier 1 capital. In a letter to the Office of the Comptroller of the Currency, Federal Deposit Insurance Corp. and the Federal Reserve, the MBA reiterated its support for the agencies’ proposal to raise a recommended 25 percent cap on the amount of mortgage servicing assets that may be ...


August 2, 2018 - Inside Mortgage Finance

Treasury Backs Major Tech Development for Mortgage Industry, Clarity on FCA Claims

The U.S. Treasury Department this week called for a major technology push in financial markets that includes big upgrades in government mortgage-insurance programs. While most of the proposals could be accomplished by the agencies themselves, they also require funding from Congress. A new Treasury report backed Trump administration proposals to fund FHA technology up-grades, some of which could be used to expand digitalization of loan files. Funding legislation on ...


August 3, 2018 - IMFnews

An Early Departure by FHFA Director Watt Could Hasten Changes in the Secondary Market

The White House has reportedly assembled a dedicated team to find a successor to Watt, believing an early departure is a possibility…


August 2, 2018 - IMFnews

Short Takes: Roll Up Those GSE Wheelbarrows Full of Cash / Kraninger and Bright Will Have to Wait / Mulvaney and the GSEs? / Rep. Waters has Fintech Worries / Better Mortgage, Better Volumes

Rep. Maxine Waters, D-CA, is none too thrilled with plans by the Treasury Department and Comptroller of the Currency to open up federal banking charters to fintech firms.


August 2, 2018 - IMFnews

Senate Lawmakers Consider Proposal to Increase VA Home Loan Fees

It's unclear whether the proposed increase in VA home loan fees would be used to fund an expected increase in veteran health-care costs…


August 2, 2018 - IMFnews

Wells Pays $2 Billion Penalty to Feds for Disclosure Issues on Pre-Crisis Non-Agency MBS

In settling, Wells – the nation’s largest home lender and servicer – did not admit any liability.


August 1, 2018 - IMFnews

Short Takes: Treasury Department Makes Recommendations on the FCA / A Strong Showing by Arch MI / Synergy One Looks to Add Loan Officers / Under a GOP FHFA Director, the Conservatorships Will End / Churchill Mortgage Names Regional Managers

A prediction: “Watch for an end to the GSE conservatorships under a Republican Director at the FHFA...


August 1, 2018 - IMFnews

New Report: Over Half of Flawed FHA Loans Were Cured

Roughly 59.8 percent of the reviewed loans were initially deemed unacceptable.


Poll

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.

17%

11% to 25%. It’s a challenging market.

48%

25% to 40%. It’s going to be very ugly.

24%

No opinion.

11%