Regulations

Browse articles from all of our Newsletters related to Regulations.

June 20, 2018 - IMFnews

Short Takes: Wholesale Profit Margins Under Pressure Too? / Commercial Bank Seeks MB / A New IO MBS from JPM / An Update on Ex-FGMC CEO Peters / New Hires for Two Harbors, Walker & Dunlop

All of the loans in the new JPM deal were originated by First Republic Bank, with seasoning of seven years...


June 20, 2018 - IMFnews

Cowen: FHFA Chief Watt Won’t Act on a Capital Restoration Plan for the GSEs. However, Team Trump Might

But Cowen also offers up a ray of hope to GSE “recap and release” backers…


June 19, 2018 - IMFnews

Short Takes: Sen. Warren Will Block CFPB Nominee / Midwestern Humility / Yet More Regulations Proposed for Home Servicers / If Maxine Waters Becomes Chairman… / The GSEs, More Dominant Than Ever?

Sen. Elizabeth Warren: "Now Donald Trump wants her to run the CFPB. I will put a hold on her nomination – and fight it at every step – until she turns over all documents..."


June 19, 2018 - IMFnews

Ginnie Rolls Out New Metric for Monitoring Issuer Performance

The announcement follows recent administrative actions against three VA lenders that were penalized for cherry picking and refinancing unseasoned loans…


June 19, 2018 - IMFnews

Nine Groups Want Fannie and Freddie to Have a Regulatory-Mandated Capital Restoration Plan

Consultant Joshua Rosner of Graham-Fisher said the letter is significant because it marks the first time that the ICBA has joined with civil rights groups and housing organizations on a GSE-related matter.


June 18, 2018 - IMFnews

Short Takes: CFPB Nominee’s LinkedIn Profile / Kraninger is a Radical Pick for Trump – She’s a Career Bureaucrat / The Thumb’s Up from Hensarling / FTC Action Against CoreLogic / A SC Branch for Mortgage Network

Rep. Jeb Hensarling: "I’m confident that, under Kathy’s leadership, gone are the days of wasting more than $240 million of taxpayer money to renovate a building it doesn’t even own and paying staff to perform research that has nothing to do with the Bureau’s mission..."


June 18, 2018 - IMFnews

Should the FHFA Set Operational Standards for Mortgage Servicers? Rep. Waters Readies Bill

Mortgage servicers believe they already face intense regulatory scrutiny...


June 18, 2018 - IMFnews

Trump Picks Career Government Official to Head the CFPB. A Way to Keep Mulvaney in Charge?

Cowen: “We see the nomination of Kathy Kraninger as a way to keep OMB Director Mick Mulvaney in charge of the Consumer Financial Protection Bureau for years to come..."


June 18, 2018 - IMFnews

More Commercial Banks Bidding on Mortgage Servicing Rights. Changes to Basel III a Factor?

Ed Robinson, senior vice president in charge of mortgage banking for Fifth Third, told Inside Mortgage Finance his bank made a conscious decision to jump into the MSR acquisition arena…


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 15, 2018 - Inside FHA/VA Lending

Guidance Sought on Whether ‘Dreamers’ Qualify for FHA Loan

One policy issue that could land on FHA Commissioner Brian Montgomery’s desk soon is whether potential borrowers who were granted temporary status under the Obama-era Deferred Action for Childhood Arrivals are eligible for FHA-insured loans. Mortgage lenders are divided on the issue and may soon ask the newly installed head of the FHA for guidance, said Brian Chappelle, a mortgage industry consultant. President Obama created the DACA program in 2012 to allow undocumented immigrant children to stay temporarily in the U.S. for two years without fear of deportation. They have an opportunity to renew their DACA status towards the end of their second year. To qualify for DACA, the undocumented child must have arrived in the country before they were 16 years old or be younger than 31 on June 15, 2012. They must have lived continuously in the country since June 2007. A person protected under DACA is ...


June 15, 2018 - Inside FHA/VA Lending

Bill Introduced to Address Issues Raised by DOJ Use of FCA, FIRREA

Bipartisan legislation was introduced recently in the House to addresse problems arising from the use of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act in the context of mortgage insurance claims. Co-sponsored by Reps. Josh Gottheimer, D-NJ, and Lee Zeldin, R-NY, the bill would provide certain restrictions and clarifications on false claims and civil actions related to loans with FHA, VA or U.S. Department of Agriculture guarantee. H.R. 5993, the Fixing Access to Credit Act of 2018, has been sent to the House Financial Services Committee and to the House Committee on the Judiciary. A Civil War statute, FCA seeks to deter fraud against the government by providing hefty penalties for violations and establishing a 10-year statute of limitations to file civil claims. Enacted in the wake of the savings and loan debacle in the 1980s, FIRREA outlawed abusive lending and ...


June 15, 2018 - Inside FHA/VA Lending

VA Clarifies Lender Certification Required on All VA-Backed Loans

All home loans with a VA guarantee, including Interest Rate Reduction Refinance Loans, require a lender’s certification, according to the Department of Veterans Affairs. In recent guidance, the agency clarified that the lender certification requirement applies to all VA-backed loans, and is not contingent upon the type of VA loan. Jeff London, director of the VA Loan Guaranty Service, said there have been inquiries from lenders and the VA regional loan centers regarding the validity of the lender certification on an IRRRL. The lender certification is required on IRRRLs, whether or not underwriting is required, London clarified. Under VA rules, lenders must certify that the VA loans they originate comply fully with the law and meet VA’s underwriting standards. The IRRRL is a streamlined program that requires very little verification yet allows veterans to refinance at a lower rate based on their ...


June 15, 2018 - Inside FHA/VA Lending

Reverse-Mortgage Lenders Seek Backend Changes in HECM Rules

Now that Housing and Urban Development Secretary Ben Carson has sworn in a new FHA commissioner, reverse mortgage lenders are hoping to see some changes in the Home Equity Conversion Mortgage program. The National Reverse Mortgage Lenders Association is planning to ask FHA Commissioner Brian Montgomery for changes in the HECM program, particularly at the back end, to make it more profitable for lenders. Peter Bell, the group’s chief executive officer, believes there are opportunities to reduce the cost of the HECM program to the FHA fund by having better servicing procedures. “We would like to see certain loss mitigation procedures in the new HECM rules to be made available to all reverse-mortgage loans,” he said. Some of those procedures apply only to loans originated on or after the new rules became effective, such as “cash for keys.” Cash for keys is a cash offer by a lender to a ...


June 15, 2018 - Inside FHA/VA Lending

HECM Originations Rise in 1Q18, Draw Cut Slows HMBS Issuance

Reverse mortgage lenders started out strong in the first three month of 2018 with a 19.2 percent increase in Home Equity Conversion Mortgage production from the previous period. HECM endorsements totaled $5.4 billion in the first quarter, with purchase reverse loans accounting for the bulk of originations, 81.9 percent. First quarter production was up 18.5 percent from the same period last year. Meanwhile, HECM mortgage-backed securities issuance totaled $2.97 billion for the quarter, down from $3.25 billion in the prior quarter, Ginnie Mae data showed. The top five HECM originators in sequential order – American Advisors Group, Reverse Mortgage Funding, One Reverse Mortgage, Liberty Home Equity Solutions, and Synergy One Lending – accounted for $1.66 billion, or 30.8 percent, of total production during the first quarter. American Advisors maintained its top ranking with $841.4 million of HECM loans, which ... [Charts]


June 15, 2018 - Inside FHA/VA Lending

Ginnie Announces New Metric for Monitoring Issuer Performance

Ginnie Mae has added a new metric to make it easier for approved issuers to track the prepayment rates of single-family loans underlying they have delivered into mortgage-backed securities. The new prepayment metric would enhance Ginnie’s Issuer Operational Performance Profile (IOPP) tool, which was launched in 2015 to help issuers measure their performance against the agency’s standards. The new tool is the latest move by Ginnie to ensure the integrity and market predictability of Ginnie MBS. The prepayment tool will be available to lenders beginning June 25. The announcement follows an agency administrative action last week against three VA lenders that were penalized for cherry picking and refinancing unseasoned VA loans not to benefit borrowers but to charge them higher fees. The lenders – Freedom Mortgage, SunWest Mortgage Co. and NewDay USA – were among nine issuers that ...


June 15, 2018 - IMFnews

What We’re Hearing: There Goes the GSE Footprint / MBA Chief Tackles GSE Stock Speculators / Underwater: Pershing Square / Fannie-Freddie Charter Creep or are They Just Helping the Little Guy? / New Hires for TCF

It’s official: The Treasury Department’s goal is to reduce the footprint of Fannie Mae and Freddie Mac. Who says so? Treasury counselor Craig Phillips...


June 15, 2018 - IMFnews

CFPB Doesn’t Have to Make Complaints Public. However…

The CFPB is considering cutting off public access to the complaint database, which was launched in 2012 under former Director Richard Cordray.


June 15, 2018 - IMFnews

Flagstar Increases Due Diligence Sample Size with Latest Prime Non-Agency MBS

Some rating services have concerns that a 20.0 percent due diligence sample rate is too low…


June 14, 2018 - Inside Mortgage Finance

SFIG Supports House Bill that Would Ease Concern over DOJ’s Aggressive Use of FCA, FIRREA

The Structured Finance Industry Group has expressed support for bipartisan legislation that would resolve problems arising from the government’s use of the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act in the context of mortgage insurance claims stemming from the financial crisis.


June 14, 2018 - IMFnews

Short Takes: FHFA Ignoring HERA? / A Refresher Course / How Fannie and Freddie Dismantled Legislative Bomb Threats / A Large RPL Auction from Fannie / OCC to Finally Weigh In on Fintech

It might be said that OFHEO was a weak federal regulator...


June 13, 2018 - IMFnews

Short Takes: Budget Cuts at the CFPB? / BCFP not CFPB / Sounding the Alarm on U.S. Debt / A Flow Servicing Platform Run by the GSEs / A New Hire for United Fidelity

Do federal deficits even matter anymore? Jeff Gundlach thinks so...


June 13, 2018 - IMFnews

Merrill Lynch Faulted by SEC for Non-Agency MBS Trading Practices from 2009 through 2012

In settling with the SEC, Merrill Lynch did not admit or deny the findings…


June 13, 2018 - IMFnews

CFPB to Tailor Enforcement Based on Scale and Intent of Violations

Mick Mulvaney: “If you are doing something less than one-tenth of 1 percent of the time, maybe it’s evidence of a lack of criminal intent…”


June 12, 2018 - IMFnews

Short Takes: No Relief in Sight for GSE Common / Pershing Square in a World of (GSE) Hurt? / JMP Likes Impac / Consumer Data Collection Returns to the CFPB / Plaza Home Promotes Fontaine

JMP likes the higher profit margins that accompany non-QM lending…


June 12, 2018 - IMFnews

FHFA Proposes Minimum Capital Requirements for Fannie and Freddie. An RBC ‘Bill’ of $181 Billion

By comparison, commercial banks must have tier 1 capital of 8.0 percent of risk-weighted assets.


June 11, 2018 - Inside the CFPB

Other News in Brief: Complaint Database; Town Hall Meeting; Permanent Director

Democratic State AGs Urge CFPB to Retain Public Access to Consumer Complaint Database. A coalition of 15 state attorneys general, led by New York AG Barbara Underwood, sent a joint letter to the CFPB, urging the bureau to retain its public database of consumer complaints. In the letter, the AGs said a public consumer complaint database is consistent with the CFPB’s statutory mandate in the Dodd-Frank Act, The law requires the agency to [Includes three briefs] ...


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

Democrats Stress Data in CFPB Rulemaking; Lenders Want Clarity

Democratic lawmakers sent comment letters to the CFPB in response to its request for information regarding the bureau’s rulemaking processes, emphasizing the importance of data collection in making new rules. Sens. Elizabeth Warren, MA, and Mark Warner, VA, wrote in a comment letter to Acting Director Mick Mulvaney that data collection is essential to rulemaking at the CFPB. “The CFPB’s decision-making is at its best when it has data to guide the ...


June 11, 2018 - Inside the CFPB

CFPB Issues a Different Complaint Report on Agency’s Debt Collection

The CFPB issued its first complaint report since Mick Mulvaney was appointed acting director. The report differs from the monthly complaint reports issued under former Director Richard Cordray. The bureau in late May released a complaint snapshot on debt collection. It provides complaint data as of April 1, 2018. The last monthly complaint report was released in October 2017 before Cordray left. One significant change in the new report is that it does not include complaint volume ...


June 11, 2018 - Inside the CFPB

Organizational Changes to CFPB Might Have Profound Impact

Mick Mulvaney has made many significant changes at the CFPB since President Trump named him acting director of the agency in November. Attorneys said the organizational changes may have the most profound impact. Mulvaney was not a fan of the consumer bureau, which he called a joke “in a sick, sad way.” Six months into his interim tenure, he was doing everything he could to change the consumer agency both structurally and operationally, in how it makes ...


June 11, 2018 - Inside the CFPB

CFPB to Tailor Enforcement Based On Scale and Intent of Violations

Going forward, the CFPB plans to consider the scale and frequency of violations when determining future enforcement actions, Acting Director Mick Mulvaney said. In remarks at a public policy luncheon hosted by Women in Housing and Finance, a professional group, Mulvaney said the consumer agency will decide whether the violations are systematic or intentional when determining potential actions against companies under its jurisdiction. For example, 12,000 violations ...


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, Payday-Lending Groups Seek Rule Delay and Suit Stay

The CFPB and two payday-lending trade groups filed a joint motion seeking a stay of a lawsuit challenging the CFPB payday-lending rule, and to delay the compliance date set by the rule. The lawsuit at issue was filed by the Community Financial Services Association of America and Consumer Services Alliance of Texas in April in a Texas federal district court. The two groups alleged that the consumer agency’s payday-lending rule is unlawful because ...


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 11, 2018 - IMFnews

Short Takes: Celebrity Wants to be a Player in Mortgage M&A / Commercial Bank Seeks Mortgage Company / Garrett on LO Pay / Genworth Sale Clears a Hurdle / Wells Fargo LO Bolts for Nonbank

Consultant Joe Garrett: "Salesmen don’t get paid less just because the company didn’t do well..."


June 11, 2018 - IMFnews

MBS and ABS Issuers Taking Steps to Address Move Away from LIBOR

The banks that report rates that form the basis of LIBOR won’t be required to participate in the survey after 2021…


June 11, 2018 - IMFnews

American Action Forum: Merge the GSEs into HUD. (You Heard that Right)

The AAF warns against the GSEs becoming private entities again, noting there’s no way for them to raise enough capital…


June 8, 2018 - IMFnews

What We’re Hearing: Time to Enter the Non-QM Market? / LoanScorecard is Bullish on the Sector / Citadel and AO Keep Humming Along / FTC Wants to Know More About How the RE Brokerage Industry Works / A Bunch of ‘Yes Men’ on the CFPB Advisory Board? / Mulvaney, Disruptor (And Loving It)

To conservatives in the financial services industry, Mick Mulvaney is a hero.


June 8, 2018 - IMFnews

Don’t Worry, Nothing Will Derail the GSE Single-Security Project

Treasury counselor Craig Phillips advised meeting participants to assure their bosses and government affairs offices that Treasury is fully committed to the project. “If you have problems, tell them to call me,” he quipped.


June 7, 2018 - IMFnews

CFPB, Freddie Mac Separately Urge Mortgage Borrowers to Shop Around

A significant share of borrowers are missing out on thousands of dollars in savings…


June 7, 2018 - IMFnews

MBA Board Picks Veteran Mortgage Banker Broeksmit to succeed Dave Stevens as CEO and President

Broeksmit, who has spent his entire 33-year career in the mortgage industry, joins MBA from Treliant Risk Advisors...


June 7, 2018 - IMFnews

CFPB’s Enforcement Team Recommends Mulvaney Drop the PHH Case

Acting CFPB Director Mick Mulvaney sent a list of questions to both sides on May 11 asking for recommendations on the case proceeding.


June 6, 2018 - IMFnews

CFPB Disbands Consumer Advisory Board

“The bureau has not fired anyone,” a CFPB spokesperson maintained.


June 6, 2018 - IMFnews

Short Takes: Hey, Hands Off of GSE Multifamily / What Ed DeMarco Wanted To Do / Cuts at Stearns? / More Non-QM Lenders Target Self-Employed Borrowers / New Hires at Promontory MortgagePath

Over the years it seems as though commercial banks have basically ceded the multifamily market to nonbanks that use the GSEs as their secondary market takeout…


June 6, 2018 - IMFnews

Mulvaney Wants to Make the CFPB a ‘Gold-Standard’ Regulator

Interim CFPB chief Mick Mulvaney: “We are still closely associated with Sen. Elizabeth Warren. We are her baby. That’s not where a gold-standard regulator should be.”


June 6, 2018 - IMFnews

MBA Makes the Case to IRS that Lenders are Eligible for 20 Percent Deduction Included in Tax Reform

The trade group argues that if lenders organized as pass-through entities do not receive the new deduction, they will be at a competitive disadvantage...


June 5, 2018 - IMFnews

Short Takes: Angel Oak Buys Stake in Commercial MB / Questions Being Asked about Trading in GSE Corporate Bonds / Texas Mortgage Shop Closes? / A New Hire for Pavaso

Another mortgage company has closed. This one in Texas...


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.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

vote to see results