Regulations

Browse articles from all of our Newsletters related to Regulations.

January 18, 2019 - Inside FHA/VA Lending

Around the Industry

DOJ, HECM Servicer Agree to False Claims Act Settlement. Compu-Link Corp. agreed to a civil settlement with the U.S. Attorney’s Office of the Middle District of Florida. The company will pay $4.25 million to the government to resolve alleged violations of the False Claims Act in connection with the servicing of FHA-insured reverse mortgages. According to federal prosecutors, the Michigan-based servicer of Home Equity Conversion Mortgages obtained insurance payments from FHA without disclosing that the mortgagee had missed appraisal deadlines and, therefore, was ineligible for such payments. In addition, the company allegedly failed to initiate foreclosure proceedings as required and see to their completion. Consequently, between Nov. 1, 2011, and May 1, 2016, the mortgagee in question allegedly obtained additional interest it was not entitled to, prosecutors said. Essent Announces Launch of EssentEDGE. Essent Guaranty’s EssentEDGE, a new platform supporting a fully integrated pricing engine, will be available to customers on Jan. 21. The platform enables lenders to price more attributes at the loan level, unlike the current rate-card pricing structure, which is generally based on broad FICO and loan-to-value ranges.


January 18, 2019 - Inside FHA/VA Lending

Plan Afoot to Reintroduce VA ‘Orphan Loan’ Measure

Congress reportedly plans to reintroduce legislation that would restore Ginnie Mae eligibility for hundred-million dollars’ worth of so-called orphan VA streamline refinance loans. H.R. 6737, Protect Affordable Mortgages for Veterans Act of 2018, was passed by the House by voice vote on Sept. 26 last year and was sent to the Senate, where it was stalled on a technicality. The bill aimed to clarify new seasoning requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (S. 2155) that specifically applied to VA’s Interest Rate Reduction Refinance Loans and which became effective upon enactment. The requirements were designed to curb churning of VA loans that were triggering unusually fast prepayments in Ginnie Mae mortgage-backed securities. Some lenders and brokers were soliciting homeowners to refinance their VA mortgages more than once to ...


January 18, 2019 - Inside FHA/VA Lending

Bright’s Hasty Exit Leaves a Vacuum at Ginnie Mae

Ginnie Mae has reached the halfway mark of President Trump’s first term without a permanent leader and appears likely to remain so until after the 2020 presidential election. Last week, Michael Bright, President Trump’s nominee to head Ginnie Mae, abruptly announced his resignation after waiting for months to be confirmed. Bright, who was executive vice president and chief operating officer, served as acting president of the agency after former President Ted Tozer resigned at the end of the Obama administration. Senate rules require resubmission if a nominee is not confirmed within the year he or she was nominated. This means going through the Senate vetting and confirmation processes all over again. It appears Bright no longer wanted to do that, opting instead to join the Structured Finance Industry Group, which represents all segments of the securitization industry, as president. In a Jan. 9 resignation letter to ...


January 18, 2019 - Inside FHA/VA Lending

VA Stakeholders Struggle With Interim Cash-Out Rule

More clarity is needed with regards to the Department of Veterans Affairs’ proposed changes to its rules on cash-out refinances, VA lenders said. Most lenders are confused by the regulatory language on the interim final rule published a month ago in the Federal Register. Some warn that the rule may hurt VA borrowers. The rule is out for comment until Feb. 15, the same day it becomes effective. The rule is intended to curb abusive lending practices of cash-out refinances even as consumer preference for such loans grows. It separates cash-out refis into two types. Type 1 is a loan being refinanced that is already guaranteed by VA and where the new loan amount is equal to or less than the payoff amount of the original loan. Type 2 cash-out loans are those in which the amount of the principal for the new loan is larger than the payoff of the refinanced loan. Under the interim final rule, both types of cash-outs would be ...


January 18, 2019 - Inside FHA/VA Lending

Servicers Urged to Offer Relief to Laid-Off Workers

FHA and VA are calling on servicers to provide special relief to furloughed federal workers and contractors as the partial government shutdown neared a full month with no end in sight. In their respective guidelines, the agencies expressed concern over the financial hardships experienced by borrowers as a result of the shutdown. They urged servicers to be sensitive to those who have been temporarily laid off or have been experiencing a loss or reduction of income. The shutdown is nearing a full month as conflict between President Trump and House Democrats over funding of a wall at the U.S.-Mexico border remained unresolved. The Democrat-controlled House has passed a number of temporary spending bills with provisions for border security but the president has threatened to veto any funding measure that does not have the $5.7 billion he is seeking for the wall. Chances of passage in the ...


January 18, 2019 - IMFnews

What We’re Hearing: GAO Worries About Fannie & Freddie / The Return of Jeb Hensarling / Top-Ranked Nonbank Enters the HELOC Market / Quicken Courts the Refi Market / Eddy Perez to Head MORPAC / Take Our Salary Survey

The title of the new GAO report says it all: The Prolonged Conservatorships of Fannie Mae and Freddie Mac...


January 18, 2019 - IMFnews

Government Shutdown Causing Uncertainty for ABS, MBS Issuers

Mayer Brown attorneys said because of the government shutdown SEC staff is not available to review and accelerate the effectiveness of registration statements…


January 17, 2019 - IMFnews

Short Takes: A Landmark Non-QM MBS from Angel Oak / Better Mortgage Sees Furloughed Government Workers and Comes Up with a Product to Serve Them / Retail Declines at BB&T / Seterus Hands Out Pink Slips to 300 / MGIC’s Results / MBA Promotes Knowlton

The Seterus platform will cut 300 full-time workers in the Durham area. The unit is being sold to Mr. Cooper...


January 17, 2019 - Inside Mortgage Finance

GSE Patch Fate Undecided Despite Its Importance

Uncertainty over the future of the so-called GSE patch — which the Consumer Financial Protection Bureau says helped Fannie Mae and Freddie Mac vastly boost mortgage market share — has industry watchers worried.


January 17, 2019 - Inside Mortgage Finance

More GSE Forbearance for Federal Employees?

As the record-long government shutdown nears the one-month mark, rumors are flying that Fannie Mae and Freddie Mac may ask servicers and lenders to offer more forbearance to furloughed federal employees.


January 17, 2019 - IMFnews

Ditech Gets a Breather from Its Note Holders (For Now); COO Terminated

Ditech also terminated the employment of Chief Operating Officer Ritesh Chaturbedi.


January 16, 2019 - IMFnews

Short Takes: Mr. Cooper Cuts Jobs in California / Blackstone’s Finance of America Unit Will Close Roseville Office / loanDepot Courting Wells Fargo LOs? / Freshman Socialist Will Sit on the HFSC / A New Hire for Nations Lending

Socialist Rep. Alexandria Ocasio-Cortez, D-NY, will sit on the House Financial Services Committee, which oversees banking, mortgages, as well as Fannie Mae and Freddie Mac.


January 16, 2019 - IMFnews

Ginnie Mae Postpones Annual Summit, Citing Government Shutdown

Scheduled speakers included Housing and Urban Development Secretary Ben Carson, Kasper and Edward DeMarco, former acting Director of the Federal Housing Finance Agency.


January 15, 2019 - IMFnews

Short Takes: Worrying About What Mark Calabria Might Do / Ever Seated? / A Price War Brewing in Non-QM? / Tim Anderson’s Blockchain Job / Freddie Gets a New General Counsel

We understand a bit of a price war may be brewing in the non-QM market...


January 15, 2019 - IMFnews

Consumer Complaints Up 3.8 Percent in 2018. Mortgage Gripes Tank

Companies with the most gripes filed against them were the three major credit reporting bureaus: Equifax, Experian and TransUnion...


January 14, 2019 - Inside the CFPB

In 2019, CFPB to Enforce the Law, Encourage Innovation

In a New Year’s message, Director Kathy Kraninger said the CFPB will “vigorously enforce the law” and encourage market innovation.


January 14, 2019 - Inside the CFPB

Other News in Brief

CFPB Receives Funding for Second Quarter of Fiscal 2019; CFPB Issues 2018 Annual Employee Survey; Mortgage Servicing Rules Apply to Servicers Only: Court Ruling.


January 14, 2019 - Inside the CFPB

Consumer Complaints Down in 4Q18, But Up Last Year

Consumer complaints across major categories saw double-digit declines in the fourth quarter, according to a new analysis by Inside the CFPB. [Includes one data chart.]


January 14, 2019 - Inside the CFPB

CFPB Must Prioritize Consumer Risks, Says GAO

The CFPB lacks a systematic process to prioritize consumer risks and use all of its tools to address them, the U.S. Government Accountability Office said in a recent report.


January 14, 2019 - Inside the CFPB

USAA to Pay $15.5 Million in Fines, Restitution to Clients

The CFPB has ordered USAA Federal Savings Bank to pay $15.5 million in restitution and fines to settle claims it neglected consumers’ stop payment requests and reopened accounts without consent. The consent order is the first one under the leadership of Director Kathy Kraninger.


January 14, 2019 - Inside the CFPB

Consumer Groups Seek Limits on Debt Collectors

Consumer advocacy groups have urged the CFPB to impose strict limits on debt collection agencies in order to protect consumers from abusive practices.


January 14, 2019 - Inside the CFPB

CFPB Should Clarify ATR for Non-QMs, Says Milken

The CFPB should clarify the ability-to-repay liability for non-qualified mortgages, the Milken Institute said in a recent report.


January 14, 2019 - Inside the CFPB

Judges Skeptical About CFPB For-Cause Removal

The CFPB defended its constitutionality in an oral argument last week before the U.S. Court of Appeals for the Ninth Circuit, but judges took issue with the for-cause removal provision.


January 14, 2019 - Inside the CFPB

Industry Says CFPB Should Protect Consumer Data

The CFPB should take steps to limit the data collection burden on industry and protect data security, industry groups said in response to a request for information regarding data collections.


January 14, 2019 - Inside the CFPB

CFPB Issues Rules on Public Release of Loan Data in 2019

The CFPB has restricted public disclosure of certain mortgage data collected by lenders in 2018 under the Home Mortgage Disclosure Act.


January 14, 2019 - Inside the CFPB

CFPB Assesses ATR/QMs, ‘GSE Patch’ and Servicing

The CFPB, in an assessment report last week, underscored the need to resolve the status of the temporary government-sponsored enterprises “patch” under the ability-to-repay and qualified mortgage rule.


January 11, 2019 - IMFnews

What We're Hearing: The Otting Era Commences / Waiting on the Senate (It Didn’t Work for Michael Bright) / 11 Days In and All Shook Up / HFSC Chair Worries about Furloughed Workers and Delinquencies / Keep an Eye on Jan. 15 / The Milken Institute Weighs in on ‘Administrative’ Reform of the GSEs

We’re just 11 days into the new year and already things are getting interesting in the mortgage industry...


January 11, 2019 - IMFnews

What Michael Bright’s Resignation Might Mean for GSE Reform

The odds of GSE “recap and release” becoming a reality just went down…


January 11, 2019 - IMFnews

Lenders Not Liable for a Servicer’s RESPA Violation

Under RESPA, servicers are generally required to consider borrowers for loss mitigation if the servicer receives a loss mitigation application at least 37 days before a scheduled foreclosure sale.


January 11, 2019 - IMFnews

CFPB Report Raises Questions about Non-QMs, DTIs, Servicing and More

The CFPB determined the ATR rule has reduced lending to some extent to borrowers with high debt-to-income ratios…


January 11, 2019 - Inside MBS & ABS

SEC Warns Rating Services for Flouting the Rules

Several rating services have received gentle warnings from the Securities and Exchange Commission for failing to follow policies and procedures, according to the latest annual report from the federal regulator.


January 11, 2019 - Inside MBS & ABS

Ginnie's Bright Resigns. Meaning for GSE Reform?

Acting Ginnie Mae President Michael Bright handed in his resignation this week, creating yet another vacancy in the Department of Housing and Urban Development hierarchy, and sparking discussions on what his departure might mean for reform of Fannie Mae and Freddie Mac.


January 10, 2019 - IMFnews

Short Takes: Who Is Maren Kasper? / Not Shy / Headed to the White House? / GSE ‘Recap and Release’ Just Got Knee-Capped / IMA Offers Bulk MSR Package

With Michael Bright's departure, GSE "recap and release" just got hurt...


January 9, 2019 - IMFnews

Market Shocker: Ginnie Mae Interim President Michael Bright Quits

Bright was first nominated to the post by President Trump in May of last year. He had been serving as an EVP at Ginnie.


January 9, 2019 - IMFnews

FHA Tells Servicers to be Lenient Toward Furloughed Federal Workers and Contractors

The FHA handbook states that servicers can receive a “financial incentive” for offering forbearance...


January 8, 2019 - IMFnews

Short Takes: $249 Million in Mortgage Payments at Risk? / Will Trump Order Fannie and Freddie to Stand Down? / Assessing Mark Calabria / Lovell Buys ATTOM / LoanLogics Hires Mortgage Tech Vet

Overwhelmingly, industry analysts expect Mark Calabria to shake things up at the Federal Housing Finance Agency – that is, once he’s approved by the full Senate.


January 7, 2019 - IMFnews

Short Takes: IRS Cranks Up the IVES Machine Again / Otting at FHFA, Day 1 / AltLoan Enlists a New Capital Markets Partner / 45 Percent Plan to Enter the Non-QM Space This Year / Academy LO Joins Bay Equity Home Loans

Roughly 45 percent of respondents said they definitely will enter the the Non-QM market this year.


January 7, 2019 - IMFnews

Democrats on the HFSC Seek FHA Loans for DACA Recipients

Although HUD has voiced its opinion on the eligibility of DACA recipients informally, no official, definitive pronouncement has been issued – to the consternation of lenders.


January 4, 2019 - Inside FHA/VA Lending

Around the Industry

Market Condition Addendum to VA Appraisals Dropped; Farm Bill Maintains Local Eligibility for USDA Rural Housing Programs.


January 4, 2019 - Inside FHA/VA Lending

VA Develops Red Flag Rule to Combat Identity Theft

The Department of Veterans Affairs’ Loan Guaranty Service issued guidance to help detect, prevent and mitigate identity theft in connection with VA mortgage loans.


January 4, 2019 - Inside FHA/VA Lending

Groups Resist Use of GNMA Model in GSE Reform Plan

The mortgage banking industry has raised concerns about a legislative proposal that would eliminate the current government-sponsored enterprise market and create a new secondary market structure based on a Ginnie Mae model.


January 4, 2019 - Inside FHA/VA Lending

Stakeholders Cite Flaws in VA’s Cash-Out Interim Rule

There are certain weaknesses in the Department of Veterans Affairs’ interim final rule on VA cash-out refinance loans that need to be ad-dressed to ensure borrowers and investors are protected from loan churning and other predatory lending practices.


January 4, 2019 - Inside FHA/VA Lending

Government Shutdown Has Little Impact on FHA, VA

The partial government shutdown, now in its second week, has had limited impact on the FHA and VA lending programs but could be disastrous to federal rural housing programs if prolonged.


January 4, 2019 - IMFnews

What We’re Hearing: Top Production Exec Ready to Depart? / The Mel Watt Era at the FHFA is About to End / Will IBM do to Promontory What it Did to Seterus? / Ugly Mortgage Job Numbers / Selling Ditech Shares / Dynex Hires Dave Stevens as a Director

One former Fannie Mae executive familiar with Seterus opined that IBM likely received “pennies” compared to what it invested in Seterus...


January 4, 2019 - IMFnews

Government Shutdown has Little Effect on FHA/VA Loan Programs (So Far)

No disasters have been reported yet, but some lenders are beginning to worry...


January 4, 2019 - Inside MBS & ABS

Ginnie Mae’s Accounting Woes Continued in FY 2018

Ginnie Mae again failed to correct an accounting flaw in its financial statements, prompting the Department of Housing and Ur-ban Development to withhold its opinion on the agency’s 2018 financial statement for the fifth consecutive year.


January 4, 2019 - Inside MBS & ABS

E.U. Rules for MBS Investors Could Impact U.S. Issuers

A new regulation set by the European Union for MBS and ABS issuance took effect at the start of the year. Though the rules don’t directly apply to U.S.-based deals, issuers here might have to comply if they want European investors to buy into their bonds.


January 4, 2019 - Inside MBS & ABS

SIFMA Holds Meeting to Discuss the Future of UMBS

Late last month, the Securities Industry and Financial Markets Association held a meeting that could impact the future of the Federal Housing Finance Agency’s single security initiative.


January 3, 2019 - IMFnews

Short Takes: The First Mortgage M&A Deal of the Year? / Mnuchin is Aware of the IRS Tax Transcript Problem / Will Government Workers Miss a Mortgage Payment? / Happy New Year from President Trump: Your Pay is Frozen / Tom Selleck Keeps Pitching HECMs / Celink Settles DOJ/FCA Claims

Celink, a servicer of reverse mortgages, has agreed to pay the federal government $4.25 million for violating the False Claims Act...


January 3, 2019 - Inside Mortgage Finance

Shutdown has Little Effect on FHA/VA Loan Programs

Agency mortgage business is proceeding normally as the partial shutdown of the federal government nears two weeks. FHA processing will likely be slowed, and there are still concerns about IRS transcripts. Federal flood in-surance remains in business.


Poll

Do mortgage lenders really need a new credit-scoring model or is the current FICO system adequate?

It’s fine. Stick with what works.
Time for a change. Borrowers are different today.
Undecided, still assessing the situation.

vote to see results