Regulations

Browse articles from all of our Newsletters related to Regulations.

November 15, 2018 - IMFnews

Short Takes: Who is Andrew Olmem and Why Does He Matter? (GSE Reform) / A Production Gain for Ditech / Citywide Home Loans Signs Partnership Deal with Stearns / Caliber Readies Nonprime MBS

If you haven’t heard of Andrew Olmem before, it’s because he tends to keep a low profile.


November 15, 2018 - IMFnews

Very Good News: MMIF Capital Ratio Improves to 2.76 Percent. As for a Cut in Premiums…

The fund's value has improved, but FHA premiums will not be cut...


November 14, 2018 - IMFnews

Short Takes: MMIF Audit Due Thursday / Good News Expected but no FHA Premium Cut / Trades Voice Support for Kraninger at the CFPB / A Promotion at Stewart Title

The groups expressed their view that Kraninger has the ability to lead and manage the CFPB and protect the financial interest of consumers.


November 14, 2018 - IMFnews

1,400 Stakeholders Contacted as Part of GSE UMBS Conversion

Fannie and Freddie and their joint venture, Common Securitization Solutions, will implement the SSI and issue the first UMBS on June 3 of next year…


November 13, 2018 - IMFnews

Short Takes: Assessing the Value of GSE Common / The Prior Decade and GSE Share Prices / Worrying About Home Values in California / Another MBS Settlement for Wells Fargo / Vendor Hires Fannie Mae Official

Early last decade, Fannie common once traded as high as $85.03, Freddie $68.20.


November 13, 2018 - IMFnews

Industry Calls for CFPB Rulemaking to Clarify the Role of Guidance

Lenders continue to worry about examiners critiquing them on issues not based in law…


November 13, 2018 - IMFnews

KBW Raises Earnings Estimates on Fannie and Freddie, Questions CRTs

As of Sept. 30, Fannie and Freddie had some form of risking sharing on 38 percent to 42 of their guaranteed portfolios, respectively.


November 13, 2018 - IMFnews

CFPB Exams Continue Apace Despite the 'Mulvaney Effect’

MBA’s Pete Mills noted that IMBs of all sizes from small to large are examined each year…


November 12, 2018 - Inside the CFPB

Other News in Brief: Former CFPB Director; HMDA Guide; Semi-Annual Report; Military Lending Act

Former CFPB Director Loses in the Ohio Governor’s Race. Former CFPB Director Richard Cordray lost in the Ohio governor’s race last week. Republican Attorney General Mike DeWine led a GOP sweep of statewide nonjudicial offices. In his campaign, Cordray boasted of his record reining in Wall Street during his tenure at the CFPB. He worked as the CFPB director from its inception until 2017, when he quit to run for governor of the Buckeye State [Includes four briefs] ...


November 12, 2018 - Inside the CFPB

Diamond Residential Mortgage to Pay $1.2 Million for Alleged Fraud

An Illinois-based mortgage company will pay $1.2 million in restitution to consumers after a state investigation found a company’s branch manager defrauded consumers. Diamond Residential Mortgage Corp., Lake Forest, IL, recently settled with Illinois Attorney General Lisa Madigan and the Illinois Department of Financial and Professional Regulation, resolving a mortgage fraud allegation. Diamond’s Springfield branch manager, Chris Schaller ...


November 12, 2018 - Inside the CFPB

CFPB May Tackle Data Integrity in Upcoming Debt Collection Rule

The CFPB’s recent complaint snapshot report hinted at a possible focus of the upcoming debt collection rules, said attorneys. Credit reporting, debt collection, and mortgage continued to be the three categories that drew the most consumer complaints, according to the report. Among public gripes regarding debt collection practices, some 40 percent said companies “attempt to collect debt not owed.” It is a significant trend, said attorneys, because Acting CFPB Director Mick Mulvaney ...


November 12, 2018 - Inside the CFPB

CFPB’s Info Security Program Improved in Incident Responses

The CFPB’s information security program has improved in the past year with more effective incident responses to detected cybersecurity events, according to a recent report from the bureau’s Office of Inspector General. On a scale of one to five, the CFPB’s overall information security program is operating at a level three or “consistently implemented.” Several activities are being performed at a higher level, according to the OIG. The major improvement ...


November 12, 2018 - Inside the CFPB

Employee Union Asks CFPB to Halt Fair Lending Office Restructuring

A union representing CFPB employees recently asked the agency to halt the reorganization of the fair lending office, alleging the bureau did not bargain with the union in good faith. The reorganization was announced in January, but the CFPB is still negotiating the matter with the National Treasury Employees Union. The NTEU in late October filed a mass grievance against the CFPB over its handling of racially tinged blogs posted by Eric Blankenstein


November 12, 2018 - Inside the CFPB

Court Stays Compliance Date of Payday Rule Pending Rulemaking

Lenders no longer need to start complying with the CFPB’s payday-lending rule on Aug. 19, 2019, a judge ruled. In an unexpected development, Judge Lee Yeakel of the U.S. District Court for the Western District of Texas Austin Division last week reversed his prior orders that denied the request to delay the compliance date of the payday rule. The case was filed by two industry groups – Community Financial Services Association of America and Consumer Service Alliance of Texas ...


November 12, 2018 - Inside the CFPB

Industry Calls for Rulemaking to Clarify the Role of Guidance

Industry groups last week petitioned the CFPB to issue formal rules on the role of supervisory guidance. The Bank Policy Institute and the American Bankers Association urged the bureau to codify its recent statement clarifying the role of supervisory guidance as a formal rulemaking under the Administrative Procedure Act. The CFPB joined other federal regulators in issuing a statement clarifying that supervisory guidance does not have the force and effect of law ...


November 12, 2018 - Inside the CFPB

S&P: Servicers Need to Keep Best Practices Despite Loosening Regs

S&P Global Ratings last week urged mortgage servicers to continue to follow the best practices established after the financial crisis, even as some federal regulators are adopting less assertive regulatory approaches. “While we believe the regulatory landscape has changed and that these actions offer some promising developments for servicers, this overture could still prelude some hurdles,” an S&P report said. “Since servicers have invested considerable capital ...


November 12, 2018 - Inside the CFPB

Midterms for CFPB: New Director, More Congressional Oversights

The results of the 2018 midterm elections are sure to have implications for the CFPB. The questions are what and to what extent. One thing is almost for sure: the CFPB will have a new director – Kathy Kraninger – next year, because Senate Republicans netted three more seats, a comfortable 54-46 margin. “We will see a new leader at the CFPB in the next year and it will be interesting to see the interaction of that CFPB leadership with Congress ...


November 12, 2018 - Inside the CFPB

CFPB Exams Continue Apace Despite Its Seemingly Soft Touch

Acting CFPB Director Mick Mulvaney is perceived as someone who’s taking a softer touch on enforcement matters than his predecessor, but nonbank mortgage originators are still being examined at a regular clip, according to industry attorneys As for how many lenders are being examined each year, that’s a different matter. The agency, as a practice, does not disclose those figures. “We’ve had a significant number of nonbank clients get examined by the CFPB ...


November 12, 2018 - IMFnews

Short Takes: Still Hiring, UWM / Strong Growth for the Nation’s Largest Wholesaler / The Moelis GSE Plan: the Good and the Bad / Promotions at Nations Lending

United Wholesale Mortgage continues to hire...


November 12, 2018 - IMFnews

Odds of GSE Reform May Not Have Changed Much

Gone from the Senate, via retirement, is Sen. Bob Corker, R-TN, a moderate Republican who was a proponent of reforming the secondary mortgage market…


November 9, 2018 - IMFnews

What We’re Hearing: The ‘Hensarling Effect’ / Team Trump, Not Congress, Will Reshape the Fannie and Freddie / Timing? / Selling Servicing Rights to Unleash Revenue / Ocwen’s Head Count

The first move expected is a possible lowering of GSE loan limits...


November 9, 2018 - IMFnews

CFPB and FHFA Release First Loan-Level Dataset for Public Use

The CFPB and FHFA have been compiling the survey data but have never released the results.


November 9, 2018 - IMFnews

14 Nonbanks Received the Ginnie ‘Liquidity’ Letter. A Concern Regarding ‘Cash-out’ Moves by Owners?

The implication is that declining originations, plummeting refinancing volume and razor-tight profit margins are causing consternation at Ginnie…


November 8, 2018 - Inside MBS & ABS

Federal Regulators’ Proposal to Loosen Capital/Liquidity Requirements Could Prompt Banks to Cut MBS Holdings

A proposal issued by federal regulators last week to ease certain standards for capital and liquidity will likely prompt banks to reduce their holdings of MBS, according to industry analysts. The complex proposal could prompt a $65.0 billion reduction in bank holdings of MBS, according to estimates by the Federal Reserve and Wells Fargo Securities.


November 8, 2018 - IMFnews

Short Takes: A Sale Agreement but What’s the Price, Mr. Cooper? / A Material Event? / UBS Expects DOJ Action / Ellington’s New Non-QM MBS / A New Hire for Home Point

UBS said the Department of Justice intends to file a civil complaint against the company relating to pre-crisis MBS issuance...


November 8, 2018 - IMFnews

HUD Working on MOU to Clarify Use of False Claims Act

FHA is considering its Mortgagee Review Board as an alternative to the FCA in meting out penalties...


November 7, 2018 - IMFnews

Short Takes: GSE Oversight Hearing Delayed Yet Again / Coming in 2019? / Maxine Water’s GSE Reform Bill? / Bermuda Insurer Partners with Radian / Ocwen’s New Name? Maybe Newco? / PrimeLending’s New Hire

Will Rep. Maxine Waters tackle GSE reform?


November 7, 2018 - IMFnews

QM Patch Expiration Could Shift More High-DTI Loans to FHA

Analysts see the expiration of the QM patch as having a lesser effect on the non-agency market and a greater impact on FHA...


November 7, 2018 - IMFnews

NYSE Suspends Trading in Ditech, Nation’s 13th Largest Servicer

Ditech said it has no plans to appeal the NYSE’s decision.


November 6, 2018 - IMFnews

Short Takes: Calabria for the FHFA Job? / Egenhoefer’s New Gig? / Ocwen’s Share Price Gets Clocked / WAMCO Prepares EC MBS / Invitation Homes’ SFR Inventory / Fast-Growing Servicers

Among the nation’s top 20 servicers at Sept. 30, Freedom Mortgage had the largest increase its MSR balances...


November 6, 2018 - IMFnews

Ginnie Asks Top Servicers to Come up with ‘Liquidity Plan’

One observer with clients who received the letter, said: “This has spooked the horses.”


November 5, 2018 - IMFnews

Short Takes: The Election Day Crystal Ball and the GSEs / One More Try at a GSE Bill? / Hensarling Wants to Bury the GSE Model / John Britti’s Extra Pay / A New Texas Branch for Waterstone

On Friday, long-time GSE critic Rep. Jeb Hensarling, R-TX, took one more rock to Fannie and Freddie...


November 2, 2018 - Inside FHA/VA Lending

Around the Industry

Reporting on VA Loans Impacted by Natural Disaster. The Department of Veterans Affairs is cautioning servicers against reporting as delinquent VA loans that are impacted by a natural disaster. The electronic default notification (EDN) should only be reported prior to the 61st day of delinquency if the borrower intends to abandon the property or pursue an alternative to foreclosure, according to VA. Cite “property problems” as the reason for default, the agency added. On the 61st day of delinquency, servicers should use “casualty loss” as the reason for default when reporting the EDN. This will help VA identify loan defaults caused by a natural disaster. Texas USDA Guaranteed Housing Program See Increased Volume. The USDA guaranteed single-family guaranteed housing programs in the Lone Star State are experiencing significant volume increases, and consequently, ...


November 2, 2018 - Inside FHA/VA Lending

QM Patch Expiration Could Shift More High-DTI Loans to FHA

Certain potential changes could materially affect origination volume and determine the government-sponsored enterprises’ direction going forward, according to analysts. One of those changes could have a significant impact on the FHA market. Wells Fargo Securities analysts recently looked at three potential developments in the Fannie Mae/Freddie Mac sphere and evaluated their effects on the broader mortgage market. Two of those potential changes – loan limits and guarantee fees – are controlled directly by the Federal Housing Finance Agency, while the third relates to the temporary GSE qualified-mortgage exemption, or “QM patch,” which could affect the FHA market. All three factors loom over the mortgage landscape as the FHFA expects a new director in January 2019, who is likely to be more right leaning and could shift the focus back to shrinking the ...


November 2, 2018 - Inside FHA/VA Lending

MBA Backs USDA’s Proposed Changes to Loss-Claim Process

The Mortgage Bankers Association welcomed proposed changes to the U.S. Department of Agriculture’s single-family loss-claim and loss-mitigation process but cautioned the proposal, as drafted, will result in higher lender losses on foreclosed properties. The USDA/Rural Housing Service proposal would amend single-family guaranteed loan regulations to streamline the claims payment process for lenders who have acquired title to property through voluntary liquidation or foreclosure. The proposal would require lenders to order a market-value appraisal 15 days after acquiring title and submit their claim within 45 days of receipt of the appraisal. RHS believes the proposal would eliminate the need for real estate-owned property-disposition plans, different loss claims calculations based on whether the property is sold or remains in the lender’s REO portfolio, and claims adjustments based on future ...


November 2, 2018 - Inside FHA/VA Lending

FHA Streamlines Claim-Payment Rules for Reverse Mortgage Loans

FHA-approved servicers will now find it easier to file a Home Equity Conversion Mortgage claim under revised HECM rules announced by the Department of Housing and Urban Development last week. The new requirements apply to HECM loans that have reached 98 percent of their maximum claim amount, according to Mortgagee Letter 2018-08. The revised rules took effect on Oct. 22, but HUD will accept public comments for a period of 30 calendar days. Compliance experts say the change is good news for a program that has been experiencing substantial losses and lower volumes. Significant revisions were made last year to cut losses and make the product more efficient, but they have not been enough, said FHA Commissioner Brian Montgomery. Under the revised rules, HECM servicers can use alternative supporting documentation in lieu of previously required materials that ...


November 2, 2018 - Inside FHA/VA Lending

HUD Fails to Recover Millions in Surplus Proceeds, IG Audit Finds

The Department of Housing and Urban Development’s inspector general recommended that HUD pursue the collection of $5.7 million in surplus proceeds it is entitled to reclaim from 2017 loan terminations. The IG found $6.8 million in uncollected surplus proceeds from non-conveyance foreclosures in the possession of custodians. The IG said it initiated a review when it discovered while doing an unrelated audit that a trustee attorney held surplus proceeds from two non-conveyance foreclosures and HUD had not claimed these funds to offset earlier partial claims it had paid for the properties. The latest audit found that HUD did not always do its job. Of the 81 foreclosures reviewed, 32 had nearly As a result, an estimated $6.8 million in surplus proceeds never made it into the FHA insurance fund. Various third parties benefited at HUD’s expense, and the unclaimed funds sat dormant with custodians. The IG recommended ...


November 2, 2018 - Inside FHA/VA Lending

FHA Lenders Agree to Pay $26.7M To Settle False Certification Claims

Two FHA lenders entered into settlement agreements with the Department of Justice and the Department of Housing and Urban Development last week to resolve allegations they violated the False Claims Act in connection with FHA-insured mortgages. PrimeLending of Dallas and Universal American Mortgage Co. (UAMC) of Miami have agreed to pay a total of $26.7 million without admitting to any liability or wrongdoing. As part of an industry-wide inquiry, PrimeLending received a subpoena from the HUD inspector general for documents and other information related to its mortgage practices, including origination of FHA loans. On Aug. 20, 2014, the DOJ issued a civil investigative demand announcing an investigation of PrimeLending for potential FCA violations in connection with the origination and underwriting of FHA single-family loans. On Oct. 23, 2018, PrimeLending entered into a settlement and ...


November 2, 2018 - Inside FHA/VA Lending

GNMA Sees Growing Need for Financing of Nonbank MSR

Ginnie Mae officials would welcome a return of commercial banks to the program, but they are not planning on it. Instead, the agency is looking the other way: at expanding financing options for nonbank portfolios of mortgage servicing rights. The current version of Ginnie’s acknowledgement agreement has been successful, enabling nonbank servicers to arrange MSR financing for virtually their entire portfolios, said Michael Drayne, a senior vice president at Ginnie, during the Residential Mortgage Finance Symposium sponsored by the Structured Finance Industry Group this week in New York. Although a number of banks are financing nonbank servicing portfolios, many are still not participating, he said. Karen Gelernt, a partner at Alston & Bird, noted that many banks continue to have anxiety about what will happen if a servicer defaults on its Ginnie requirements. Speaking as moderator on a panel with ...


November 2, 2018 - Inside FHA/VA Lending

Brokers Gain Share in FHA Lending, But Fall Back in VA Production

Wholesale-broker production of FHA loans was up 8.1 percent from the second to the third quarter of 2018, making it the fastest-growing channel in the program, according to a new Inside FHA/VA Lending analysis of Ginnie Mae mortgage-backed securities data. However, the volume of brokered VA loans securitized during the third quarter fell 4.0 percent from the previous period, the only channel to show a loss over that period. Correspondent production remained king in the FHA segment, with volume rising 7.4 percent from the second quarter. Correspondents generated 48.9 percent of FHA loans delivered into Ginnie MBS pools over the first nine months of the year. PennyMac Financial and Amerihome Mortgage duked it out as the top correspondent platforms in the third-quarter FHA market. Retail was runner-up with a 35.6 percent share of FHA year-to-date business, with wholesale-broker accounting for just ... [Charts]


November 2, 2018 - IMFnews

What We’re Hearing: The Strange Case of Fannie Mae and Freddie Mac / Pro-Pilot Programs / Warren Buffett and the GSEs / Mortgage Recruiter by Day, Opera Singer by Night / Lima One Makes its Move / Magnetar?

A huge non-QM expansion for Athas Capital?


November 2, 2018 - IMFnews

MBA Urges CFPB to Relax, Clarify LO Comp Rule to Spur Lender Competition

MBA sent the CFPB a letter signed by 250 member firms…


November 1, 2018 - IMFnews

First Pacific Advisors Discloses a 30.9 Percent Stake in Ditech

First Pacific is an institutional money management firm...


November 1, 2018 - IMFnews

Trump’s FHFA Appointee Expected to Curb GSE Footprint but Not Enough to Roil Housing

Eric Kaplan of the Milken Institute: “I don’t think the non-agency market is ready to absorb the market that’s taken away from the GSEs without some significant signaling in advance.”


October 31, 2018 - IMFnews

Freddie’s Layton: GSE CRT Economics Sometimes Misunderstood

Freddie CEO Don Layton said the CRT deals are “amazingly efficient…”


October 31, 2018 - IMFnews

States Criticize the CFPB’s Plan for a Trial Disclosure ‘Sandbox’

The current policy, issued in 2013, says the bureau will not approve a trial disclosure that weakens consumer understanding of valuable information, even if it improves cost effectiveness.


October 30, 2018 - IMFnews

Short Takes: Parity for the FHLBs and FanFred? / Once a Contender / Newfi and Non-QM / Strong Earnings from First American but Anxiety Too / From Alibaba to MGIC

Roughly 40 percent of Newfi Lending’s current loan volume entails the origination of mortgages that do not meet the qualified mortgage test.


October 30, 2018 - IMFnews

Digital Footprint Useful for Predicting Loan Defaults

Fun fact: Consumers with their names in the email address were 30 percent less likely to default than other customers.


October 30, 2018 - IMFnews

A Possible Problem for Ginnie: Fannie/Freddie MBS Getting an Explicit Guarantee from Uncle

Rob Zimmer, director of external affairs for the Community Mortgage Lenders of America, is in the camp of those worrying about the ramifications…


October 30, 2018 - IMFnews

Fairholme Tells Investors Court Ruling ‘Should Advance’ the ‘Re-IPO’ of Fannie and Freddie

Fairholme adds: “This is good news when you count the cash that Fannie and Freddie have earned and will earn.”


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.
Yes, but only incrementally.
We’re pondering a move into non-QM, but haven’t made up our mind.
No, definitely not. We view it has too risky.

vote to see results