Tag Archives: Regulation

Fannie Mae and Freddie Mac have both updated their seller guides to incorporate the Consumer Financial Protection Bureau's Ability to Repay rule under the Truth in Lending Act.

Since helping draft the final rule for a qualified mortgage, former Consumer Financial Protection Bureau (CFPB) Deputy Director Raj Date has resigned from the agency and opened his own advisory and investment firm aimed specifically at those borrowers who do not meet the standards for 'qualified mortgages' as set by the CFPB under rules. This turn of events has raised questions as to the agency's ethics and integrity, prompting lawmakers to call for a release of communications between Date and others regarding the company's creation.

A survey conducted for the American Action Forum (AAF) shows the majority of American voters view Fannie Mae and Freddie Mac unfavorably and would support phasing out the mortgage giants. The survey found that the enterprises have yet to recover in the public eye, with 52 percent of those surveyed saying they view the companies unfavorably and only 20 percent viewing them favorably. Wes Anderson, who oversaw the poll, described the public image of Fannie Mae and Freddie Mac as "nearly toxic."

Federal regulators announced a proposal Tuesday to double the standard Basel III leverage ratio for the "largest, most systemically significant" banks. The proposal would also require covered bank holding companies to maintain a tier 1 capital leverage buffer of at least 2 percent above the minimum supplementary leverage ratio requirement of 3 percent, for a total of 5 percent, the regulators stated. Currently, the proposed rule would apply to eight banks.

The Federal Reserve Board announced its approval of a final rule to implement the Basel III regulatory capital reforms and other changes required by the Dodd-Frank Act.

The Consumer Financial Protection Bureau (CFPB) announced Monday proposed revisions to its ability-to-repay rule, mortgage servicing rules, and rules regarding consumer protections. "Today's proposal revises and clarifies certain aspects of our rules to ease implementation and to pave the way for more effective consumer protections in the marketplace," said Richard Cordray, director of the CFPB. Monday's proposals also addressed the ban on financing credit insurance premiums.

The Community Mortgage Lenders of America (CMLA) unveiled the Community Mortgage Lenders Act of 2013, a piece of legislation designed to spur lending, maintain effective consumer protections, and remove what the group calls "excessive regulations aimed for other parts of the market." Under the proposed legislation, "responsible" community lenders (defined as those who have no history or predatory or abusive loan practices and whose product predominantly falls under the qualified mortgage criteria) would be exempt from several rules.

The Consumer Financial Protection Bureau (CFPB) released updated procedures for examinations of financial institutions and mortgage lenders, which will begin taking place in January of next year. The new procedures, which will be published in regulatory manuals, cover a range of topics, including compensation for loan originators, qualification standards for mortgage professionals, consumer rights, arbitration, and appraisals.

The Consumer Financial Protection Bureau (CFPB) announced Wednesday it has finalized amendments to the Ability-to-Repay rule first handed down in January this year. The rule, set to take effect January 10, 2014, establishes basic requirements designed to ensure consumers don't take on loans they can't pay back. According to CFPB, Wednesday's amendments are the result of months of input offered by industry groups and the public at large, embodying the bureau's efforts "to make reasonable changes to rule."

As the housing market experiences a burgeoning recovery with rising prices, an uptick in sales, and an increase in housing starts, Federal Reserve Governor Elizabeth A. Duke points out purchase-originations remain "subdued," especially among individuals with less than stellar credit scores. While originations are down across the board, "[t]he drop in originations has been most pronounced among borrowers with lower credit scores," Duke said at the Housing Policy Executive Council Thursday in Washington, D.C.