Tag Archives: Regulation

The Consumer Financial Protection Bureau (CFPB) issued Wednesday an Advance Notice of Proposed Rulemaking on guidelines related to the debt collection industry. "For decades, many consumers have reported various unacceptable practices in the debt collection industry. Today's action will allow us to hear from the public as we consider what rules are needed," said Richard Cordray, director of the CFPB. The bureau also announced it will begin adding consumer complaints about debt collections to its public database.

Mortgage Bankers Association (MBA) president and CEO David Stevens took the stage at the group's 100th Annual Convention and Expo Monday morning, reflecting on the last century in housing and shining a spotlight on today's challenges. While he notes that the government's response to the economic crisis has seen its share of successes, he also says Washington needs to recognize and take responsibility for the shortcomings of its policies, a step he believes policymakers have been reluctant to take.

The Consumer Financial Protection Bureau (CFPB) has ordered two mortgage banks to pay civil penalties for violating the Home Mortgage Disclosure Act (HMDA) with allegedly inaccurate for applications from 2011. According to a release from the agency, Mortgage Master (a nonbank headquartered in Walpole, Massachusetts), and Washington Federal (a Seattle-based bank), failed HMDA reviews when it was determined "that their compliance systems were inadequate and that they had severely compromised mortgage lending data."

The Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index (MCAI) decreased 0.7 percent in September to 110.7. "Credit availability tightened last month as more lenders removed program offerings with loan terms greater than 30 years and/or interest-only features, similar to the trend we observed last month," said Mike Fratantoni, MBA's VP of research and economics. "[W]e believe this reflects lenders' implementation of the Ability to Repay/Qualified Mortgage regulation which comes fully into effect in January."

HUD released on Monday a proposal to define the type of qualified mortgage (QM) that would be insured, guaranteed, or administered by the agency. The proposed definition is aligned with the Ability-to-Repay rule laid out in the Truth in Lending Act (TILA) and includes provisions that prohibit loan terms in excess of 30 years and that limit upfront points and fees to no more than 3 percent--making it consistent with the Consumer Financial Protection Bureau's existing QM rule.

Originators and servicers are going to have to step up their documentation procedures as regulatory guidelines dovetail, financial services firm PwC says in a new white paper. "The age-old question asks: if a tree falls in the forest and no one hears it, does it make a sound? A modern version to that question might be: if a lender in fact determines a borrower's ability to repay, or originates a Qualified Mortgage (QM), but cannot evidence it, has the lender complied with the Ability-to-Pay (ATR) or QM standards?" PwC asks.

President Obama spoke to the nation Monday--one day after the five-year anniversary of the Lehman Brothers collapse that kicked off the financial crisis--to tout the progress the country has made and to urge Republicans to action as a potential government shutdown looms. The president wasn't the only one to speak--other current and former government officials and analysts offered their own commentary on the country's circumstances, and not all of it was charitable.

Mortgage-related litigation remained historically high in the first quarter, according to data from Mortgage Daily. The site's First Quarter 2013 Mortgage Litigation Index shows there were 227 mortgage-related cases tracked that saw activity in Q1--little changed from Q4 2012's 223 but up from 216 the year prior. Cases related to mortgage-backed securities, regulation, commercial mortgages, and investor problems all saw increased activity.

With months to go before the implementation of the Consumer Financial Protection Bureau's (CFPB) qualified mortgage (QM) rules, the agency released several finalized amendments and clarifications created to ease the process.

At an industry event held in Phoenix, Darrin Benhart, deputy comptroller for credit and market risk at the Office of the Comptroller of the Currency, described the changing face of risk management as the mortgage industry adapts to increased regulation. "As you well know, the list of mortgage-related reforms is extensive," Benhart said. "These reforms mean you will need an even greater emphasis on risk management techniques that not only look at credit risk but also encompass operational and compliance risk."