OFHEO Tells GSEs to Follow Banking Regulators’ Guidance on Nontraditional Mortgage Products
December 14, 2006
In what appears to be an historic intrusion into Fannie Mae and Freddie Mac business practices, the Office of Federal Housing Enterprise Oversight this week instructed the two government-sponsored enterprises to bring their mortgage purchase programs into compliance with underwriting and marketing guidelines for nontraditional...
The regulator said in an amicus brief Wednesday that home equity investments can be considered credit and subject to Truth in Lending Act requirements.
“We’re still not at the level of profitability where we should be in home lending, just given as we continue to wind down that servicing book,” said Charlie Scharf, CEO of Wells.
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