Fannie Mae and the Federal Home Loan Bank of Chicago were among the public commenters supporting – with some key revisions – the CFPB’s proposed “right to cure” a mortgage made in good faith that inadvertently exceeds the 3 percent points-and-fees cap under the bureau’s qualified mortgage standard.Earlier this year, the CFPB proposed allowing a cure for a points-and-fee violation if three criteria are satisfied, the first of which is if the creditor in good faith intended to originate the loan as a QM and the loan otherwise meets the requirements of a QM. Additionally, the creditor or the assignee has to refund to the consumer the dollar amount by which the loan's points and fees exceed the applicable limit and ...
The House Financial Services Committee passed a handful of CFPB-related bills earlier this month, after a previously scheduled markup had been delayed by the death of the mother of Rep. Maxine Waters, D-CA, the ranking member on the committee. H.R. 3770, the CFPB-IG Act of 2013, introduced by Rep. Steve Stivers, R-OH, was approved 39-20. The bill would create a separate, independent inspector general for the CFPB. The CFPB currently shares an inspector general with the Federal Reserve System. H.R. 4262, the Bureau Advisory Commission Transparency Act, introduced by Rep. Sean Duffy, R-WI, was approved by voice vote. H.R. 4262 would open up CFPB advisory board meetings to the public. H.R. 4383, the Bureau of Consumer Financial Protection Small Business ...
RBS, which is effectively owned by the British government, still faces liability in private label security (PLS) matters tied to Greenwich Capital, a U.S. subsidiary that at one time was the largest nonprime issuer in the nation.
The supply of single-family MBS outstanding fell modestly during the first quarter of 2014, reversing three consecutive quarters of modest growth, according to a new Inside MBS & ABS analysis. As of the end of March there was $6.371 trillion of single-family MBS outstanding, down 0.3 percent from the end of 2013. The supply of single-family MBS had been drifting lower since peaking at $7.007 trillion at the end of 2009 as refinance activity – which adds little to outstanding supply – dominated the agency market and non-agency MBS issuance gained little traction. For the last nine months of 2013, the MBS market finally began...[Includes two data charts]
A group of institutional investors – including BlackRock and Pacific Investment Management Co. – filed suit this week against six banks for their alleged failure as mortgage-bond trustees for over $2 trillion worth of mortgage securities. The suits against the banks – U.S. Bancorp, Citigroup, Deutsche Bank, The Bank of New York Mellon, HSBC Holdings, and Wells Fargo – were filed in New York State Supreme Court, New York County. The plaintiffs seek unspecified damages for losses exceeding $250 billion on nearly 2,220 non-agency MBS trusts issued between 2004 and 2008. The suits allege...
A senior Treasury Department official pushed back against the idea of rehabilitating the two government-sponsored enterprises, noting in a speech late last week that the firms cannot be re-capitalized and reiterating the Obama administration’s commitment to wind down Fannie Mae and Freddie Mac. Mary Miller, the Treasury’s undersecretary for domestic finance, said that even if the two GSEs were allowed to stay in business and build up capital, it could take “at least” 20 years to recapitalize Fannie and Freddie. “During these 20 years, the taxpayer would remain...
Sources tell IMFnews that the Federal Housing Finance Agency is looking into the matter and is promoting the idea of capital minimums for nonbanks that do business with Fannie Mae and Freddie Mac.
Several top-tier commercial banks increased their holdings of first-lien mortgages during the first quarter of 2014, according to a new ranking and analysis by Inside Nonconforming Markets. The growing portfolios were largely due to jumbo mortgages along with some conforming loans. Banks and thrifts held $1.74 trillion in first-lien mortgages in portfolio at the end of the first quarter of 2014, down 0.7 percent from the previous quarter ... [Includes one data chart]