Late last week, the Consumer Financial Protection Bureau finalized revisions to some of its 2013 mortgage rules slated to take effect in January mostly mortgage servicing and loan originator compensation regulations whether the industry is ready or not. The amendments and clarifications that the bureau proposed in June and now finalized via a final rules on Sept. 13 include a number of changes sought by various industry groups. There were no big surprises between June and September, but some overlooked details, one of which was the CFPB determining that seller-paid points can be excluded from the 3 percent points-and-fees test for qualified mortgages under its ability-to-repay rule. Sellers points...are excluded...
Although Fannie Maes and Freddie Macs regulator has previously telegraphed additional increases in the government-sponsored enterprises guaranty fees sometime this year, it remains to be seen when or whether the Federal Housing Finance Agency will follow through on its 12-month-old proposal to charge higher g-fees on loans in states with slow foreclosure processes. One year ago this week, the FHFA solicited public comments on a proposal to adjust the single-family g-fee that the GSEs charge in five states with unusually slow foreclosure times. The five states Connecticut, Florida, Illinois, New Jersey and New York would be subject to an additional upfront fee of between 15 and 30 basis points charged to lenders. The FHFA has said...
Mortgage lenders reported originating $2.01 trillion in home-purchase and refinance mortgages during 2012, a 43.7 percent increase from the prior year, according to a new Inside Mortgage Finance analysis of Home Mortgage Disclosure Act data released this week. Because HMDA data typically capture a relatively small share of home-equity originations and some small lenders dont report at all, the total originations number for last year was somewhat higher. Interestingly, the origination volume grew...[Includes one data chart]
The Consumer Financial Protection Bureaus amended final rule on ability to repay and qualified mortgages may have justifiable reasons but it is very complicated and difficult to implement, and likely to have unintended consequences, according to industry attorneys. Notwithstanding recent amendments to address concerns raised by the mortgage industry, the rule continues to pose challenges to lenders and attorneys in various areas. There are problems in the rules content and requirements as well as in developing policies and procedures to support it and the software to implement it, attorneys said. Were talking...
Fannie Mae has yet to implement a red flag system to identify trends and data anomalies for servicer reimbursements, according to a new report from the FHFA Inspector General.
Although the largest minority groups still had higher denial rates, there were bigger-than-average increases in refi activity among black and Hispanic borrowers.
Brokers and others who do business with Nationstar Mortgage said theyve been hearing stories about two-week delays on funds being delivered. Meanwhile, FHA has run out of multifamily money.