Tighter curbs on financial products and services, more stringent primary and secondary market practices, new restrictions on mortgage loan originator compensation, and tougher underwriting standards are all coming down the pike, but whether they will help hasten financial recovery or restrict the flow of affordable mortgage credit is unclear... [Includes one chart]
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Federal banking regulators are looking at ways to recast the Community Reinvestment Act to support economic recovery, including rule changes that would allow banks to earn extra CRA points for easing the problem of vacancy and abandonment of foreclosed homes.A recent proposal from the Federal Reserve Bank of Cleveland would award “outstanding” marks to banks that focus on...
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Republican senators last week urged Democratic leaders to conduct public votes on all major issues as efforts to reconcile the House and Senate regulatory bills get underway. In a May 27 letter, five Republican conferees asked Senate Banking Committee Chairman Christopher Dodd, D-CT, and House Financial Services Committee Chairman Barney Frank, D-MA, to ensure...
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The Federal Housing Administration is seeking comment on a recent decision to waive its anti-flipping protections for one year in order to facilitate a quicker turnaround for foreclosed and vacant properties. In a notice published in the May 21 Federal Register, the FHA said the goal of the anti-flipping waiver is to get fixer-upper specialists interested in acquiring and...
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Fannie Mae and Freddie Mac will be handling all complaints related to the Home Valuation Code of Conduct, jilting plans to create and fund an Independent Valuation Protection Institute as stipulated in a 2008 agreement with the New York Attorney General’s Office. In a May 20 letter to NY Attorney General Andrew Cuomo, the Federal Housing Finance Agency said the...
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The Department of Labor should withdraw a recent rule interpretation denying overtime pay exemption to mortgage loan officers or formalize rulemaking in this area, according to a coalition of financial services trade groups and small businesses. In a letter to DOL Secretary Hilda Solis, the coalition said the department’s recent interpretation of minimum wage and overtime...
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The mortgage broker industry warned member state agencies of the Nationwide Mortgage Licensing System and Registry that they may not have the legal authority to require licensees to submit quarterly mortgage call reports. Expressing concern in a comment letter over the recent NMLSR proposal, the National Association of Mortgage Brokers questioned the statutory basis for the proposed mortgage call report and called for an explanation as to why companies, rather than individual licensees, should be…
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The House Financial Services Subcommittee on Housing and Community Opportunity last week approved legislation strengthening the enforcement of federal housing laws that protect against discrimination in the sale or rental of housing. The subcommittee voted to substitute a bipartisan manager’s amendment to H.R. 476, the Housing Fairness Act of 2009, on a voice vote...
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The banking industry is nearing its breaking point as many small banks are exiting the business due to the growing list of regulatory burdens, warned the American Bankers Association. In a May 26 letter, the ABA urged Treasury Secretary Timothy Geithner to do something about the crushing weight of regulations, both existing and coming down the pike. “This is simply out of...
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New York. The U.S. District court for the Southern District of New York threw out a borrower’s claim ... New Jersey. For whatever reason an entity might use a LexisNexis Accurint Report in connection with... Georgia. On May 12, H.B. 1055 was signed into law increasing the fee for a recorded residential...
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Federal Trade Commission: ‘Teaser’ Website for Loan Scams. The FTC has created a “teaser” Web site for a fictitious lending company that warns consumers about... Department of Housing and Urban Development: Net Worth, Correspondent Approval. Rules governing new net worth requirements for HUD-approved mortgagees and discontinuing agency...
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Fannie Mae and Freddie Mac are working together to improve the quality and... Loan Resolution Corp., a national pre-foreclosure asset manager, has named Michelle... The Financial Accounting Standards Board has proposed an accounting standard... The Mortgage Bankers Association has a new chief lobbyist, Bill Kilmer...
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