The House Financial Services Committee signed off on legislation Wednesday that would repeal bailout funds under the Dodd-Frank Act and more than half the Consumer Financial Protection Bureau's (CFPB) budget. Clearing the legislation by a party-line vote, committee members billed it as a way to slash $35 billion from the national deficit.
Read More
In response to mortgage servicing rules the Consumer Financial Protection announced it may propose, Fitch Ratings issued a statement and said it believes mortgage servicers will incur increased operational, compliance, and reporting expenses if the rules take effect. To create more transparency, the CFPB said it is considering rules which require clear monthly mortgage statements, a warning before interest rates adjust, options to avoid "force-placed" insurance, and early information to keep customers out of foreclosure.
Read More
The American Guild of Appraisers (AGA) petitioned the Fed and the Consumer Financial Protection Bureau to overturn a regulation that allows appraisers to be paid a fraction of what can be defined as a customary and reasonable fee, a release from the AGA stated. In 2010, Dodd-Frank rules were enacted to establish certain requirements for appraisals, including one to “ensure that creditors and their agents pay customary and reasonable fees to appraisers,” according to the Dodd-Frank website. But last year, the Fed introduced a new law that the AGA views as undermining the original Dodd-Frank requirement.
Read More
The Consumer Financial Protection Bureau (CFPB) is looking to propose a rule to standardize monthly mortgage statements to make them easier for customers to understand. The CFPB recently released an early draft of a statement and is seeking feedback. Once a refined prototype is available, the CFPB said it will propose a rule to specify what needs to be on statements, but creditors, assignees, and servicers will have some flexibility to tweak the form after final publication of the rule.
Read More
Americans have lost $7 trillion in home equity in the past five years, and nearly 12 million homeowners are currently underwater. The Progressive Policy Institute says these issues deserve just as much attention in the upcoming presidential election as the issue of unemployment, and in a January report, the institute offers a few suggestions to improve the housing market and ultimately, the economy at large, including shared appreciation mortgages and down payment savings accounts for first-time buyers.
Read More
We are five years through a 10-year adjustment process, Fannie Mae's chief economist Doug Duncan told attendees at the Five Star MPact Mortgage Banking Conference and Expo Tuesday morning. Dodd-Frank has 300 rules that must be implemented in the market. Regulators are only halfway through that list so far; the second half will be enacted over the next couple of years. While the market will recover, Duncan stressed that it will take time to adjust to new regulations.
Read More
While the government has recently enhanced its efforts to fight mortgage modification scams, mortgage fraud remains a prevalent issue throughout the industry. According to Jenny Brawley, associate director of mortgage fraud investigations for Freddie Mac, three elements drive mortgage fraud schemes: pressure, opportunity, and rationalization. The FBI characterizes mortgage fraud schemes as "particularly resilient" and credits them with being able to adapt to economic changes and modifications in lending practices.
Read More
Rep. Scott Garrett, chairman of the House subcommittee responsible for matters related to the nation's two largest mortgage financiers, says Fannie Mae and Freddie Mac are not only systemically dangerous to economic security, but their government-sanctioned structure is "un-American." Garrett has unveiled his plan for putting housing finance reform on the fast track by ensuring private investors are ready to take up the slack from the GSEs. The sheer dominance of the two companies, however, leads some in the industry to err on the side of caution.
Read More
Republican members of the House Financial Services Committee point to the GSEs and the Obama administration's housing programs as areas for Congress' deficit reduction super-committee to examine as it works toward cutting $1.5 trillion of the nation's debt.
A letter drafted by Chairman Spencer Bachus and signed by 20 Republican committee members first calls for an increase in the GSEs' guarantee fees and then the elimination of such programs as HAMP and HUD's Neighborhood Stabilization Program.
Read More
Speaking on behalf of the Financial Stability Oversight Council, Treasury Secretary Timothy Geithner made recommendations before the Senate Banking Committee on reforming the housing finance system. Specifically, Geithner called for establishing national standards for mortgage servicers, which the committee believes will "realign incentives and help reestablish confidence in the integrity of the housing market." Geithner also stressed the importance of reducing the government's role in the housing market.
Read More
Do you have a news tip, story idea, or suggestion for DSNews.com or DS News magazine?
Simply e-mail editor@dsnews.com.
Whether you choose to tell us a little about yourself or prefer anonymity, we appreciate your contribution!
