Student borrower protection bill on verge of passage in California
The legislation, which would apply to both banks and nonbanks, would give borrowers the right to sue for damages when servicing violations occur.
Nonbank
Non-qualified mortgages are coming back, but with tighter guidelines
The new reality for investors and originators accounts for forbearances and ability-to-repay.
California’s ‘mini-CFPB’ plan is back in play. Banks aren’t happy.
A proposal to expand consumer protections in the state was added to a budget bill after being dropped in June. Financial institutions say the measure conflicts with federal law and are working behind the scenes to stop it.
States’ lawsuit alleges OCC rule enables ‘rent-a-bank’ schemes
The complaint filed by New York, California and Illinois argues that the regulation, issued in response to the 2015 Madden decision, undermines state laws intended to protect consumers.
SoFi applies to open a national bank
If it’s approved, the charter is expected to lower the fintech’s cost of funds and allow for more product offerings. It comes nearly three years after SoFi pulled the plug on an earlier effort to open an industrial bank.
5 ways mortgage companies may be able to maintain liquidity
Nonbank servicers have been seeking more sources of cash since the coronavirus disrupted markets and elevated forbearance rates. These are some strategies they may be able to use.
OCC finishes rule meant to sidestep ‘Madden’ ruling
The new regulation is intended as a workaround for banks affected by the 2015 decision that created legal uncertainty for loans sold across state lines.
Cash-out refis dry up as price hikes prove too costly
Mortgage lenders have imposed steep pricing adjustments for cash-out refinancing as more borrowers seek forbearance.
Mnuchin says U.S. has no plans for mortgage servicer lifeline
The Treasury secretary said recent government moves will help the firms get through the risk of millions of borrowers missing their loan payments.
As coronavirus strains mortgage servicing, co-issuing gets tougher
Lenders that split their sales of loans and servicing between two different investors may be facing yet another challenge due to the coronavirus outbreak.
MBA fires back at FHFA head’s incendiary comments
Mark Calabria needs to be working to secure a Fed facility for servicer advances and to support, not denigrate, smaller servicers, the Mortgage Bankers Association said.
Ocwen gives liquidity update on potential servicing advances
Ocwen Financial has approximately $749 million of liquidity from various sources to deal with servicing issues arising from the coronavirus, a company press release said.
Does FSOC have a role to play in coronavirus response?
After budget cuts and a strategic transition, the interagency body conceived by Dodd-Frank to identify systemic threats has largely been silent as the pandemic roils the economy.
Nonbank mortgage group calls for guidance on coronavirus forbearance
Mortgage servicers need direction from federal agencies on how to implement the forbearance plans called for in the CARES Act, according to the Community Home Lenders Association.
Virus scare creates perfect storm for mortgage lenders
Refinancing activity is surging, existing borrowers are inquiring about loan modifications, loan closings are being delayed by more complex credit checks — and banks are short on people to handle it all.
Virus could deal blow to leveraged loans. What’s that mean for banks?
Banks may be protected from a direct hit, but they have invested in vehicles that include such loans, potentially exposing them to defaults.
Coronavirus volatility to test mortgage industry’s funding models
Mortgage companies that borrow heavily to keep their operations running may face financial pressure from coronavirus-related market volatility as it affects the valuations of collateral securing their financing.
End of a New Residential subservicing agreement to benefit Ocwen
The cancellation by New Residential of a money-losing subservicing agreement should benefit Ocwen's financial results going forward, the company said.
FHFA singles out Ginnie MSRs in tightening counterparty requirements
The Federal Housing Finance Agency plans to increase liquidity standards for nonbank conforming loan servicers, and at the same time raise the net worth requirements for those that also perform the function for Ginnie Mae.
FHA wants banks back. Updating servicing could be the answer.
Despite changes by the Federal Housing Administration, bankers remain reluctant to join the program for fear of legal liability. But that could change if it revamps servicing processes, experts say.
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