"Whenever you see 'consumer relief,' it is usually investor money," says Vincent Fiorillo, global sales manager at DoubleLine Capital LP in Los Angeles.
These investors complain they get little say or direct recompense in government settlements with big banks over misrepresentations of mortgage securities like the Department of Justice's $7 billion deal with Citigroup.
Under the Consumer Financial Protection Bureau plan, lenders would need to respond to virtually every public complaint — even those by consumers, disgruntled employees, and competitors that abuse this forum.

THE MORE, THE MERRIER: "To the extent there is another entrant providing liquidity, we would expect better pricing," says Donavon Ternes, at Provident Savings Bank in Riverside, Calif.
The Federal Home Loan Bank of Chicago is launching a pilot program soon to buy home loans and issue Ginnie Mae securities. The program could allow community banks and credit unions to stay in the mortgage business.

OTHER THAN THAT…The mortgage interest deduction is "regressive, inefficient, expensive," says Sheila Crowley.
A nonprofit housing group has found an ambitious middle ground between those who oppose any change to the mortgage interest deduction untouched and those who say it must go.

"We always cautioned our members against becoming mini-correspondents," says Marc Savitt.
The Consumer Financial Protection Bureau says brokers will have to comply with compensation limits even if they are funding loans via a warehouse line of credit.

Julian Castro, who has served as San Antonio's mayor, is expected to focus on community planning and development issues at HUD. But the FHA's fragile finances will be a difficult issue to ignore.
Julian Castro, who was confirmed as the new secretary for housing and urban development, is bound to face continued industry lobbying to lower premiums paid to the Federal Housing Administration.
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