Careful underwriting can take away much of the risk of this supposedly risky type of mortgage lending and contribute to profitable new business.
The DOJ wants the banks it threatens with litigation to admit accountability, pay hefty penalties and takes steps to satisfy the public thirst for payback. But the financial system would be better served if the bulk of regulation was left to the banking agencies.
This shows that the Consumer Financial Protection Bureau will hold a company responsible for the actions of a third party, regardless of intent, if a consumer is negatively affected.
Proposals in Congress to change the structure of the government-sponsored enterprises Fannie Mae and Freddie Mac seem to be languishing in this election year.
The Consumer Financial Protection Bureau's complaint database is an excellent source of information to help lenders make adjustments and refine their operations.
The U.S. Attorney General seeks to lift a cap on whistleblower incentives that encourage a practice increasingly used in mortgage-based claims even as another U.S. official presses for more lending.
The Federal Housing Administration raised mortgage insurance fees during the financial crisis in order to cover a wave of defaults. Now that the housing market has steadied, the agency should adjust its policies.
Another important concern when it comes to the safety of borrowers' home loan information is physical location. There have been many physical loan files stolen, as well as computers.
A plea for the Federal Housing Administration official to finish clarifying the rights of spouses unnamed on Home Equity Conversion Mortgages before she leaves office.
Common sense underwriting, a regulatory system that abides by contract law, and borrowers who consider homeownership a privilege, not an entitlement, make Canada perfect for private -label residential mortgage-backed securities.
Allegations lenders failed to lend in certain geographic areas that are racially or ethnically diverse are mounting.
Not every distressed borrower can, will or should get a modification. But in cases where they make sense, mod decisions should be swift and significant.
In less than one year, the new RESPA/TILA integrated disclosure final rule will take effect, impacting all aspects of lenders' origination processes and technology.
The time has come for residential private-label mortgage-backed securities in Canada, but the market will look nothing like the United States'.
Such a system will not erase past violations, but it can help convince a regulator that a lender is invested in doing business the "right way."