Risk Management Archive
By obtaining a third-party opinion that provides a reasoned analysis supporting borrowers' ability to repay, a lender places itself in a substantially stronger position with respect to subsequent ATR claims.
While lenders do not survey applicants on sexual orientation for their Home Mortgage Disclosure Act reports, a look at the data on same-sex couple applicants is intriguing.
The Consumer Financial Protection Bureau last week quietly issued over $70 million in fines to entities which have been through private settlements without specifying why. Here are some likely causes.
Last month, BMO Harris Bank changed policies on auto lending to pay a flat percentage of the loan amount to auto dealers making loans (sound familiar?).
The mortgage life support provided by the federal government since the crash is ebbing. It will be interesting to see if the industry can breathe on its own now.
Credit card telemarketers allegedly went off script in describing the benefits and charges of credit protection plans to coax consumers into receiving them. The move has implications for loan officers.
What might work better would be clarifying guidance on mortgage insurance premium rules, the meaning of bona fide discount points, and the rules for affiliate compensation.
A roundup of comments on our Editor at Large blog, from the best and brightest to the not-so-bright.
The proposed federal mortgage guarantor in the Senate reform bill needs 5% hard equity to protect taxpayers, but 10% capital to pass Congress, the Housing Policy Council's John Dalton reckons.
The Senate GSE reform bill may bloat the bureaucracy, encourage risky behavior and expose taxpayers to losses, without sufficient support for affordable housing. That could still be better than nothing.
Lenders and Realtors are hailing a new law that delays flood insurance premium increases, but unless the government takes actuarially prudent measures, rising sea levels could cost taxpayers dearly.
The Consumer Financial Protection Bureau prohibits actions aimed at circumventing loan officer compensation rules. One example was a lender who permitted teams of LOs to share commissions.
The CFPB report for full year 2013 shows that there were over 160,000 complaints to the bureau from homeowners, of which 60,000 were complaints about the mortgage process.
Charlie Keating, who died Tuesday, epitomized an era today's mortgage lenders would do well to remember as low-yielding portfolio assets tempt them to take bigger risks.
The lender can experience problems selling a loan that loses qualified mortgage rule's protection. The lender also could be stuck in a vulnerable position if that loan ultimately defaults.