Compliance & Regulation

To move quality control earlier into the origination process, lenders should rely on automated data checks

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 Consumer Financial Protection Bureau remains committed to working with the financial services industry to improve the mortgage closing experience for consumers through the use of technology, CFPB director Richard Cordray said.

The commitment by the two housing giants marks a win for upstart VantageScore Solutions in its quest to compete against industry leader Fair Isaac Corp. However, the outcome of the review is uncertain, and Fannie warned that the costs of adopting new credit scores might prove to be "substantial" for lenders and others.

The loosening of mortgage credit "hasn't been as significant as some have reported," and first-time buyers remain scarce, complains Stuart Miller of homebuilder Lennar.

All the mistakes and errors in a loan file should be dealt with prior to the mortgage funding.

A regulatory mechanism designed to support unsolicited ratings includes obligations that complicate its use. Post-crisis single-family securitization sectors like the new rental market are instead drawing "unsolicited comments."

Home loans to lower-income Americans are dwindling as Washington regulators and major banks continue to haggle over who pays when riskier mortgages go bad.

Mortgage insurers agree that the FHFA's capital-retention proposal would offer more clarity than the existing regulatory framework, but they share concerns about the treatment of single-premium policies, risk requirements and other details.

Essent Guaranty in Radnor, Pa., is now an approved insurer of mortgage loans sold to Federal Home Loan Banks.