Compliance & Regulation

The ratings agency plans to assess deals based on representations and warranties as well as an analysis of an independent third-party review of data quality and an originator assessment.

Wall Street is running into resistance unloading commercial-mortgage backed securities. After overlooking deteriorating underwriting standards for months, investors are becoming more selective as geopolitical turmoil sparks a flight from risky assets.

Though there is still a year for mortgage lenders to get in compliance with the Consumer Financial Protection Bureau's document changes, the perils of missing that deadline are considerable.

Amerisave Mortgage Corp. and its owner have been ordered to pay more than $20 million for allegedly overcharging borrowers and trapping them in higher interest rates than those advertised.

The Federal Housing Finance Agency provided its first specifics Tuesday on how it intends to create a single security for mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

Even though refinance loans account for the majority of mortgage applications, the refi boom has long been over, and depressed origination volume will keep it that way for some time.

Ocwen Financial Corp., the largest nonbank mortgage servicer, said investors shouldn't rely on its financial statements for 2013 and the first quarter of this year as the firm’s auditor reviews accounting controls.

Hawaii plans to sell $150 million in taxable bonds in November to fund a program to provide low-interest loans targeting residents with poor credit or low income who want to install energy savings devices like solar panels on their homes.

Fitch Ratings may decline to rate or limit the maximum rating on re-performing securitizations if their representations and warranties, rep providers, documentation, due diligence reviews and structures aren't up to snuff.

The overall message – that mini-correspondents were intended as transitions, not permanent business models – means that the loan channel would be examined for consistency with the intended purpose.