Compliance & Regulation

Among the many hurdles any return of the private-label securitized market will likely have to overcome are conflict of interest measures in Section 619 of Dodd-Frank and the Volcker Rule, which as noted in a recent American Securitization Forum seminar, are hitting some key deadlines this month and next year.

The Consumer Financial Protection Bureau's authority to finalize an "ability to repay" standard for lenders is being questioned, a situation that likely will slow efforts by other regulators working on a rule that exempts certain high qualify mortgages from risk retention.

Congress has handed the Federal Housing Administration a golden opportunity to increase its share of the jumbo mortgage market, but HUD secretary Shaun Donovan doesn’t want to exploit the situation.

Fannie Mae recently told its seller/servicers that all mortgage insurance rescissions, cancellations and claim denials tied to loans it bought must be reported to the agency immediately.

An industry hedge fund that selectively trades distressed mortgage assets is testing the use of borrower rewards for timely payment, with the aim of driving better performance, refinancing or modifications.

Just seven months ago, Democrats appeared to be boxed in, unable to confirm a leader to the Consumer Financial Protection Bureau without agreeing to demands from Senate Republicans to overhaul the agency's structure.

The federal government should create an entirely new secondary market agency for "high quality" private mortgages that would replace Fannie Mae and Freddie Mac, according to Sen. Johnny Isakson, R-Ga.

The Mortgage Bankers Association, in a new comment letter, strongly urges the government not to change the current GSE servicing compensation model, shooting down a FHFA proposal that would pay loan processors $10 per month for performing loans.

The Senate this week passed a six-month extension of the National Flood Insurance Program and supporters are hopeful the House will act quickly to prevent any disruption in the issuance of new policies.

Attorney General Eric Holder this week appointed Michael Bresnick as the new executive director of President Obama's financial fraud enforcement task force, which includes mortgage oversight.