Senate Banking Committee Democrats are prodding the Federal Reserve Board and the other banking regulators to issue subprime guidance on adjustable-rate 2/28 and 3/27 mortgages as quickly as possible.In a May 17 letter, Banking Committee Chairman Christopher J. Dodd, D-Conn., and four other senators urge the regulators to put aside their concerns that tighter underwriting standards will make it difficult for trapped subprime borrowers to refinance. "Frankly, we find this objection as an admission that the original subprime ARM was inappropriate," the letter says. "It stretches credulity to argue that the path out of a poorly underwritten loan is another unaffordable loan underwritten on the same faulty basis." The proposed guidance requires lenders to underwrite subprime ARMs at the fully indexed and fully amortizing rate. The senators note that the Mortgage Bankers Association, along with major lenders and servicers, has adopted principles to pursue loan modifications if borrowers cannot afford their payment after the ARM resets. "These kinds of modifications offer a real alternative to foreclosure for borrowers, and we urge you to encourage servicers to pursue this course of action," the senators say.
-
While income decreased from the fourth quarter, it accelerated on an annual basis across NVR's building and lending units.
2h ago -
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
3h ago -
Prevention through new building standards and mapping technology aim to keep home insurance rates down but mortgage bankers see challenges.
9h ago -
The mortgage lender and servicer announced that Ranjit Bhattacharjee, a capital markets veteran, and Kevin Barker, a financial analyst with two decades of experience, have joined its ranks.
10h ago -
Because of rising home values, more transactions have proceeds over the federal tax exemption, especially in California, a CoreLogic study found.
April 23 -
Texas Capital Bank wants to bring the Administrative Procedures Act into the case, but Ginnie Mae said the legal proceedings are outside its scope.
April 23