Federal Reserve Board examiners are finally taking a peek at the subprime lending activities of consumer finance companies and mortgage banking companies that are owned by bank holding companies.These holding company affiliates originate 43% of all subprime loans, Fed Governor Edward Gramlich told the annual housing policy meeting of the Financial Services Roundtable in Chicago. Commercial banks and thrifts originate 40.8% of subprime loans. "As umbrella supervisor of financial holding companies, the Fed is instituting new procedures for monitoring the lending practices of affiliates of these holding companies, which are responsible for an important share of subprime mortgage lending," Mr. Gramlich said. The Fed issued a supervisory letter (03-22) late last year --and revised it on Jan. 8 -- that outlined new consumer compliance examinations for BHCs. A Fed spokesman said the new compliance examinations are now taking place.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24