Mortgage lenders have been making "stated income" loans for years, but the Federal Reserve is starting to have concerns about banks that fund loans without requiring the borrower to provide proof of income.Speaking at an American Law Institute-American Bar Association meeting Thursday morning, Federal Reserve Governor Susan Schmidt Bies also said regulators are concerned about low teaser rates on adjustable-rate "exotic" mortgages, including interest-only and payment-option loans. Asked by a reporter whether these products are a huge concern, Ms. Bies said no, but that the Fed is worried about how the products are being marketed to consumers. She told the ALI-ABA gathering that "to make sales happen faster" lenders are "lifting mitigating controls." The Fed and other regulators have issued proposed guidance on exotic mortgages, but final guidance will not come until after the comment period ends on Feb. 27.
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Elevated delinquency levels have not affected expected losses, however, due to home price appreciation, Fitch Ratings said.
6h ago -
Retail lenders, including Beeline, Tomo Mortgage and Rocket Mortgage, settled with the department over infractions like submitting a false certification to not having the proper liquidity to be in the program.
6h ago -
A pair of bills, one with bipartisan support, look to address the issues around heirs' property so these families can have clear title on their homes.
6h ago -
The agreement, in which the real estate giant admits no wrongdoing, will cover around 70,000 agents.
9h ago -
Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25