Two Washington consultants are predicting that federal banking regulators will issue final guidance on interest-only and payment-option adjustable-rate mortgages "pretty much" as originally proposed back in December, despite industry opposition to the proposal.Karen Shaw Petrou and Basil Petrou, managing partners of Federal Financial Analytics, told a Bank of America mortgage conference that the final nontraditional mortgage guidance will be out by mid-October. "Importantly, it will cover not only originations, but also sales to the secondary market -- a boon, we think, for Fannie Mae and Freddie Mac's declining market share, since lenders will return to more conventional, conforming loans," Ms. Petrou said. The new guidance also frowns on piggyback mortgages, "especially when the second is layered into a high-risk mortgage product," she said. In addition, banks and thrifts should expect to see strong enforcement of the new underwriting and disclosure guidance, according to the FFA partners.
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Government officials confirmed the California Democrat is under scrutiny over a long-held Maryland property he designated as a second home in 2020.
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Credit availability declined in June as the job market and rising delinquency figures have some lenders concerned, the leading mortgage trade group said.
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The Ocean State is the latest to enact rules prohibiting the agreements that end up tying older homeowners to long-term contracts with real estate brokers.
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House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
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