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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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18