Rising interest rates and home prices and a recently passed job creation act may spur a big increase in the issuance of home equity lines of credit in the residential mortgage-backed securities sector, according to Fitch Ratings."HELOCs were not able to be securitized using a REMIC structure, as each additional draw was considered a new loan prior to the passing of the American Jobs Creation Act of 2004, which went into effect Jan. 1 of this year," said Andrea Murad, a Fitch director. "The jobs act addresses the revolving nature of a HELOC that allows borrowers to draw on their lines, after the loan has been securitized." The analysis was published in the latest edition of Mortgage Principles and Interest, the rating agency RMBS newsletter. Fitch can be found on the Web at http://www.fitchratings.com
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The RMBS notes benefit from geographic diversity and credit enhancement.
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A Consumer Financial Protection Bureau "waives any alleged noncompliance" by the mortgage company while continuing to dole out redress to borrowers.
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Refinance apps made up more than 40% of all mortgage applications last week, driving an uptick as consumers seek out cheaper mortgage payments.
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The chairman and regulator of Fannie Mae and Freddie Mac pointed to Jermone Powell's recent testimony about renovations to the Federal Reserve's headquarters.
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It's a rare theft of trade secrets complaint by the industry leader, which stayed out of the spate of litigation between competitors during the refinance boom.
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Navy Federal Credit Union will not pay a $15 million fine or $80 million in restitution to service members who were illegally charged surprise overdraft fees when their accounts had sufficient funds.
July 2