Fitch Ratings, like Standard & Poor's, is saying "no" to rating securitizations containing high-cost Massachusetts loans because of "heightened assignee liability" stemming from the state's Predatory Home Loan Practices Act.The law, which goes into effect Nov. 7, applies to "high cost home mortgage loans" secured by a borrower's principal dwelling. It excludes reverse mortgage loans, but includes most other mortgage types such as open- and closed-end and first- and second-lien loans. The annual-percentage-rate threshold is breached if the spread above the comparable maturity Treasury security exceeds 8% for first-lien loans, or 9% for second-lien loans. A loan would also be classified as a high-cost mortgage if its total points and fees exceed 5% of the total loan amount or $400, whichever is greater, Fitch said. A "safe harbor" is allowed, and the purchaser must have a policy in place that prohibits the purchase of high-cost home mortgage loans. The seller must exercise reasonable due diligence at the time of purchase of the loan.
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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.
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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.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
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