AARP, AFL-CIO, Consumer Federation of America, Center for Responsible Lending, along with scores of community activist, civil rights and religious groups are urging federal and state banking regulators to tighten underwriting standards on subprime 2/28 ARMs and protect consumers and minorities from payment shock and foreclosures.In a letter, the 80 diverse groups call on the regulators to extend the nontraditional mortgage guidance to subprime 2/28 adjustable-rate mortgages so those loans are unwritten at the fully indexed rate. "We remain concerned that millions of high-risk, unaffordable loans are not covered by the guidance and that massive payment shock built into these loans could cause a foreclosure crisis that eclipses the displacements caused by Hurricane Katrina," the Feb. 21 letter said.
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The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
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The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
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One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
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There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
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Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
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Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
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