Compliance

Amid growing scrutiny of how the hand-off of mortgages is managed after loan closings and bulk sales, servicers are working to automate the entire process to create a consistent and accurate onboarding experience for borrowers.

Despite dire predictions by banks and others that new mortgage rules by the Consumer Financial Protection Bureau would cut off access to credit, the industry is performing well two years after the regulations went into effect, according to the agency's top official.

Meaningful rules encouraging Fannie and Freddie to do more with manufactured housing would allow more lenders into the market and make pricing more competitive.

Bank mortgage originations were up 7% in the fourth quarter of 2015, while the number of Federal Deposit Insurance Corp.-insured institutions that deal primarily in mortgages dropped more than 9% from a year ago.

The affordable housing market has dried up in major cities across the country. In response, regulators and lenders are looking into new programs to get people back into single-family homes while also exploring ways to encourage multifamily developments.

Law enforcement authorities raided the headquarters of United Mortgage Trust in Grapevine, Texas, on Feb. 18, seeking documents related to the company's management.

With the stakes so high for compliance officers, their rights and responsibilities should be clearly defined, including a safe harbor for those who play by the rules.

The Department of Housing and Urban Development will provide $40 million in grant money to organizations that provide counseling to prospective homebuyers.

The Consumer Financial Protection Bureau acknowledges that gearing up for the Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosures has been tough, and it promises to consider that fact in exams.

The decision in Yvanova v. New Century Mortgage Corp. has the potential to radically increase the number of lawsuits brought by borrowers, particularly on loans that were pooled into securitized trusts.

Federal Housing Finance Agency Director Mel Watt stopped short of calling for Treasury to recapitalize the government-sponsored enterprises, but said "something needs to be done" before they run out of capital.

Mortgage servicers are actively discussing with regulators how current rules could be streamlined, and future rules could be shaped, to minimize costs and hassles.

A public interest coalition is calling on bank regulators to declare the drinking water contamination in Flint, Mich., a "disaster" and encourage lenders from around the country to extend credit to the area in order to counteract the damage.

The mismatch between demand for new homes and the supply threatens to drive up prices and dampen lending.

The Federal Home Loan Bank of New York posted an increase in fourth-quarter profit, citing higher levels of member prepayment.

New York Gov. Andrew Cuomo has launched a new initiative, called the Fair Housing Enforcement Program, aimed at targeting discrimination in rental and home sale transactions.

There is concern that a decline in condo pricing could create loan problems similar to those that cropped up before the financial crisis. Bankers in the area, however, believe foreign investors would take the biggest hit.

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The cost of capital and regulatory compliance has convinced the top four banks that making home loans to American families is not worth the risk.

The Chicago, Des Moines and Cincinnati FHLBs have grown their life insurance company membership the most in recent years.