Law and regulation

Ocwen will spend the money on “principal forgiveness modification programs” for borrowers who are behind on payments or whose homes are worth less than they owe.

Sen. Barbara Boxer, D-Calif., wrote the Internal Revenue Services in August asking how they will treat California short sales after the expiration of the Mortgage Forgiveness Debt Relief Act.

A consumer advisory issued by the Consumer Financial Protection Bureau on Wednesday is stoking fears that the agency may be inadvertently encouraging borrowers to challenge their lenders in court after new mortgage rules go into effect next month.

Sixty-three percent of lenders have an electronic document solution in place, the ninth Path to Paperless survey from Xerox finds.

Freddie Mac estimates multifamily securities issuance will hit a record $28 billion this year but continued regulatory constraint could threaten future growth.

The new LoanLogics’ team is led by three experienced compliance officers whose current focus is to provide regulatory compliance and loan quality assessment services that help lenders minimize costly mortgage loan buybacks.

When addressing the QM rule, lenders face a key strategic consideration—whether to only make loans that meet the definition of a qualified mortgage or to also make loans falling outside the rule.

To satisfy the Federal Reserve Board , M&T needs to improve its risk-management program and establish processes for identifying and reporting suspicious transactions.

Exposure at FHA would be far higher than at Fannie Mae or Freddie Mac, a new study finds.

Process improvements must be identified to help alleviate future problems tied to disruptions in the government. One achievable solution ripe for consideration would be to modernize the 4506-T order transmission and tax transcript delivery capabilities at the IRS.

Banks that stick to ability to repay underwriting won’t be penalized in CRA evaluations.

The forms’ integration will be an expensive and daunting task to initially implement, but the hope is that standardization of the forms across the entire industry will normalize the process.

The guarantee fees Fannie Mae and Freddie Mac charge fail to put a price on mortgage risks in line with what the private market charges.

Dodd Frank makes clear that arbitration agreements are prohibited with consumers, but the law makes no mention whatsoever that arbitrating claims with employees is impermissible.

The Consumer Financial Protection Bureau is taking a strong stance against lenders that use contract clauses that block consumers from going to court in a report due out this week that will likely lead to new regulations.

They are accused of offering bogus assistance to consumers in need of help in paying their loans.

The largest reductions hit “sand states” that are still recovering from the housing downturn.

Origination News is looking back at the stories for 2013 which had the biggest effect on how loan officers did business. Plus, the outlook for 2014.

The plan resolves more than $100 billion in potential lawsuits.

Senate Banking Committee leaders raised objections, claiming it would make “real” GSE reform more difficult.