Law and regulation

More than a year after the CFPB revamped its employee rating system following allegations of discrimination Equal Employment Opportunity complaints have surged and the agency faces ongoing accusations of bias and retaliation against workers who speak out.

The decline in foreclosures and short sales is contributing to the dearth of housing inventory, complicating the prospects for home buyers feeling the pinch of tight credit and lenders that need purchase mortgages to supplant refinancing once interest rates rise.

Several House lawmakers joined the call Thursday for a formal grace period for new mortgage disclosures that would go beyond an earlier decision by the Consumer Financial Protection Bureau.

More than a dozen housing groups are urging lawmakers to pass legislation that would grant lenders a formal grace period for implementing new disclosure forms later this summer, arguing that the industry needs greater certainty than the Consumer Financial Protection Bureau has so far provided.

The Consumer Financial Protection Bureau's "qualified mortgage" rule has put a damper on the recovery of the housing market, according to an American Bankers Association survey.

How interested banks, REITs and other investors will be in replacing the Federal Reserve as buyers of mortgage-backed securities insured by government-related entities depends on a wide range of regulatory and economic factors.

The regulatory burden for originators has not only been the main driver of acquisition activity in mortgages but also influences deal structures. Acquirers are looking to craft transactions so they don't get burned by targets' compliance lapses.

PHH Corp. has been ordered to pay $109 million over allegations that it illegally accepted kickbacks on reinsurance premium payments after Consumer Financial Protection Bureau Director Richard Cordray partially overruled a decision previously made by an administrative law judge.

The Consumer Financial Protection Bureau issued a consumer advisory on Thursday warning older consumers about misleading advertisements promoting reverse mortgages.

The CFPB gave little ground in its pledge Wednesday to be "sensitive" to lenders that make a "good-faith effort" to comply with new mortgage disclosure rules that go into effect in August. The agency's statements fell short of a formal grace period that the industry and lawmakers had been demanding.

Rep. Edward Royce, R-Calif., urged fellow House members Wednesday to support a Senate proposal that would make significant reforms to Fannie Mae and Freddie Mac.

As nonbank lenders continue to grow their stake in the mortgage industry, researchers from the Harvard Kennedy School argue that regulatory reforms should come to lower the risk associated with these institutions.

Hundreds of lawmakers from both sides of the political aisle are pushing for the Consumer Financial Protection Bureau to grant a grace period for banks, credit unions and other lenders to comply with a new mortgage disclosure rule.

Barclays dismissed mortgage-bond trader Yoon Seok Lee over claims that he lied to clients.

Fannie and Freddie's profits depend on having their obligations backed by the U.S. Treasury. Therefore they should have to pay a sensible price for this backstop — just like big banks.

Nonbank servicers selling and buying Fannie and Freddie MSRs must meet new capital and liquidity requirement to transfer servicing.

The Financial Stability Oversight Council is encouraging mortgage agencies to continue clarifying when lenders must repurchase defective loans.

The proposed legislation for regulatory relief seeks to roll back critical mortgage protections put in place to prevent another housing crisis.

Critics of the regulatory relief bill proposed by Sen. Richard Shelby argue that will endanger the financial system and benefit big banks. But in fact, the changes offer sensible, nonpartisan fixes to some of the biggest problems with the Dodd-Frank Act.

The Rural Housing Service should merge with the Federal Housing Administration to save money and improve service, the head of the Government Accountability Office testified Tuesday.