Law and regulation

WASHINGTON — Senate Banking Committee Chairman Richard Shelby offered a few hints Wednesday about what bankers might be able to expect from pending regulatory relief legislation due next month.

When insensitive consumer policies are implemented the result can be a costly compliance violation.

In another escalation of Quicken Loans' ongoing clash with the government, the Department of Justice on Thursday filed a lawsuit alleging shoddy underwriting by the company.

Judging by the help-wanted notice that Loretta Lynch posted last year, the freshly confirmed U.S. Attorney General intends to pick up where her predecessor left off and make lenders pay for their role in the subprime crisis.

The Federal Housing Finance Agency is sticking to its schedule and moving quickly to finalize proposed financial requirements for nonbank firms that service Fannie Mae and Freddie Mac loans.

Private-equity funds and hedge fund players have become more active buyers of mortgage-servicing rights as traditional investors withdraw from the market.

Demographic, cultural and technological changes will reshape customer service in the mortgage business over the next 30 years, a Wells Fargo executive said.

Bill Emerson, chief executive of Quicken Loans, said at a recent conference that the threat of government probes and a lack of regulatory clarity are making FHA lending less attractive.

The Consumer Financial Protection Bureau's enforcement attorneys have pulled back on new investigations in order to clear out a slew of pending cases, according to multiple current and former officials at the agency.

Federal Housing Finance Agency Director Mel Watt just made one of the biggest policy decisions of his 14-month tenure — but so far it has hardly caused a ripple on Capitol Hill.

Rep. Patrick McHenry said Democrats' resistance to passing certain regulatory relief measures is due to a leftward shift.

The message being telegraphed is consistent: lenders have been on notice to upgrade compliance and strict adherence is now expected.

Consumers may see little change in the ultimate cost of Fannie Mae or Freddie Mac loans despite a restructuring of certain loan fees announced Friday by the Federal Housing Finance Agency.

Who should hear consumer stories first, the CFPB or the financial services company already involved with the consumer?

FHFA's reduction appears likely to involve loan level price adjustments that the two government-sponsored enterprises charge borrowers and adverse market fees charged on every loan, but not a guarantee fee reduction that the industry has sought.

Despite a strong industry push, a bill to amend the Consumer Financial Protection Bureau's "qualified mortgage" rule is facing an uphill battle to enactment this year.

Rather than see TRID as a headache, think of it as an impetus to improve business performance, through broad transformation or more targeted enhancements.

Former Treasury Secretary Larry Summers, who sits on Lending Club's board, said in a speech Wednesday that such technology-focused marketplace lenders should be given a fair chance to compete.

The House approved eight regulatory relief bills Tuesday evening, including two controversial measures opposed by a number of Democratic lawmakers and the White House.

The Consumer Financial Protection Bureau issued a final interpretive rule Wednesday that clarifies its housing counseling requirements with respect to high-cost loans.