Law and regulation

The Supreme Court has agreed to consider a case related to the use of disparate impact theory to charge organizations with discrimination under the Fair Housing Act.

Federal prosecutor Loretta Lynch may soon replace Attorney General Eric Holder, leaving bankers wondering whether she will be tougher on institutions than her predecessor.

Industry observers have mixed reactions on whether next year's Republican-controlled Congress will finally address long-stalled efforts to reform Fannie Mae and Freddie Mac.

The Consumer Financial Protection Bureau has made some key changes to its compliance guide for the three major mortgage rules that took effect earlier this year.

The Consumer Financial Protection Bureau will be scrutinizing the new cadres of mini-correspondent lenders to make sure they aren't just "captive" arrangements to get around broker compensation rules.

Borrowers must have other factors such as housing counseling, stronger credit histories, or lower debt to income ratios to qualify for new low-down-payment loans, said FHFA Director Mel Watt.

Washington-based Fannie Mae, which has been under federal conservatorship for six years, had net income of $3.9 billion for the three months ended Sept. 30, according to a regulatory filing Thursday.

Freddie Mac will return $2.8 billion to the Treasury Department next month, bringing its total payments to about $20 billion above what it got in aid after the 2008 credit crisis.

The recent dip in mortgage rates isn't likely to spur a refi boom, but with the industry now into the fourth quarter of a tough year, many lenders are looking for ways to boost business.

A U.S. District Court decision this week that blocked the use of a controversial legal theory in a fair housing case on discrimination has ignited industry hopes that the Supreme Court will take a similar stance on a separate, larger case pending before the high court.

Some industry observers believe a CFPB pilot program may do what technology advances and e-commerce advocates have failed to accomplish for more than a decade: spark widespread adoption of e-closings.

Industry veteran David Applegate will serve as CEO of Common Securitization Solutions LLC, the new firm co-owned by Fannie Mae and Freddie Mac to develop a common securitization platform for the mortgage secondary market.

During the past week, consumer and industry groups have lobbied the agency in different directions, with consumer groups arguing the agency did not go far enough and lenders saying it went too far in seeking more data from lenders.

Although this is a benefit to lenders who make a mistake in calculating points and fees, it does not address problems associated with a lack of clarity in the rules.

Lenders could face tougher enforcement and higher penalties if they make errors on the new mortgage disclosure forms that are slated to go in effect next August.

Federal Housing Finance Agency Director Mel Watt has struck a conciliatory tone, seeking lenders' input and making loan-buyback rules more industry-friendly — a clear signal the administration thinks it needs bankers' help to reignite the tepid housing recovery.

Wide-ranging efforts to reform Home Equity Conversion Mortgage lending and servicing practices are designed to close loopholes and resolve policy inconsistencies, but some obstacles remain unresolved and more work needs to be done.

The Supreme Court is slated to hear arguments Tuesday in a case that could determine when and how borrowers are allowed to cancel their mortgages.

The court asked another governmental entity to remedy the plight of non-borrowing spouses facing foreclosure. So far options appear to give few consumers relief.

The Federal Reserve said it sees further improvement in the labor market while confirming it will end an asset-purchase program that has added $1.66 trillion to its balance sheet.