Risk management

Servicers got what they asked for when the Consumer Financial Protection Bureau limited the specificity of certain requirements in its final servicing rule. Now they may regret it.

Impending rules allow sponsors of commercial mortgage bonds to satisfy a requirement to keep "skin in the game" of their deals by selling the risk of first loss to a designated third party.

Under pressure from regulators to beef up risk management in commercial real estate lending, banks are using new software tools to improve analysis.

When the limits on two of Bill Johnson's credit cards were lowered from $20,000 to $6,000, his outstanding balances jumped from a perfectly acceptable 20% to a dangerously high 66%.

Fannie Mae and Freddie Mac could need as much as $126 billion in bailout money from taxpayers in a severe economic downturn, according to stress test results released by their regulator.

Fair market value adjustments to mortgage servicing rights will continue to put downward pressure on earnings throughout the rest of 2016, according to Kroll Bond Rating Agency.

Fannie Mae earned $2.9 billion in the second quarter, a step up from its first-quarter earnings, but Chief Executive Timothy Mayopoulos reiterated warnings about future volatility.

The Consumer Financial Protection Bureau's proposal Friday updating its mortgage disclosure rule did not give lenders what they wanted: an ability to correct errors after a loan has closed and a release from liability for technical violations. But the 293-page proposal did provide revisions that will help in compliance and the closing of more loans.

Loan application defect risk continued its downward slide in June, according to First American Financial Corp.

The CFPB updated its "Know Before You Owe" mortgage disclosure rule to provide more clarity to lenders. It has proposed additional tolerance provisions, clarified a partial exemption for housing finance agencies, extended the rule's coverage to all cooperative units, and provided more clarity about privacy and the sharing of information.