Cordray Dispels Ability-to-Repay Myths
The head of the Consumer Financial Protection Bureau said that some rumors circulating about the Ability-to-Repay rule are just not true. He said that loans can still be made to borrowers with debt-to-income ratios that exceed 43 percent.
Underwriting Standards to Ease on RMBS Loans
Next year will see a slow return for non-agency residential mortgage-backed securities, while underwriting standards will be relaxed. Borrowers on loans not designated as Qualified Mortgages will pay more than QM borrowers.
Non-QMs Present More Risk for RMBS
Home loans that don't carry a Qualified Mortgage designation will present more risk for loan securitization trusts, though the degree of additional risk will depend on the originator and the strength of the representations and warranties.
FHA Extends Recertification
Some Federal Housing Administration mortgagees will have more time to file their annual recertifications because a key system won't be ready on time.
CFPB Updates Exam Procedures
New procedures have been published that reflect new mortgage rules and what mortgage firms can expect from compliance examinations.
FHA Handbook in Works
A new handbook being developed for the lending process on single-family loans insured by the Federal Housing Administration promises to make it easier for mortgagees to do business with the agency.
Wealth of Services to Help With QM Compliance
Several mortgage industry service providers are eager to help home lenders comply with the Qualified Mortgage rules, which go into effect in less than two months.
Implementation Ahead for Key Mortgage Disclosures
A final rule is being issued on a pair of key forms that will be required at the outset of the home lending process and just prior to a mortgage closing. The new forms, which replace two sometimes conflicting disclosures, go into effect in less than two years.
Freddie Updates Underwriting Requirements
Among several guideline updates announced by Freddie Mac are enhanced quality control tracking, fraud training requirements for third-party vendors and requirements for the Ability to Repay rule. Also addressed are higher-priced loans, credit verifications and refinances.
M.I. Updates Accommodate QM Requirements
New updates to mortgage insurance premiums will help mortgage lenders comply with new rules that become effective in two months.