HousingWire, May 3, 2019–Ben LaneThe CFPB this week filed a lawsuit against CreditRepair.com and Lexington Law, which the bureau claims are two of the country’s largest credit repair companies, alleging that the companies violated the Telemarketing Sales Rule by requesting and receiving payment of prohibited upfront fees for credit repair services.
Category: Top National News
Lenders Opening Doors to a Wider Swath of Home Buyers
The Real Deal, May 3, 2019–Kenneth R. HarneyAccording to the Urban Institute Housing Finance Policy Center’s latest quarterly credit availability report, mortgage lenders are reaching out to borrowers who might have been marginal–or rejectees–in the past. Lenders are increasing their appetite for at least slightly riskier applicants–people with lower credit scores, higher debt-to-income ratios, smaller down payments and other issues.
Live Well Financial Halts Funding for New Loans
Reverse Mortgage Daily, May 3, 2019–Elizabeth EckerLive Well Financial has halted fundings for new reverse mortgage loans and some loans in process, according to wholesale account executives within the company.
Homeowners Fault Government for Hurricane Harvey Damage
Wall Street Journal, May 6, 2019–Sara Randazzo, Dan Frosch (subscription)Houston area residents allege the U.S. Army Corps of Engineers knew houses were at risk and now, under eminent domain law, owe them compensation.
Adjustable-Rate Mortgages are Making a Comeback. But Are These Loans Right for You?
Washington Post, May 2, 2019–Michele LernerAdjustable-rate mortgages, known as ARMs, are back, despite having earned a bad reputation at the height of the housing crisis. Post-crisis borrowers saw them as risky because of their changing interest rates and blamed the glut of foreclosures on the inability of homeowners to handle higher payments when the loans reset.
CMBS Delinquency Rate Continues to Hit Post-Crisis Lows
National Mortgage Professional, May 2, 2019–Phil HallThe commercial mortgage-backed securities delinquency rate published by Trepp LLC reversed itself after last month’s one basis point uptick and resumed is ongoing decline in April by six basis points to a new post-recession low of 2.82 percent.
Goldman Sachs Gets Closer to Fulfilling Terms of Mortgage Settlement
National Mortgage News, May 2, 2019–Paul Centopani (subscription)Goldman forgave $85 million in principal on 819 first-lien mortgages, and $4.2 million on 30 amounts due and previously deferred first-lien mortgages during the period that has passed since its last update on March 1. Its latest contribution puts it more than three-quarters of the way to fulfilling the settlement’s terms.
Fannie Mae and Freddie Mac Release Q1 Financial Results
HousingWire, May 1, 2019–Jacob GaffneyICE is the parent company of the New York Stock Exchange and is also a provider of data and listings services; Simplifile operates one of the largest networks connecting the agents and jurisdictions that underpin residential mortgage records.
Fannie Mae’s CECL Remedy May Include More Risk-Sharing
National Mortgage News, May 1, 2019–Bonnie Sinnock (subscription)Fannie Mae is considering sharing more risk with the private sector to offset the pressure that the implementation of the Current Expected Credit Loss accounting standard could put on its earnings.
New York Launches its Own ‘Mini-CFPB’
American Banker, Apr. 30, 2019–Kate Berry (subscription)New York has created a statewide financial protection division that will focus solely on corporate compliance and consumer issues, following similar efforts by New Jersey and Pennsylvania.