American Banker, Apr. 15, 2019–Hannah Lang (subscription)The proposal that the Fed drafted jointly with the Federal Deposit Insurance Corp. would tailor the requirements based mostly on institution size. U.S. banking companies with assets of between $100 billion to $250 billion would be exempted from submitting a resolution plan entirely, while larger firms could submit plans less often.
Category: Top National News
Trump’s Tax Overhaul Is Curbing Housing Activity, Fed Researchers Say
Bloomberg, Apr. 15, 2019–Shelly HaganPresident Trump’s tax reform is likely having a negative effect on the housing market, according to a newly published study by researchers at the Federal Reserve Bank of New York.
GE to Pay $1.5 Billion Fine over Subprime Mortgage Misdeeds
MarketWatch, Apr. 12, 2019–Andrea RiquierGeneral Electric will pay a civil penalty of $1.5 billion over subprime mortgage loans, the Department of Justice said Friday. WMC Mortgage, a GE subsidiary, and GE itself “misrepresented the quality” of the loans made by WMC, as well as the quality controls of GE’s mortgage bonds, the DOJ said in a filing.
Warren, Tillis Looking to Enforce GSE Salary Caps
American Banker, Apr. 12, 2019–Neil Haggerty (subscription)Sens. Elizabeth Warren, D-Mass., and Thom Tillis, R-N.C., have introduced the Respect the Caps Act, which would explicitly bar Fannie and Freddie from transferring or delegating any duty or responsibility to the chief executive officer to any other position. It would also allow for the Federal Housing Finance Agency director’s removal if it approves compensation greater than the cap of $600,000 a year, which was signed into law in 2015.
How Far Will the CFPB Go to Modernize Debt Collection Rules?
American Banker, Apr. 14, 2019–Kate Berry (subscription)Debt collectors and trade groups that have met with CFPB Director Kathy Kraninger said the bureau will look at developing regulatory policy for modern communication practices including text messaging and emails that were not invented when the Federal Debt Collection Practices Act went into effect.
Non-QM Lending on the Rise with Two More Lenders Expanding their Offerings
HousingWire, Apr. 11, 2019–Ben LaneBorrowers who do not fit into the Qualified Mortgage box now have an increasing number of options when it comes to finding a lender willing to help them buy a home.
CEOs of 7 Mega Banks Challenged by House Committee
Washington Post, Apr. 10, 2019–Renae MerleOne by one, the leaders of seven of the country’s largest banks told skeptical House Democrats on Wednesday that a decade after the global financial crisis, the industry is financially healthier and less risky.
Mortgage Fraud Risk is Growing and Lenders Can’t Be Caught Off Guard
National Mortgage News, Apr. 10, 2019–Bridget Berg (free article)The author, with CoreLogic, says home price gains and fewer loans in the marketplace are putting additional pressure on originators, possibly leading to riskier behaviors to maintain volumes.
Caliber Home Loans Fined for Allegedly Steering…
HousingWire, Apr. 10, 2019–Ben LaneCaliber Home Loans will pay a $2 million fine and hand out an unknown number of mortgage modifications to borrowers in Massachusetts to settle allegations that the company steered struggling homeowners into risky mortgage modifications.
House Flipping Is Back to Pre-Crisis Levels. Here’s Why It’s Less of a Concern
Wall Street Journal, Apr. 9, 2019–Laura Kusisto (subscription)House flipping is back to nearly the same level it was around the 2006 peak of the housing boom, when it became a symbol of the rampant speculation that soared before the bubble burst. But a new analysis from CoreLogic Inc. suggests most of the current flips are less risky than those more than a decade ago, making today’s flippers less likely to cause market volatility if prices decline in the next few years.