I was only 9 years old when Jan and Dean in 1963 released their hit song “Dead Man’s Curve.” I thought about this song when I read the Conference of State Bank Supervisors’ (“CSBS”) Proposed Regulatory Prudential Standards...more
12/31/2020
/ Consumer Financial Products ,
CSBS ,
FHFA ,
Financial Regulatory Reform ,
Financial Services Industry ,
Mortgage Servicers ,
Mortgages ,
Non-Bank Lenders ,
Prudential Standards ,
Regulatory Agenda ,
Regulatory Requirements
The implications of the 2020 election for structured finance are coming into focus. Informed by our discussions in Washington, we can anticipate the likely direction of federal policy over the next two years that will impact...more
12/9/2020
/ Biden Administration ,
Consumer Financial Protection Bureau (CFPB) ,
Coronavirus/COVID-19 ,
Financial Regulatory Reform ,
GSE ,
Infectious Diseases ,
Inter-Bank Offered Rates (IBORs) ,
Securities and Exchange Commission (SEC) ,
Securitization ,
Structured Finance ,
UK Brexit ,
Volcker Rule
Should US state nonbank mortgage servicers be subject to “safety and soundness” standards of the type imposed by federal law on insured depository institutions, even though the nonbanks do not solicit and hold customer funds...more
On Tuesday, September 1, 2020, the US Centers for Disease Control and Prevention (the “CDC”) filed a notice of an agency order in the Federal Register titled Temporary Halt in Residential Evictions to Prevent the Further...more
9/8/2020
/ CARES Act ,
Centers for Disease Control and Prevention (CDC) ,
Coronavirus/COVID-19 ,
Eviction ,
Financial Distress ,
Infectious Diseases ,
Landlords ,
Moratorium ,
Public Health ,
Relief Measures ,
Rent ,
Rental Property ,
Tenants
Ginnie Mae’s newly imposed restriction on repooling of reperforming forborne loans yet again penalizes servicers acting as essential service providers in the continuing efforts to protect mortgagors facing financial hardship...more
As rumored, the Consumer Financial Protection Bureau (“CFPB”) is proposing to revise its general qualified mortgage definition by adopting a loan pricing test. Specifically, under the proposal, a residential mortgage loan...more
In a new era of double-digit unemployment resulting from the COVID-19 pandemic, it may be tough for a mortgage lender to predict the amount and stability of someone’s income in order to determine qualification for a home...more
6/10/2020
/ Ability-to-Repay ,
Borrowers ,
Consumer Financial Products ,
Coronavirus/COVID-19 ,
Fannie Mae ,
Financial Services Industry ,
Freddie Mac ,
Freelance Workers ,
GSE ,
Independent Contractors ,
Mortgage Loan Servicing Standards ,
Mortgages ,
Qualifying Income ,
Underwriting
Many of you have read about the power of the president to invoke the Defense Production Act to acquire products or direct the activities of suppliers based on a finding that it is necessary for the federal government to...more
6/9/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Fannie Mae ,
Financial Distress ,
Forbearance Agreements ,
Freddie Mac ,
Ginnie Mae ,
GSE ,
Mortgage Servicers ,
Mortgages ,
Relief Measures
This week, the Federal Housing Finance Agency (“FHFA”) announced an eagerly awaited policy allowing Fannie Mae and Freddie Mac (the “Agencies”) to address one aspect of the liquidity crisis for mortgage servicers facing...more
Any day now, maybe even today, Ginnie Mae will announce the details on its Pass-Through Assistance Program (“PTAP”), through which Ginnie Mae will provide a liquidity facility for issuers that need help meeting their...more
When the federal Consumer Financial Protection Bureau (“CFPB”) last summer issued its Advance Notice of Proposed Rule Making (“ANPR”) to revise the definition of a “Qualified Mortgage” (“QM”) under the Dodd-Frank Act’s...more
2/20/2020
/ Ability-to-Repay ,
Advanced Notice of Proposed Rulemaking (ANPRM) ,
Annual Percentage Rate (APR) ,
Assignees ,
ATR-QM ,
Borrowers ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Regulatory Reform ,
Financial Services Industry ,
GSE ,
HOEPA ,
Investor Protection ,
Loans ,
Mortgages ,
Qualified Mortgage Rule ,
Qualified Residential Mortgages (QRB) ,
Regulatory Oversight ,
Regulatory Requirements ,
Risk Retention ,
Rulemaking Process ,
Securitization ,
Threshold Requirements ,
Underwriting
It is widely anticipated that the London Interbank Offered Rate (“LIBOR”) will be discontinued in 2021. As LIBOR commonly is used as an index rate for both residential mortgage and consumer loans, its discontinuance has the...more
1/30/2020
/ Adjustable Rate Financial Products ,
Adjustable-Rate Mortgage ,
Alternative Reference Rates Committee (ARRC) ,
Consumer Financial Products ,
Consumer Lenders ,
Consumer Loan Companies ,
Financial Services Industry ,
Interest Rates ,
Libor ,
Loans ,
Mortgages ,
NYDFS ,
Regulatory Oversight ,
Secured Overnight Funding Rate (SOFR) ,
Transitional Arrangements