Can Wall Street take loan mods to scale? Is this really an opportunity to do it better? On the one hand, plenty of servicers appear to be slow on the uptake. Yet doing that will be depend a great deal upon the availability of housing counselors. Those counselors handle the details of their borrower's paperwork. Housing counseling agencies are finding it more and more difficult to keep their doors open.
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A new draft of a proposed mortgage insurance policy from the Federal Housing Finance Administration (FHFA) could have dramatic impacts upon the availability of conventional home mortgage financing for lower-wealth American households.
Another proposal for GSE reform has percolated from Capitol Hill. The new plan, proposed by three Democratic Congressmen, falls to the right of Corker-Warner but just slightly to the left of Jeb Hensarling's intentions. But it is still only one of several plans, each of which has its own set of constituents.
Here are the main contenders:
Note: Part One is here
JS: We’re back, talking to Richard Cordray, from a bureau whose name I have forgotten already. I do understand that it business regulation can become onerous. Red tape and bureaucracy can be a drag, especially on a small business. Are you doing anything to make lean regulation, smart regulations, in that
We have Richard Cordray, He is the Director of the Consumer Financial Protection Bureau.
(Note, Part Two of the interview is available here.)
JS: You are in of the Consumer Bureau of commerce and alcohol tobacco and firearms. What is the name of your organization?
While there may be truth to the suggestion put forth in some reports which surmise that the appointment of Thomas Perez to lead the Department of Labor heralds the resuscitation of the disparate impact theory, it is more likely that the rise of Big Data in underwriting will be the force that drives a thousand nails into its coffin of its close brother the disparate treatment theory.
When he was at the Department of Justice, Perez negotiated an agreement with the City of St.
GSE Reform: One analyst suggests that anyone investing in Fannie or Freddie right now is making two bets: one that the GSEs will remain profitable, and two that real GSE reform is not going to happen any time soon.
Senator Bob Corker has introduced a bill that would leave shareholders with nothing: "If Treasury were
While a shutdown would mean that the Federal Housing Administration will suspend new guarantees of mortgages, it probably won't change things very much.
FHA guaranteed loans are very important right now. FHA and VA constituted approximately one-third of new mortgages up in 2010, and most of that was from FHA. FHA raised its premiums and this dampened the appetite for those loans.
The FDIC established a new rule that will make it much harder to get a conventional loan without putting twenty percent down.
Dodd-Frank established an expectation that securitizers will have to retain more risk in home mortgages that they sell, providing that some loans could be exempted if they met a