Were it not for a slip-up at the Consumer Financial Protection Bureau, employees in the mortgage business might have had to forfeit their summer vacations.
New mortgage disclosure rules from the CFPB were set to take effect Aug. 1 and many lenders were far from being ready. Luckily for them, the CFPB was forced to extend the deadline by two months after the agency missed its own deadline for filing paperwork with Congress.
As of two months before the deadline, nearly 80% of banks were still awaiting technology upgrades from their vendors, according to the American Bankers Association. Even if the upgrades are made quickly, banks still need time to test and learn the new systems, says Bob Davis, an executive vice president at the ABA.
“Full confidence in the new systems may not come until months after the effective date,” he says.
The change the CFPB is making […]
Citigroup failed one of the monitoring tests performed as part of the national mortgage settlement, according to new reports filed by NMS monitor Joseph Smith A. Jr.
During the third quarter of 2014, Citigroup failed Metric 30, which assesses written communication with borrowers whose loan modification applications were declined because of missing or incomplete documents. Citigroup was the only financial institution to fail a test during the third and fourth quarters of last year, according to the monitor’s report.
Bank of America, JPMorgan Chase, Green Tree and Wells Fargo all passed their tests during this period of time, Smith said.
Following its failed test, Citigroup submitted a Corrective Action Plan for the metric, which Smith approved. After it was implemented, Smith said that the fourth quarter’s round of testing showed that the problems were cured.
“Citi remains committed to fulfilling the terms of the national mortgage settlement for […]
Purchases of new homes rose in May to the highest level in seven years, signaling the industry is gaining momentum heading toward the second half of the year.
Sales climbed 2.2% to a 546,000 annualized pace, exceeding all forecasts in a Bloomberg survey of economists and the most since February 2008, Commerce Department data showed Tuesday in Washington. Readings for February through April were revised up.
Stronger employment and income prospects are bolstering would-be home buyers, allowing them to take advantage of relatively cheap borrowing costs even as home prices appreciate. The sales gains indicate residential real estate should withstand increases in borrowing costs as the Federal Reserve prepares to start tightening policy later this year.
“People are feeling more secure about their jobs, and when you’re feeling more secure about your job, you’re more likely to put down roots and buy a home,” Mark […]
Almost seven years after the financial crisis, bond investors are rediscovering their appetite for new debt tied to the U.S. housing market.
Issuance of home-loan securities that don’t have government backing has accelerated this year to more than $32 billion from $18 billion a year ago, according to data compiled by Bloomberg and Bank of America Corp. This time around, investors are mainly buying types of bonds that weren’t around when the debt helped spark the crash, such as securities tied to defaulted mortgages and rental homes.
The recovery in housing is luring investors back to a market that unraveled amid soaring defaults and tumbling home prices. The revival is helping to reduce taxpayers’ risks and boost the profits of private-equity firms, real estate investment trusts and hedge funds — and is poised to do more to aid home buyers.
“The market’s healing,” said Chris […]