Risk Retention

Commenters from all sides of the housing finance industry expressed strong support for a proposed plan to align the qualified residential mortgage (QRM) definition — a key element of Dodd-Frank’s risk retention framework — with the qualified mortgage (QM) provisions established under the Consumer Financial Protection Bureau’s (CFPB) ability-to-repay (ATR) rule. Six regulatory agencies are working to implement provisions of the Dodd-Frank Act that require securitizers to retain at least 5 percent of the ... Read on »

MGIC Investment Corp. reported a $12.1 million third quarter profit, compared with a net loss of $246.9 million for the same quarter a year ago. However, the mortgage insurer warned that the amount of new insurance it writes could be adversely impacted depending on how regulators ultimately decide to structure Dodd-Frank’s qualified residential mortgage provisions. The company discussed the potential impact of Dodd-Frank’s qualified mortgage (QM) and QRM provisions in an Oct. 16 regulatory fil... Read on »

While some breathed a sigh of relief when federal regulators unveiled their risk retention rule re-proposal, others are warning the mortgage industry not to get too comfortable. Dodd Frank Update is hosting a 90-minute training webinar on Tuesday, Oct. 22 at 3 p.m. ET to inform industry participants about the important provisions of the newly proposed rule and its qualified residential mortgage definition. Read on for the details. Read on »

Regulators would harmonize two important Dodd-Frank mortgage definitions under a rule reproposal advanced by the Federal Deposit Insurance Corp. The reproposed risk retention rule would base the qualified residential mortgage definition on the Consumer Financial Protection Bureau’s qualified mortgage framework. However, the reproposal also seeks comment on whether regulators should narrow the QRM definition by imposing loan to value ratio and other standards that do not appear in the QM rule. Read on for... Read on »

Several industry groups asked federal regulators to extend the comment deadline for a new proposal that would implement Dodd-Frank’s credit risk retention provisions. The groups expressed concern about rule provisions related to the treatment of open market collateralized loan obligations (CLO), a form of securitization that promotes business lending. The rulemaking comment period is scheduled to close on Oct. 30. The groups would like regulators to extend the deadline to Dec. 9. The risk retention prop... Read on »

Mortgage industry participants and affordable housing advocates applauded a new regulatory proposal that would align the qualified residential mortgage definition — a key element of Dodd-Frank’s risk retention framework — with the Consumer Financial Protection Bureau’s qualified mortgage rule. For regulators, however, linking QM and QRM may not be as straightforward as it appears. Read on for the details. Read on »

The Federal Deposit Insurance Corp. board is soon expected to approve the release of a second notice of proposed rulemaking to implement Dodd-Frank’s credit risk retention and qualified residential mortgage provisions. The new proposal is widely expected to be less restrictive than the plan crafted by regulators in 2011. Read on for the details. Read on »

President Barack Obama tapped veteran U.S. House Democrat Mel Watt to be the permanent leader of the Federal Housing Finance Agency. The president’s announcement comes amid mounting tension over the FHFA’s stance on principle write-downs under acting Director Edward DeMarco. It also comes at a key moment for the FHFA, which is under pressure to hasten the wind down of government sponsored enterprises Fannie Mae and Freddie Mac. Read on »

The market presence of government sponsored enterprises Fannie Mae and Freddie Mac will shrink over time and a new business entity will be established under a plan outlined by the Federal Housing Finance Agency. Read on to learn what the FHFA had to say about GSE reform in its 2013 Conservatorship Scorecard for Fannie Mae and Freddie Mac. Read on »

A coalition representing consumer groups, civil rights organizations and housing finance professionals urged regulators to align the criteria underlying two important mortgage-related definitions described in the Dodd-Frank Act. The Coalition for Sensible Housing Policy said aligning the Consumer Financial Protection Bureau’s recently finalized qualified mortgage requirements with the qualified residential mortgage definition currently being crafted by a group of regulators would benefit lower income bor... Read on »