The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

In a purchase market, rookie LOs may struggle

Rookie LOs in 2020 could ride the refi wave and rack up a hefty monthly paycheck without Herculean effort. But these days, they'll have to sing for their supper.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

With a rise in natural disasters, including wildfires, hurricanes, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Politics & Money

FHFA won’t give servicers break on CFPB rule

Move clarifies how servicers should approach the month-long gap between the foreclosure moratorium expiration at the end of July, and the CFPB rule

The Federal Housing Finance Agency (FHFA) is requiring Fannie Mae and Freddie Mac servicers to follow the Consumer Financial Protection Bureau’s (CFPB) new foreclosure rule a full month before it goes into effect.

The move clarifies how servicers should approach the month-long gap between the foreclosure moratorium expiration at the end of July, and the CFPB rule, which takes effect at the end of August. Starting during that period, servicers must now adhere to the CFPB’s procedural safeguards for foreclosures.

In most cases, servicers will not be able to initiate a foreclosure until the end of the year.

The action is the first major policy move the agency has taken since Sandra Thompson, a veteran regulator who has been at the agency since 2013, assumed the role of acting director last week. Hours after a Supreme Court decision removed the restrictions on firing the FHFA director, the White House removed Mark Calabria, the agency’s previous director.

Requiring Fannie Mae and Freddie Mac to adhere to the policy is meant to protect borrowers from foreclosure and provide certainty for servicers about the GSEs expectations, the FHFA said in a press release.


Non-QM lenders, it’s time to embrace automated underwriting systems

Given the changing rules and wave of new entrants coming back into the non-QM market, it’s an excellent time for lenders to evaluate their tech stack and consider adding an automated underwriting system (AUS) to ensure compliance and expedite the origination process.

Presented by: Calyx

“Today, many families’ finances are improving allowing them to exit forbearance,” said Thompson. “The protections FHFA is putting in place today will protect vulnerable families as they begin their financial recovery from the impact of the COVID-19 pandemic.”

According to the new CFPB rule, servicers can initiate a foreclosure action only after the borrower has submitted a loss mitigation application, and either isn’t eligible for, breaks or rejects a loss mitigation agreement. Those extra steps do not apply if the borrower was already six months past-due by March 2020 or if the property is abandoned.

The rule also establishes expectations for how servicers should communicate with borrowers about loss-mitigation options. The new regulation allows escrow-shortages to be included in a loss-mitigation plan, to provide an alternative to paying excessive amounts in a short period.

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