Underwriting

Banks tighten standards on consumer, commercial loans

11/09/20

Demand trends were mixed in the third quarter, with consumers showing more willingness than businesses to take on new debt, according to the Fed’s most recent survey on bank lending practices.

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GSE exemption to stay in place until underwriting rule finished: CFPB

10/20/20

The agency confirmed that loans backed by Fannie Mae and Freddie Mac can continue avoiding debt-to-income limits as the bureau completes a revamp of the Qualified Mortgage standard.

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CFPB reverses course on marketing services agreements

10/09/20

The agency had raised concerns in the Obama administration about kickbacks in the marketing pacts between mortgage lenders and other providers, but the agency's recent guidance says the deals are legally viable.

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Will CFPB's QM proposal create new housing bubble?

10/08/20

The Consumer Financial Protection Bureau's overhaul of its Qualified Mortgage standard is alarming free-market advocates who say it will precipitate a return to easy credit and higher defaults and could disproportionately harm minorities.

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CFPB’s latest underwriting revamp seen as boon to fintechs, GSEs

09/02/20

The agency’s plan to extend the "qualified mortgage" stamp of approval to more loans could help lenders that rely on alternative data and cushion the blow of other QM changes for Fannie Mae and Freddie Mac.

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CFPB proposes a new category of 'seasoned' qualified mortgages

08/18/20

The Consumer Financial Protection Bureau says the proposal would increase access to credit, but consumer groups argue that it will encourage lenders to make high-cost loans while protecting them from legal liability.

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Housing groups seek change to FHA loan restriction on student debt

08/05/20

An industry coalition wants to ensure borrowers who took out certain types of loans to fund their education aren’t locked out of access to historically low mortgage rates.

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Lenders shouldn't waver on monitoring early payment defaults

07/30/20

The key word is "temporary" with the FHA's quality control waiver expiring and not likely to be renewed.

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BofA settles federal fair housing discrimination claim for $300K

07/24/20

Due to possible exploitation, Bank of America instituted a policy that limited loans to persons in guardianships, but later ended that policy.

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Pandemic exposes limits of lenders' traditional credit metrics

07/24/20

Lenders need to use alternative data as an overlay to traditional underwriting methods to help creditworthy customers in hardship because of the coronavirus crisis.

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