Links in “Lending”

GSEs spell out their rules for purchasing loans after January 10, 2014: only loans that are fully amortizing, have terms of up to 30 years, have points and fees that are no more than 3% of the total loan amount, have a maximum debt-to-income ratio of 45%, and have verification of borrower’s income source and amount. [8/22]

Most credit unions offer risk-based pricing for some or most of their consumer loan products.  However, many are not pricing their risk tiers in manner that ensures cost recovery. [8/20]

South Dakota Supreme Court remanded a cased against CUNA Mutual and Black Hills Federal Credit Union to a lower court for class action certification; lower court had originally denied class action certification for the plaintiffs who claim that the CUNA Mutual and the credit union improperly raised the premium payments on their closed-end home equity loans. [8/20]

NY Attorney General joins crackdown on three online lenders and their owners, alleging they have made nearly 18,000 loans to New Yorkers totaling $38 million in principal since 2010, on which the borrowers owe more than $185 million in finance charges. [8/13]

Appeals court finds that homeowners who were denied a modification under the Home Affordable Modification Program (HAMP), even after completing a trial period plan, have legal standing to sue their lender, Wells Fargo. (See also this article.) [8/12]

NAFCU and ABA argue that expanding act to cover other types of credit may make it increasingly difficult to prudently offer credit to servicemembers. [8/5]

Credit union will give Illinois legislators—whose salaries were vetoed out of the budget in a tiff with governor—zero-interest loans worth half their paychecks. [7/31]

Guidance on workout arrangements on Student Loan Borrowers that meets Safe and Sound lending practices. [7/25]

At a hearing before the Senate Banking Committee, Carol Galante, commissioner of the Federal Housing Administration, requests more authority to allow FHA to transfer servicing of some loans to specialty servicers and voices aversion to the bill’s demand for mandatory premium increases when FHA’s capital reserve ratio dips below its required level. [7/25]

CFPB tackles array of Regulation X and Z mortgage rule topics including tough DTI calculation issues on ability to repay (ATR) and prepayment on higher-priced mortgage loans (HPMLs). Exclusions on construction and bridge loans provided on ATR and prepayment penalties.[7/24]