Join our mailing list: 
Archive for January, 2013

FHA Announces Imminent Reforms to Rebuild Capital

Federal Housing Administration commissioner Carol Galante announced Wednesday a series of changes to be issued this week that will allow the agency to better manage risk and strengthen its anemic Mutual Mortgage Insurance (MMI) Fund. The announced changes include consolidating FHA’s reverse mortgage program, raising of mortgage insurance premiums, and requiring borrowers to continue paying annual insurance premiums for the entire life of their mortgage loans.

For the full article, please click on the link below.

Banks with Assets Over $5 Billion Undergoing CRA Exams – Quarter 1, 2013

The Community Reinvestment Act (CRA) states that banks have an affirmative obligation to meet the credit and capital needs of low- and moderate-income communities where they do business. Federal regulators are responsible for ensuring that banks are meeting that obligation through CRA exams, which scrutinize a bank’s lending and community development performance.

 As an organization that works for the benefit of low- and moderate-income communities, we have a unique – and vital – role in ensuring that lenders serve those communities. Regulators that examine banks are required to consider public comments about a bank’s performance in their overall assessment. During these comment periods, community-based organizations can submit comment letters that detail a bank’s responsiveness to community needs, which the regulators must look at and can have a big impact on what the bank must do to invest in your community.

Below please find the list of financial institutions who will undergo CRA Exams in the First Quarter of 2013. Please email if you would like assistance in the submission of your comments.


Banks with Assets Over $5 Billion Undergoing CRA Exams – Quarter 1, 2013  
Bank Name Regulator Service Locations Regional Organizer to Contact  
Washington Federal OCC Arizona, Idaho, New Mexico, Nevada, Oregon, Texas, Utah, Washington AZ, NV, OR, UT, ID, NM, TX, WA (Torey Hollingsworth)  
Mercantil Commercebank, National Association OCC Florida, New York, Texas NY (Caitie Rountree), FL (Ramon Bullard), TX (Torey Hollingsworth)  
Capital Bank, National Association OCC Florida, North Carolina, South Carolina, Tennessee, Virginia FL, SC, VA, NC, TN (Ramon Bullard  
RBS Citizens, National Association OCC Connecticut, Delaware, Illinois, Kentucky (loan processing) Massachusetts, Michigan, New Hampshire, New York, Ohio, Pennsylvania (cyber office), Rhode Island, Vermont CT, MA, NH, RI, DE, NY, VT, PA (Caitie Rountree) MI, IL, OH, KY (Makia Burns  
Citibank, National Association OCC California, Connecticut, Washington DC, Delaware, Florida, Illinois, Massachusetts, Maryland, New Jersey, Nevada, New York, Ohio, Pennsylvania, Puerto Rico, South Dakota, Texas, Virginia, Washington CA, TX, WA, NV, SD (Torey Hollingsworth), IL, OH (Makia Burns), FL, PR, DC, VA, Guam (Ramon Bullard), DE, MA, NJ, CT, MD, NY, PA (Caitie Rountree  
Banco Popular de Puerto Rico Federal Reserve Puerto Rico, Virgin Islands PR, Virgin Islands (Ramon Bullard  
Arvest Bank Federal Reserve Arkansas, Kansas, Missouri, Oklahoma AR, KS, MO, OK (Torey Hollingsworth  
East West Bank Federal Reserve California, Georgia, Massachusetts, New York, Texas, Washington CA, TX, WA (Torey Hollingsworth) GA (Ramon Bullard) MA, NY (Caitie Rountree  
Emigrant Bank FDIC New York NY (Caitie Rountree  
Northwest Savings Bank FDIC Maryland, New York, Ohio, Pennsylvania MD, NY, PA (Caitie Rountree) OH (Makia Burns  
First Hawaiian Bank FDIC Hawaii, Guam, Northern Mariana Islands HI (Torey Hollingsworth) Guam, Northern Mariana Islands (Ramon Bullard)  
Glacier Bank FDIC Colorado, Idaho, Montana, Utah, Washington, Wyoming CO, ID, MT, UT, WA, WY (Torey Hollingsworth)  
American Express Centurion Bank FDIC Utah UT (Torey Hollingsworth  
CIT Bank FDIC Utah UT (Torey Hollingsworth)

Check ‘n Go borrowers eligible for $4.3 million in refunds

San Francisco City Attorney Dennis Herrera’s office has launched a three-month statewide drive to refund $4.3 million to California consumers who obtained four-month installment loans online between Nov. 2006 and June 2008 through the websites:,, and To be eligible for repayment, borrowers must mail a claim form and a copy of the required form of identification to the settlement administrator, postmarked by March 28, 2013

Herrera is urging potential claimants who think they may be qualified for restitution to visit, email or call for more information: 

(Toll Free) 1-855-581-2350 

The 90-day refund program is among the terms of an agreement City Attorney Herrera negotiated with the payday lender last June to settle litigation filed in 2007 by Herrera’s Consumer Protection Unit. The litigation involving the Check ‘n Go loan settlement is: People of the State of California ex rel. Dennis Herrera v. Check N’ Go of California, Inc., et al. (San Francisco Superior Court Case No. CGC-07-462779).

The Federal Housing Administration: Unsung Hero of the Housing Market

Despite helping to save the housing market following the mortgage crisis in 2007, the FHA is continuously attacked, erroneously, for its commitment to encourage lending to low income households.  

To read the full article, please click on the link below.

CFPB Announces Rules to Reform Originator Compensation

Hours after issuing guidelines to govern appraisal disclosures, the Consumer Financial Protection Bureau announced more new rules designed to shape up origination practices. The new regulations prohibit what the bureau calls “steering incentives,” such as compensating originators based on loan terms. Under the rules, brokers and loan officers cannot get paid more if the consumer takes a loan with a higher interest rate, a prepayment penalty, or higher fees.

For more information, please click on the link below.

FICO Study Reveals Rising Demand for Credit

According to a recent study from FICO, U.S. banks expect an end to the household deleveraging trend observed among consumers during the past five years. The company’s latest quarterly survey revealed that bankers are anticipating an uptick in customers’ demand for credit. Additionally, results showed that the majority of respondents “believe the supply of financing for auto loans, credit cards, new mortgages, small business loans, student loans, and mortgage refinancing will meet or exceed consumer demand over the next six months.”

Read more by clicking the link below.

CFPB Releases Qualified Mortgage Criteria, Establishes Legal Protections

After many long months of waiting, the Consumer Financial Protection Bureau (CFPB) has finally issued its finalized “qualified mortgage” (QM) rule designed to protect both consumers and responsible lenders. One of the biggest provisions of the QM rule is the newly set Ability-to-Repay rule, which does away with so-called “no doc” and “low doc” mortgages. In addition, the CFPB explained there are two kinds of QMs that have different protective features for consumers and legal consequences for lenders.

Read more by clicking the link below.

Report: BofA Planning to Unload Another $100B in Servicing Rights

After announcing Monday the sale of nearly $306 billion in mortgage servicing rights (MSRs) on 2 million loans, Bank of America might be looking to unload a little more. Reuters first reported Tuesday that the bank is planning to sell rights on at least another $100 billion of mortgages. BofA is likely to announce more MSR sales in the next several weeks, according to two unnamed sources who spoke to Reuters. Sales of servicing rights have become more prevalent as costs rise and servicers fall to bankruptcy, leaving hungry institutions to purchase their MSRs.

For the full article, please click on the link below.

Will 2013 Bring Declining Originations and Rising Interest Rates?

As we delve into the new year, many wonder what lies ahead in the mortgage industry. According to one mortgage lender, we can expect declining originations, rising interest rates, and fewer mortgage professionals. Residential mortgage origination volume will decline 24 percent this year, largely driven by significant declines in refinances, according to Total Mortgage Services, LLC. The mortgage lending company foresees a 16 percent rise in purchase originations offset by a sharp decline in refinances.

For more information, please click on the link below.

JPMorgan Seeks Dismissal of Task Force Securities Suit

It’s been months since New York Attorney General Eric Schneiderman filed suit against JPMorgan Chase over faulty mortgage-backed securities (MBS), but the bank is now coming out of its own corner swinging. Attorneys for the bank filed a motion to dismiss in early January, arguing that because Schneiderman brought his claims under the Martin Act (an article granting the attorney general increased power to combat financial fraud), they are subject to a three-year statute of limitations that has already elapsed.

For the rest of this article, please click on the link below.