Government

Now that the industry has its long-awaited ""qualified mortgage"" (QM) definition, Fitch Ratings believes jumbo prime securities are poised to see a jump start. While many analysts anticipate a kick start in lending and securitization now that the rules are clear, Fitch asserts most of the underwriting guidelines suggested have already been put into practice since the financial crisis. However, the ratings agency sees the QM definition as a boon for the jumbo prime market.

The Missouri Eastern District Court of Appeals allowed for an injunction to halt a St. Louis County ordinance that requires banks to notify borrowers of their right to mediation before facing foreclosure.

When Treasury issued the Troubled Asset Relief Program (TARP) in October 2008, it designated $45.6 billion for mortgage-related programs. However, a little more than four years later, when a few of the non-mortgage TARP programs have drawn to a close, more than $40 billion in mortgage relief remains unspent, according to a report from the Government Accountability Office (GOA).

1st Regents Bank, of Andover, Minnesota, became the country's second FDIC-insured institution to collapse in 2013, the FDIC announced Friday.

While the Home Affordable Refinance Program (HARP) has undergone some tweaks and changes to broaden eligibility, a petition is seeking to make the program available to more underwater homeowners and to allow homeowners to refinance under the program more than once. The petition specifically states, ""We Petition the Obama Administration to: Make a formal request to the FHFA to eliminate the securitization cut off date for HARP eligibility and allow re-HARPing."" As of January 21, the petition has received more than 800 signatures.

HSBC is the latest bank joined in on the foreclosure settlement with federal regulators over allegations that the bank's practices led to wrongful foreclosures. The Federal Reserve Board and Office of the Comptroller of the Currency (OCC) announced HSBC will pay $249 million, with $96 million for direct payments to eligible borrowers and $153 million for mortgage assistance.

Amid concurring opinions from industry analysts that the housing market hit bottom last year and is now in gradual recovery mode, the nation's debt ceiling debate brings unwelcome uncertainty. The Center for American Progress (CAP) argues vehemently that neglecting to raise the debt ceiling would be detrimental to the housing recovery and the nation's economy as a whole. ""Not raising the debt ceiling quickly and unconditionally is economic malpractice that could derail a modest economic and jobs recovery,"" said Christian E. Weller, senior fellow at CAP.

While the foreclosure crisis has more than one culprit, the Center for Responsible Lending (CRL) pointed to the significant role of predatory lending practices in a report on the state of lending. According to data from CRL, among hybrid or ARM option loans originated between 2004 and 2008, 24.7 percent are either seriously delinquent or have become completed foreclosures as of February 2012. To prevent loan originators from directing borrowers toward risky mortgages, the Consumer Financial Protection Bureau issued new rules Friday to ban incentives for selling risky mortgages.

Starting in January 2014, mortgage lenders will work under new rules governing the handling of appraisals and other home value estimates. The Consumer Financial Protection Bureau (CFPB) announced Friday the adoption of a new rule intended to improve consumer access to appraisal reports. The new rule implements requirements under the Dodd-Frank Act that state that lenders must give consumers a copy of each appraisal free of charge. A lender generally may still charge a reasonable fee for the cost of conducting the appraisal.

The disagreement over the nation's borrowing limit took a back seat to gun control and perhaps lost some urgency when House Republicans floated the idea of a temporary extension, which would do what Washington seems to be famous for--kicking the can down the road. But, the controversy and its impact on the nation's financial credibility demands a solution that will last for more than just a few months. Just a week after unveiling new rules for mortgage originations, the Consumer Financial Protection Bureau stepped up its game by turning to the other end of the mortgage business, collecting on loans.