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Posts Tagged ‘financial institutions’

Committee Chair Spears CFPB

January 11th, 2013 Comments off

The House Financial Services Committee tells MHProNews that Committee Chairman Jeb Snarling, in his response to the Consumer Financial Protection Bureau (CFPB)’s Qualified Mortgage and Ability to Pay rules, says the CFPB has an impossible, dangerous mission and that attempted solutions may have unintended consequences. He asserts, “ Impossible because the CFPB is a big government bureaucracy in Washington attempting to determine which mortgages are appropriate for 100 million Americans, each of whom have their own personal circumstances that the CFPB knows nothing about. Dangerous because the CFPB has been given vast, unprecedented and unchecked power, all delegated to a single director whose alleged recess appointment by the President is legally questionable.” Noting it was government policies that encouraged financial institutions to loan people money to buy homes they could not afford, now it is government regulations telling them “not to do what the government was telling them to do before.” He says the committee will closely watch financial institutions to determine their ability to compete as well as their impact on consumers’ ability to access credit, especially in smaller markets.

(Image credit: House Financial Services Committee)

CFPB Region Director Could be Watching You

January 8th, 2013 Comments off

OriginationNews reports the person who helped plan staffing, enforcement and direction of the Consumer Financial Protection Bureau (CFPB) is now the regional director of the West Region office of the agency in San Francisco, covering 18 western states including Alaska, Hawaii and Guam. Edwin L. Chow is responsible for consumer protection and supervisory activities of regulated depository financial institutions with assets over $10 billion, and also in charge of non-depository financial services companies, supervising staff and managers in those locales. Consumer complaints against mortgage companies can now be filed on-line with the CFPB, and the company has 15 days to respond, at least to the CFPB. Lack of a response could bring the heat of investigation from the Bureau. Commissions for the loan originator (LO) are a fixed percentage based on the loan amount, with a focus on the best deal for the customer rather than the best percentage for the lender and/or the LO. MHProNews has learned that as of Jan. 28, FHA-approved lenders and LOs must provide accurate, timely and complete and pertinent company identification information to the FHA; and lenders need to regularly  review and update TPO (third-party origination) information in the Sponsored Originator Registry. How the agency will define Qualified Mortgages is yet to come.

(Image credit: Federal Housing Administration)

Testing, Testing…

December 14th, 2012 Comments off

HousingWire reports the Consumer Financial Protection Bureau (CFPB) wants banks to test run some of the mortgage disclosures for consumers required by the Dodd-Frank Wall Street Reform Act before forcing them to fully comply, an idea attractive to the market. This collaborative approach will inform consumers on making good decisions, and solicit industry input during the trial run for how best to deliver the new procedures and processes. MHProNews has learned these trial balloons with select institutions, called Project Catalyst, will also provide safe harbor during the test period for lenders. Says Rick Sharga of Carrington Mortgage Holdings, “Reaching out to practitioners to create in-market trial programs that benefit consumers and work better for financial institutions is a win/win.”

(Image credit: totalmortgage)

China Backing Major U.S. Housing Project

December 13th, 2012 Comments off

The World Property Channel reports China is backing the development of 20,500 homes in San Francisco to the tune of $1.7 billion, a development project at two former naval bases that will hire 5,000 over a six year period. Borrowing the money is Miami-based Lennar Corp.; terms were not disclosed. Hunters Point Naval Shipyard will receive $1 billion to build 12,500 homes, and 8,000 homes will be built at Candlestick Point at Treasure island for $700 million. The total build out is expected to take 20 years. Although a Lennar spokesman would not confirm the transaction, a property editor at the San Francisco Times says the general contractor will be China Railway Construction Co., which is the world’s second largest contractor, and that the China Development Bank has tentatively approved the loan. All parties hope to seal the deal before year’s end because the Foreign Account Tax Compliance Act goes into effect Jan 1. It requires disclosure compliance agreements with the U.S. Treasury for foreign financial institutions. MHProNews has learned from the Military Analysis Network that Hunters Point, which closed as a naval base in 1994, is a toxic waste dump and the target of a lawsuit alleging 19,000 violations of the Clean Water Act.

(Photo credit: Wikipedia–Hunters Point Naval Shipyard)

 

 

NADA MH Cost Guide Going Digital

November 21st, 2012 1 comment

After 40 years in print form, the NADA Manufactured Housing Cost Guide is finally going digital. MHProNews has been informed NADAguides Manufactured Housing CONNECT digital solution will allow community owners, dealers, and insurance and financial institutions to determine the value of inventory as well as portfolios. Accessible from any device connected to the internet, the software will print valuation reports and transfer information to a spread sheet for documentation. Data will be updated six times a year. Sherrie Clevenger, Managing Editor of NADAguides, says, “Taking the printed Cost Guide 100% digital through NADAguides Manufactured Housing CONNECT allows us to improve the data in ways that were only a dream in years past.” May through August 2013 will be the final printed edition of the cost guide. For more information about NADAguides Manufactured Housing CONNECT, go to www.nadaguidesstore.com, or call 800.966.6232.

(Image credit: NADA Guides)

Kelli B. Nelson, new MHI Director of Government Relations

October 1st, 2012 Comments off

Richard Jennison, President and CEO of the Manufactured Housing Institute (MHI) has announced the appointment of Kelli B. Nelson as the new Director of Government Relations. Her responsibilities will include promoting the manufactured housing agenda to Congress and the executive branch, as well as directing MHI policy and utilizing state association contacts with members of Congress in furthering MHI legislative priorities. Formerly a Senior Legislative Assistant/Financial Services Policy Advisor to Rep. Donald Manzullo (R-Ill), Ms. Nelson was staff member of the House Financial Services Committee, including the Subcommittee of Financial Institutions and Consumer Credit. Jennison said, “Her experience working on Capitol Hill, coupled with her working knowledge of the House Financial Services Committee, will add significantly to our legislative team and our effectiveness in advancing issues key to the manufactured housing industry.” MHProNews has learned Rep. Manzullo is co-chair of the House Manufacturing Caucus.

(Image credit: Manufactured Housing Institute)

S&P says Dodd-Frank may cost Big Banks $34 Billion annually

August 14th, 2012 Comments off

Dodd-Frank Cartoon posted in MHProNews.com

ComplianceWeek tells MHProNews about a new report, “Two Years On, Reassessing the Cost of Dodd-Frank for the Largest U.S. Banks,” Standard & Poor’s Ratings Services (S&P) updated its prior estimate of what new regulations may cost Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, PNC Financial Services, U.S. Bancorp, and Wells Fargo. It says these “large, complex” institutions “will bear the brunt of the financial impact.” Dodd-Frank Act could reduce pretax earnings for these eight mega-banks by $22 billion to $34 billion annually. The previous estimate was $19.5 billion to $26 billion. S&P credit analyst Matthew Albrecht stated, “Considering what we know now about rules and regulations that have yet to be implemented, and based on our current forecasts for banks’ capital and earnings, we don’t believe the financial impact of regulatory reform will, in itself, affect our ratings on the eight large U.S. Banks.” Albrecht added, “However, proposed rules and regulations could change our assessments of banks’ business or risk positions, which could ultimately lead to rating actions in isolated cases.” MHProNews notes that small to mid-sized financial institutions also have their challenges and concerns about the costs of the regulatory and compliance burdens they face as a consequence of Dodd-Frank. ##

(Graphic credit: Mountainseed-Dodd-Frank Cartoon)

Anti-money Laundering: MHI’s Templates can Benefit non-bank Lenders

July 30th, 2012 Comments off

MHProNews has learned from the Manufactured Housing Institute, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), which is charged with coordinating anti-money laundering rules covering over 100,000 financial institutions and businesses that may be utilized to support criminal enterprises, has instituted a new Anti-Money Laundering Program (AML) for anyone considered to be a residential mortgage loan originator. FinCEN’s Feb. 14, 2012 “Anti-Money Laundering Program and Suspicious Activity Report (SAR) for Residential Mortgage Lenders and Originators” requires lenders and /or originators to comply with the new rule by Aug. 13, 2012. In order for non-bank lenders, such as retailers and land lease communities to comply with the rule, MHI directed its attorneys at McGlinchey Stafford to develop templates for an AML/SAR Program. You can find those resources as free downloads at the end of the article linked here .

(Image credit: FotoSearch)

MHI Testifies at Dodd-Frank Hearing

July 12th, 2012 Comments off

Speaking for the Manufactured Housing Institute (MHI) at a hearing on the impact of Dodd-Frank mortgage requirements before the House Financial Services subcommittee on Financial Institutions and Consumer Credit Wed. July 11, Tom Hodges, General Counsel for Clayton Homes, suggested Congress create a secondary market for manufactured home buyers so all residential borrowers will have access to the same products. Drawing more lenders to the market would create more competition and lower financing charges, he said. He also urged Congress to avoid any regulation that would be a barricade to lenders’ ability to make manufactured housing loans. His role at Clayton, the largest producer of manufactured homes in the country,  includes implementation of Dodd-Frank and other regulations. For the full transcript of his testimony, please click here.

(Photo credit: Pine Grove Mfg. Homes)

MHARR: Rep. Bachus, Lawsuit, Challenge Dodd-Frank

June 22nd, 2012 Comments off

The Oklahoma Manufactured Housing Association (OMHA) and the Manufactured Housing Association for Regulatory Reform (MHARR) reports House Financial Services Committee Chairman Spencer Bachus (R-Ala), in commenting on a lawsuit challenging the constitutionality of Dodd-Frank, says the Consumer Financial Protection Bureau (CFPB) is a massive governmental bureaucracy without adequate checks and balances, concentrating too much power in the hands of a single director who can spend his budget without oversight. MHARR points out the CFPB director has control over which financial products and services are available to consumers, currently crucial to the manufactured housing industry. Legislation co-sponsored by Rep. Bachus would: Establish a five-member commission to run the agency; create a review process to determine the affect of rules on financial institutions; and ensure the commission chair is Senate-confirmed. For MHARR’s full report, click here.

(Photo credit: realclearpolitics)