Mortgages

WASHINGTON — The House Financial Services Committee voted 45 to 19 late Tuesday to approve mortgage reform legislation that largely mirrored a bipartisan deal unveiled this week by Rep. Barney Frank, the panel's chairman, and Rep. Spencer Bachus, its lead Republican.

WASHINGTON — In reaction to the ongoing crisis in the mortgage markets, the Office of Thrift Supervision has launched a campaign to become the chief federal regulator for nonbank mortgage companies.

WASHINGTON — On Capitol Hill the name of the game on mortgage reform legislation is "Let's Make a Deal," and for now that game seems to be tipping in the financial services industry's favor.

WASHINGTON — It has become a standard defense for industry representatives to claim a bill or regulation they oppose would result in the loss of credit to certain types of people.

WASHINGTON — Philosophical divides among regulators on how to root out issues that led to subprime mortgage problems came to a head at a House Financial Services Committee hearing Wednesday as agency principals split on support for reform legislation.

WASHINGTON — House Financial Services Committee Chairman Barney Frank put speculation over the details of his mortgage reform bill to rest by introducing legislation to create new standards for all mortgage originations, require new underwriting standards, and hold securitizers liable for poor loans.

WASHINGTON — A bill by House Financial Services Committee Chairman Barney Frank to revamp mortgage standards would leave the Federal Reserve Board off the list of regulators that would write rules to implement it, according to financial services and consumer advocacy representatives given a sneak peek this week.

WASHINGTON — The subprime mortgage crisis and the ensuing credit crunch have led to tighter lending practices in several regions, according to a Federal Reserve Board report released Wednesday.

WASHINGTON — Treasury Secretary Henry Paulson called Tuesday for tougher mortgage standards, including uniform national licensing of brokers, but he left unclear whether he was prepared to support legislation to overhaul lending standards.

WASHINGTON — Approximately 1.1 million foreclosures are expected in the next six to seven years due to aggressive lending practices, fluctuating home prices, and the rise of the securitization model that allowed lenders to significantly lower underwriting standards, according to a Government Accountability Office report expected soon.

WASHINGTON — The hallmark of Sen. Chris Dodd's chairmanship of the Senate Banking Committee has been a focus on the subprime mortgage fallout, but if the Connecticut Democrat is serious about eradicating lending practices he says precipitated the surge in foreclosures, he has a long haul ahead.

WASHINGTON — A united call from Democratic leaders on Capitol Hill for the Bush administration to step up its handling of the mortgage crisis appeared to be more about political maneuvering than a substantive outline of a new plan, industry analysts said Wednesday.

WASHINGTON — Sen. Hillary Clinton, the frontrunner for the Democratic presidential nomination, is expected to introduce a mortgage reform bill soon that tightens underwriting standards, enhances broker regulation, and sets aside more than $2 billion towards foreclosure prevention, affordable housing and mortgage fraud prosecution.

WASHINGTON — House Financial Services Committee Chairman Barney Frank’s approach to crafting legislation aimed at toughening standards for mortgage underwriting and lending practices is garnering the unlikely acceptance of the financial services sector.

WASHINGTON — Nearly every policymaker jumped into the fray last week with some kind of action related to the subprime housing crisis. The Federal Reserve Board cut interest rates; the Office of Federal Housing Enterprise Oversight eased caps on the mortgage portfolios of Fannie Mae and Freddie Mac; Treasury Secretary Henry Paulson shifted the White House stance on the government-sponsored enterprises; and the House and the Senate Banking Committee passed a Federal Housing Administration reform bill.

The Federal Reserve's bailout of the subprime follies of financial institutions by cutting interest rates this week may help the industry continue, without due diligence, to roll the dice on unduly rosy outcomes.

WASHINGTON — The Senate Banking Committee approved a bill Wednesday that would reform the Federal Housing Administration, and the bipartisan vote of 20 to 1 signals the legislation is likely to pass the full Senate soon.

WASHINGTON — The congressional response to the subprime mortgage crisis continued to evolve Wednesday as Sen. Charles Schumer said he would introduce legislation to give borrowers a simple, one-page form outlining the structure of their home loan.

The House approved legislation 348 to 72 that lawmakers on both sides of the political aisle said would give low- and moderate-income homeowners an alternative to subprime mortgages and help struggling borrowers.

WASHINGTON — The Department of Housing and Urban Development is close to completing a new proposal to overhaul enforcement of the Real Estate Settlement Procedures Act, according to sources.