Servicing

Stalled stimulus talks put bankers on edge

Executives are urging Congress and the White House to prioritize another round of help for businesses amid concerns that the continuing restrictions on reopening could lead to more loan defaults.

By Neil Haggerty

October 13

“When the full Senate returns on October 19th, our first order of business will be voting again on targeted relief for American workers, including new funding for the PPP," said Senate Majority Leader Mitch McConnell.

Election 2020

‘Enigmatic’ CFPB chief could drop more surprises in a second Trump term

Kathy Kraninger’s job status would be in question if Joe Biden wins the White House. If the president is reelected, she may continue balancing a deregulatory agenda with her unexpectedly tough stance on enforcement.

By Kate Berry

October 2

Some note a stronger consumer-focused bent may come naturally to CFPB Director Kathy Kraninger, who has appeared less political than her predecessor, former acting CFPB Director and White House Chief of Staff Mick Mulvaney.

Servicing

Fed’s Wells Fargo review should consider forbearance snafu: Warren

Customers suffered when they were placed in mortgage relief plans without their consent, the Massachusetts senator says. She urged the Federal Reserve to take the blunder into account as it weighs when to lift other sanctions against the bank.

By Kevin Wack

October 1

Wells Fargo’s letter states that the bank has received approximately 1,600 complaints from customers saying that they did not request a forbearance.

Servicing

State regulator group offers guidance for mortgage servicing oversight

The proposed best practices would be modeled after federal servicing standards and be used to supervise nonbanks firms subject to state regimes.

By Brendan Pedersen

October 1

Loan modifications

Banks criticized for requiring balloon payments on loans in forbearance

Some homeowners who sought relief as a result of COVID-19 may owe a lump sum when their forbearance period ends, according to a report from the Committee for Better Banks. The group is calling on banks to instead extend the repayment periods for affected customers.

By Kevin Wack

September 22

Loan modifications

Bankers urge extension of CARES Act reg relief

Measures designed to give banks and credit unions more flexibility to help customers weather the coronavirus pandemic are set to expire Dec. 31 unless Congress renews them.

By Neil Haggerty

September 18

Stress tests

Fed offers details on additional bank stress test triggered by COVID-19

The agency has scheduled an extra assessment of institutions' strength to incorporate more recent economic data during the pandemic.

By Hannah Lang

September 17

“The Fed’s stress tests earlier this year showed the strength of large banks under many different scenarios,” Vice Chair for Supervision Randal Quarles said. “Although the economy has improved materially over the last quarter, uncertainty over the course of the next few quarters remains unusually high, and these two additional tests will provide more information on the resiliency of large banks.”

Credit quality

Reduction in deferrals a promising sign for credit

More consumer and commercial borrowers are paying their loans, increasing the likelihood that charge-offs will be manageable for banks despite the ongoing pandemic.

By Jim Dobbs

September 11

Career moves

Flagstar promotes Lee Smith to head its mortgage business

The post was vacant since Kristy Fercho left to run Wells Fargo Home Loans in July.

By Brad Finkelstein

September 10

FHA

‘I’m a budget nerd’: How new FHA chief is confronting pandemic

Dana Wade, a former OMB official, says a strong capital footing will help the Federal Housing Administration weather an uptick in delinquencies and ensure the mortgage market is viable once the economy recovers.

By Hannah Lang

August 18