Retained Interest

An Analysis of Structured Finance, Financial Assets and Related Topics

Blog Authors

AB C D E F G HIJ K L M N O PQR S T U V WXY Z

Shahrukh Abbasi

John R. Ablan

Ravi Amin

James J. Antonopoulos

Christopher Arnold

Latest from Retained Interest

Retained Interest

Ginnie Mae Restricts Long-Time Legitimate Business Activity of Mortgage Servicers

By Laurence E. Platt

July 11, 2020

Ginnie Mae’s newly imposed restriction on repooling of reperforming forborne loans yet again penalizes servicers acting as essential service providers in the continuing efforts to protect mortgagors facing financial hardship due to COVID-19. In issuing APM-20-07 on June 29, 2020, Ginnie Mae decided to further protect investors from the potential enhanced prepayment risk resulting from early pool buyouts of forborne loans. This protection, however, comes at the expense of servicers. By restricting servicers from relying on long-standing,…

Retained Interest

Recommendations for developing the EU securitisation market – Report by the High Level Forum on Capital Markets Union

By Merryn Craske, Neil Macleod, Robyn Llewellyn & Jaime Lad

July 1, 2020

A recent report, entitled “A New Vision for Europe’s Capital Markets” (the “Report”), sets out some key recommendations for how the EU securitisation market can be scaled up. The Report has been published by the High Level Forum on the Capital Markets Union (the “HLF”) which was established by the European Commission (the “Commission”). The recommendations cover some key areas of interest for market participants. Background Capital Markets Union has been an important part of…

Retained Interest

Volcker Rule Revision Complete: Easing the Compliance Burden for Banks

By Carol A. Hitselberger, Arthur S. Rublin, Ryan Suda & Sagi Tamir

June 28, 2020

On June 25, 2020, five federal financial regulatory agencies published the long awaited Final Revisions to the Volcker Rule (the “Final Revisions”) which revise certain aspects of the Volcker Rule (Section 13 of the Bank Holding Company Act) with respect to the identification and treatment of covered funds. The Final Revisions follow three years of the agencies’ consideration of changes to the Volcker Rule, originally prompted by the June 2017 Treasury Report that solicited changes…

Retained Interest

Federal Housing Agencies and GSEs Announce Updates to COVID-19 Relief Measures for Mortgage Loan Borrowers

By Krista Cooley, Kerri Webb & Daniel Pearson

June 22, 2020

In recent weeks, the US federal housing agencies and government-sponsored enterprises (GSEs) that insure, guarantee, or purchase “federally backed mortgage loans” covered by Section 4022 of the CARES Act (Act) have continued their intense pace of issuing temporary measures, and updates to such measures, intended to implement the Act’s provisions applicable to such loans. These actions aim to provide assistance to mortgage loan borrowers facing financial hardship in connection with the COVID-19 outbreak during and…

Retained Interest

CFPB Hatches a QM Proposal for GSE Patch

By Laurence E. Platt & Kris D. Kully

June 22, 2020

As rumored, the Consumer Financial Protection Bureau (“CFPB”) is proposing to revise its general qualified mortgage definition by adopting a loan pricing test. Specifically, under the proposal, a residential mortgage loan would not constitute a qualified mortgage (“QM”) if its annual percentage rate (“APR”) exceeds the average prime offer rate (“APOR”) by 200 or more basis points. The CFPB also proposes to eliminate its QM debt-to-income (“DTI”) threshold of 43%, recognizing that the ceiling may…

Retained Interest

Self-Employed Borrower’s Income – Is the Past Necessarily Prologue?

By Laurence E. Platt & Kris D. Kully

June 9, 2020

In a new era of double-digit unemployment resulting from the COVID-19 pandemic, it may be tough for a mortgage lender to predict the amount and stability of someone’s income in order to determine qualification for a home loan. Neither past nor even present levels of income may be reliable indicators of income levels going forward, at least in the short run or until the economic dislocations are substantially behind us. That is why Fannie Mae…

Retained Interest

Mortgage Servicers Are Getting the Short End of the Stick Under the CARES Act

By Laurence E. Platt

June 9, 2020

Many of you have read about the power of the president to invoke the Defense Production Act to acquire products or direct the activities of suppliers based on a finding that it is necessary for the federal government to intrude into the commercial market for national security reasons. When the federal government uses this authority to acquire, or direct the production of, supplies (such as ventilators, N95 masks, and pharmaceuticals in the COVID-19 pandemic context),…

Retained Interest

CFPB Suffers Embarrassing Court Loss

By Ori Lev

June 5, 2020

Posted in Bureau of Consumer Financial Protection (BCFP), Consumer Financial Protection Bureau (CFPB), Enforcement, Student Loans, UDAAP The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) suffered an embarrassing setback in federal district court earlier this week, when a federal district judge denied the Bureau’s motion for entry of a consent judgment on the grounds that the proper party had not consented to entry of the judgment on behalf of the defendants.…

Retained Interest

EBA publishes its report on the creation of an STS framework for synthetic securitisations

By Merryn Craske, Harjeet Lall, Christopher Arnold & Robyn Llewellyn

June 3, 2020

The European Banking Authority (the “EBA”) has recently published its report on the feasibility of a framework for simple, transparent and standardised (“STS”) synthetic securitisations (the “EBA Report”). The EBA Report follows a discussion paper published by the EBA on 24 September 2019 (the “EBA Discussion Paper”). We considered some of the key aspects of the EBA Discussion Paper in a previous legal update. The EBA has reaffirmed its recommendations in the EBA Discussion Paper…

Retained Interest

The OCC Finalizes “Madden Fix” Regulation, Codifying the “Valid-when-Made” Doctrine as Applicable to Loans Made by National Banks and Federal Savings Associations

By Eric T. Mitzenmacher, Steven M. Kaplan, Jeffrey P. Taft & Barbara M. Goodstein

June 1, 2020

On Friday, the United States Office of the Comptroller of the Currency (“OCC”) finalized a regulation regarding the “Permissible Interest on Loans that are Sold, Assigned, or Otherwise Transferred” by national banks and federal savings associations. Initially proposed in November 2019, the regulation provides that interest on a loan that is permissible under provisions of federal banking laws establishing the interest authority of national banks and federal savings associations is not affected by a sale,…

Retained Interest

An Analysis of Structured Finance, Financial Assets and Related Topics

Blog Authors

Ginnie Mae Restricts Long-Time Legitimate Business Activity of Mortgage Servicers

Recommendations for developing the EU securitisation market – Report by the High Level Forum on Capital Markets Union

Volcker Rule Revision Complete: Easing the Compliance Burden for Banks

Federal Housing Agencies and GSEs Announce Updates to COVID-19 Relief Measures for Mortgage Loan Borrowers

CFPB Hatches a QM Proposal for GSE Patch

Self-Employed Borrower’s Income – Is the Past Necessarily Prologue?

Mortgage Servicers Are Getting the Short End of the Stick Under the CARES Act

CFPB Suffers Embarrassing Court Loss

EBA publishes its report on the creation of an STS framework for synthetic securitisations

The OCC Finalizes “Madden Fix” Regulation, Codifying the “Valid-when-Made” Doctrine as Applicable to Loans Made by National Banks and Federal Savings Associations

Stay Connected

Company

Support

New to the Network