Seeking Alpha

New rules to take toll on mortgage market

New mortgage rules from the CFPB are making a bad situation worse, with DBRS predicting historically low volumes in H1 and just slight improvement in the year's 2nd half.

"Not all industry participants are confident that they have appropriately adopted the changes into their operations or fully understand how to quantify the liability for noncompliance," says DBRS's Kathleen Tillwitz, noting how complicated the rules are and the high level of technological capabilities to ensure compliance.

Things don't look any better for servicers who will spend the year attempting to "perfect the art" of following along with the new rules. "2014 will be a year of fines and lawsuits."


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Comments (5)
  • june1234
    , contributor
    Comments (3525) | Send Message
    not like mtg credit was flowing before that. apps for new home purchases down bout 16% yr over yr in this housing recovery, refi apps collapsed over same time period.
    21 Jan 2014, 09:24 AM Reply Like
  • daro
    , contributor
    Comments (1693) | Send Message
    maybe investor activity is lowering mortgage activity (in addition to higher rates and higher credit standards)?
    21 Jan 2014, 10:10 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12409) | Send Message
    Oh but the mortgage realtors said this market is so hot you got to buy now now now before we run out of land. Please, between them and the banks that want you to buy so they can dump the potential default loan the Fannie Mae and Freddie Mac for the taxpayer to pick up for a instant riskless profit it is no wonder they target the poorest dumbest people to buy a house these days. When they start banging their drums saying a strong recovery is happening and you must buy before interest rates rise further run to the hills because they are about ready to destroy our economy with CMBS and other mortgage derivative crap milled by suckering people into losing it all.
    21 Jan 2014, 12:29 PM Reply Like
  • convoluted
    , contributor
    Comments (2321) | Send Message
    There's definitely a sucker born every minute, but how many in this category go on to be mindless bureaucrats?
    Or even politicians?
    The more informed perspective on real estate is that unprecedented buying of foreclosures/short sales/distressed property has been done with very deep pockets. The deep pockets' intent is to rent the properties out to people that can't afford to buy a home. And, they can't afford to buy a home because (a) their wages have stagnated and/or (b)the deep pockets have bought the supply. More 'rules' will increase the mindless bureaucracy, making a complex task more complex-which will require more mindless bureaucrats.
    21 Jan 2014, 01:17 PM Reply Like
  • 481086
    , contributor
    Comments (3440) | Send Message
    "this sucker's going down..."
    21 Jan 2014, 07:40 PM Reply Like
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