New rules to take toll on mortgage market

|By:, SA News Editor

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."

Servicers: OCN, NSM, WAC, HLSS, PMT, NRZ, ASPS.