It appears that a final bill to extend and enhance the Fair Credit Reporting Act will expand the use of adverse-action notices, if this section of the bill can be improved to provide more certainty for lenders.House and Senate conferees are trying to reach an agreement on a final FCRA bill as Congress prepares to adjourn for the year by Thanksgiving. One of the outstanding issues involves a Senate-passed provision that requires adverse-action notices in cases where borrowers are not offered the lender's usual interest rate or terms because of their credit score. The Mortgage Bankers Association of America and other lender groups are concerned that the legislative language is too vague on what circumstances would trigger the notices and leaves too much discretion to the regulators in interpreting the new adverse-action requirement. "We are looking for more certainty in the triggers and more certainty in the class of individuals that would qualify for these disclosures," said MBA lobbyist Erick Gustafson.
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Rejections for mortgage credit outpaced almost every other borrowing category, according to the Federal Reserve Bank of New York.
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Consumer Financial Protection Bureau Director Rohit Chopra said the FICO credit-scoring model has drawbacks in price, predictiveness and market competition, and stakeholders should develop a more open-sourced model that uses artificial intelligence.
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Smaller players face challenges when it comes to mortgage servicing rights, and larger ones have varying motivations, experts at an industry meeting say.
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The 30-year fixed rate mortgage average resumed its climb that started in September, as the benchmark 10-year Treasury price still reflects views on inflation.
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Fannie Mae's latest economic forecast no longer expects mortgage rates to go below 6% next year, and that is affecting its views on loan origination volume.
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Amid steady customer growth, USAA's banking arm failed to make the investments necessary to satisfy either its regulators or some decades-long customers. Changes in the executive suite haven't fixed the problems.
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