Ginnie Mae to allow pooled eNote, paper securitizations

The U.S Department of Housing and Urban Development will begin allowing eNotes and traditional paper notes to be securitized in the same Ginnie Mae pools beginning in June. HUD Acting Secretary Adrianne Todman delivered the news at the Mortgage Bankers Association's Secondary Markets Conference in New York on Monday. The decision was the result of stakeholder feedback as well as Ginnie Mae's proven success with past efforts with eNotes, she said. Noting the "phenomenal wave of growth," Todman said Ginnie Mae has issued over $38 billion in eNotes since 2021 through its digital collateral program.

READ MORE: Ginnie Mae to allow pooled eNote, paper securitizations

Calls for Ginnie Mae modernization mount after FSOC report

One key question emerging following a recent Financial Stability Oversight Council report on nonbank mortgage risks is whether it will lead to the new authorities for Ginnie Mae in line with its recommendations. A growing number of reactions to the report, which also advocates for other measures like expanded powers for the entity that regulates government-sponsored enterprises Fannie Mae and Freddie Mac, are centering on Ginnie's role in the market? "The most significant advance responsibilities that servicers have are in the Ginnie Mae program. They're much higher than Fannie and Freddie's," said Scott Olson, executive director the Community Home Lenders of America.?

OneTrust says Newrez's suit muddied its reputation, recruiting power

OneTrust Home Loans, a d.b.a. of CalCon Mutual Mortgage LLC, is fighting back against Newrez's claims that its CEO was the mastermind behind an elaborate ruse to raid employees from the Pennsylvania-based company and steal trade secrets. In a 36-page counter complaint, OneTrust unties allegations pegged against it and executive James Hecht, including a refutation that its CEO planned the firing and later rehiring of senior Newrez executives, and a denial that he had any deep insights into pipeline information of employees at his prior place of work. Instead, OneTrust's complaint points the finger at Newrez's President Baron Silverstein for "making the decisions to terminate the employment of retail lending senior leadership members."

RESPA, HMDA violation fines hit Arkansas' Bank of England

Bank of England in Arkansas and nine former employees have settled with a regulator over their violations of numerous real estate laws impacting over 900 consumers. The Federal Deposit Insurance Corp. ordered the bank to pay a $1.5 million civil money penalty, and its ex-workers to pay a combined $263,500, it announced Friday. Among numerous infractions, originators in one office misled Department of Veterans Affairs refinance loan applicants to believe they could skip two months of mortgage payments. The lender also lured borrowers with low loan prices that were raised prior to closing. The bank has made $1.9 million in remediation payments to over 900 consumers.?

Sign up here to receive the National Mortgage News complete newsletter — delivered to your inbox daily.