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Volume 16 | Issue 193 | Friday, October 06, 2017

The Lede


Law Enforcement Officials See Increased Sophistication in Mortgage Fraud

MIAMI--Mortgage fraud cases have been a downward trend for more than a decade--all the more reason, said law enforcement officials here at the Mortgage Bankers Association's Risk Management, QA and Fraud Prevention Forum, to be even more vigilant.


Residential Finance News

Baby Boomers Accelerate into Free-and-Clear Homeownership

Fannie Mae, Washington, D.C., reported an increasing number of Baby Boomers paying off their mortgages, although as a cohort they remain behind previous generations.

Higher Rates Not Deterring Millennials

The news about Millennials and homeownership is not all dreary. Ellie Mae, Pleasanton, Calif., said summer temperatures and higher rates appeared to have little effect on the Millennial home buying market.

Residential Briefs

Quandis Inc., Rancho Santa Margarita, Calif., added new functionality that allows servicers and default attorneys to more easily manage images of official certificates from the Department of Defense to demonstrate proof of compliance for adherence to the Servicemembers Civil Relief Act.

Commercial/Multifamily News

Apartment Rent Growth Stable; Occupancy Remains Tight

U.S. apartment rents saw flat rent growth in September but moderate third-quarter growth, said RealPage, Richardson, Texas, and Yardi Matrix, Santa Barbara, Calif.

Dealmaker: Wells Fargo Provides $101M for Miami Multifamily Construction

Wells Fargo & Co. made a $101 million HUD-insured loan to SM Multifamily LLC, Aventura, Fla.,  to develop two Florida multifamily towers.

MBA News

HUD Secretary Carson to Keynote MBA Annual Convention & Expo

HUD Secretary Ben Carson will address the Opening General Session at the Mortgage Bankers Association's Annual Convention & Expo in Denver this October.

MBA Education Fundamentals and Best Practices in Mortgage Accounting Workshop Nov. 13

MBA Education presents Fundamentals and Best Practices in Mortgage Accounting, a one-day workshop taking place Monday, Nov. 13 in San Antonio, Texas, ahead of the MBA Accounting and Financial Management Conference.

NMLS Launches 2018 Licensing Renewal Effort; Deadline Dec. 31

The Nationwide Mortgage Licensing System's 2018 Streamlined Renewal Process begins November 1 and ends December 31. MBA encourages Mortgage Loan Originators to renew their licenses as soon as possible.

MBA Education Advanced Risk Management for Mortgage Pros Oct. 18-20

MBA Education presents Advanced Risk Management for Mortgage Pros in at the Ronald Reagan Building and International Trade Center in Washington, D.C. Oct. 18-20.

Top National News

Mortgage Rates Hold Steady But Are Trending Higher

Washington Post, Oct. 5--Kathy Orton
Mortgage rates barely budged this week as the impact of the recent hurricanes began weighing on the economy. "As purchase applications picked up, we saw the ARM share increase to its highest level since January of this year," said Mortgage Bankers Association economist Joel Kan.

Wells Fargo Executives, Board Must Facee Lawsuit over Fake Accounts, Judge Says

Reuters, Oct. 5, 2017--Jonathan Stempel
U.S. District Judge Jon Tigar in San Francisco said shareholders may pursue claims that Wells Fargo officials looked the other way as employees facing "unrelenting" pressure to meet sales quotas unlawfully opened accounts and misled the public about fraudulent practices at the nation's third-largest bank.

CFPB OIG Outlines Areas of Improvement for the Regulator

HousingWire, Oct. 5, 2017--Brena Swanson
As the Consumer Financial Protection Bureau continues to develop, a report from the Office of Inspector General for the Consumer Financial Protection Bureau found some areas the bureau could work on.

Senate GOP Hits Resistance on Estate-Tax Repeal--From Republicans

Wall Street Journal, Oct. 5, 2017--Richard Rubin (subscription)
Senate Republicans are running into internal resistance to their proposed repeal of the estate tax, making it a potential casualty of the trade-offs the GOP faces in its effort to overhaul the tax code.

In Defense of Adjustable-Rate Mortgages

Bloomberg, Oct. 5, 2017--Megan McArdle
There's nothing wrong with adjustable-rate mortgages. There, I said it. They're a perfectly fine financial product. In fact, they're probably not much better or worse than a fixed-rate loan.

Home Affordability Remains a Serious Challenge

National Mortgage Professional, Oct. 5, 2017--Phil Hall
There is good news and bad news on the home affordability, according to new research from ATTOM Data Solutions. The good news is that home affordability in the third quarter improved compared to the previous quarter in 60 percent of 406 counties analyzed by the company. The bad news, unfortunately, is that affordability was worse off than a year ago in 79 percent of those counties.

Why Commercial Real Estate Lending by Big Apple's Home-Grown Banks Is Down

National Real Estate Investor, Oct. 5, 2017--Ely Razin
Why are these Big Apple lenders cutting back on their commercial real estate financing activity?

Judge Orders Bank of America to Redo Settlement in Mortgage Dispute

Wall Street Journal, Oct. 5, 2017--Katy Stech Ferek (subscription)
The bankruptcy judge handling a dispute between Bank of America Corp. and a California couple who were mistakenly foreclosed on refused to approve a settlement that would end their lawsuit on Wednesday.

Mortgage Industry Loses 2 in Las Vegas Shooting

Orange County Register (Calif.), Oct. 5, 2017--Jordan Graham
Brian Fraser, 39, of La Palma, California, was surrounded by family and friends, having the time of his life, and walking toward the stage to hear his favorite Jason Aldean song, Dirt Road Anthem, when he was shot and killed at a Las Vegas country music festival Sunday.

SPS Grew its Servicing Rights 14% by Targeting Nonagency Market

National Mortgage News, Oct, 5 2017--Brad Finkelstein (subscription)
Select Portfolio Servicing grew its mortgage servicing rights portfolio by over 14% in the second quarter by targeting opportunities in the nonagency loan market.

Randal Quarles, Trump's First Fed Nominee, Wins Senate Approval

Wall Street Journal, Oct. 5, 2017--Ryan Tracy (subscription)
The Senate on Thursday approved Randal Quarles for a key banking oversight post on the Federal Reserve Board, marking President Donald Trump's first imprint on the central bank and his first full-time appointment of a banking regulator.

Mortgage Company President Pleads Guilty to $2.5M Fraud

Associated Press, Oct. 5, 2017
The U.S. attorney's office says 68-year-old Robert Pena, of Falmouth, pleaded guilty to one count of conspiracy and six counts of wire fraud on Wednesday. He is scheduled to be sentenced on Jan. 5.

$50 Million in Mortgages Sold

Mortgage Daily, Oct. 5, 2017
The deal was announced Thursday by Mortgage Industry Advisory Corp. New York-based MIAC noted that its whole-loan desk placed the $50 million pool of mortgages.

The Rich Are Driving Up the Rent

Bloomberg, Oct. 5, 2017--Patrick Clark
Following the Great Recession, the cost of rental housing took a growing bite out of U.S. household budgets, as increasing demand for rental units pushed up prices. Now the share of households considered burdened by high rents is falling, according to a report from New York University's Furman Center for Real Estate & Urban Policy.

Bankrupt U.S. Retailers Begin to Catch a Break

Reuters, Oct. 6, 2017--Jessica DiNapoli, Tracy Rucinski
An unexpected helping hand from creditors, landlords and vendors is allowing more U.S. retailers to stay in business following bankruptcy with most of their stores and employees in the fold.

About MBA Newslink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem

Editor: Mike Sorohan 202/557-2855 

Editorial Director: Michael Tucker 202/557-2851 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856

Advertising Opportunities: Bill Farmakis 203/834-8832

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