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Volume 17 | Issue 191 | Tuesday, October 02, 2018

The Lede


MBA Mobilizes against California Rent Control Proposal

In California, propositions--ballot initiatives that give voters tremendous influence in public policy--are a way of life (think Howard Jarvis and Proposition 13, the landmark 1978 measure that capped state property taxes). But the Mortgage Bankers Association says one such ballot initiative this November could have unintended consequences for affordable housing.


Top National News

Mortgage Industry Calls on CFPB to Rehab LO Comp Rule

National Mortgage News, Oct. 1, 2018--Elina Tarkazikis (subscription)
The Mortgage Bankers Association and nearly a dozen trade groups said that after more than five years under the LO Comp rule, changes to the order should be among the CFPB's top priorities in its review of the mortgage rules, according to a letter sent to acting CFPB Director Mick Mulvaney.

New Bill Clarifies VA Mortgage Eligibility in Ginnie Mae Securities

National Mortgage Professional, Oct. 1, 2018--Phil Hall
H.R. 6737, The Protect Affordable Mortgages for Veterans Act of 2018, would allow recently executed loans refinanced by the Department of Veterans Affairs home loans to maintain their eligibility for pooling in Ginnie Mae securities. Mortgage Bankers Association President and CEO Robert Broeksmit, CMB, says the trade group supports the bill.

CFPB Official Vows to Stay in Job After Reports of Past Racial Remarks

Wall Street Journal, Oct. 1, 2018--Yuka Hayashi (subscription)
Eric Blankenstein, the top enforcement official at the Consumer Financial Protection Bureau on Monday expressed regret for "poor conduct" regarding past racial remarks he made on a blog more than a decade ago, saying he was "absolutely committed to carrying out the bureau's fair lending mandate."

FHA: We Saw Appraisal Issues on 37% of HECM Loans

HousingWire, Oct. 1, 2018--Jessica Guerin
"We were trying to understand why, in a still relatively low interest rate market where house prices have returned in most major markets including in many of these states where reverse mortgages were, why were we still hemorrhaging money," FHA Commissioner Brian Montgomery said. "We thought this was a contributing factor that required further due diligence."

U.S. Housing Market Faces '5-Percent' Test

Reuters, Oct. 1, 2018--Richard Leong
The U.S. housing market, already struggling with tight inventory and rising building costs, faces a fresh headwind as 30-year mortgage rates rise close to the 5 percent threshold for the first time in years.

Beaten-Down Subprime Mortgage Bonds Offered a Decade of Gains

Bloomberg, Oct. 1, 2018--Claire Boston
Fund managers that took a chance on beaten-down mortgage bonds sometime after Lehman Brothers collapsed have seen their money swell as the housing market has recovered. Home loans for even troubled consumers have turned out to be more solid than many investors had feared: borrowers that weathered the downturn are diligently paying their obligations and defaults at this stage are infrequent.

Growth Drives Hirings at Gateway Mortgage Group

Mortgage Daily, Oct. 1, 2018
Continued growth is being cited by Gateway Mortgage Group LLC for a recruiting campaign to add a hundred employees to its network of mortgage locations.

Fannie Leads Agency MBS Issuance Lower

Mortgage Daily, Oct. 1, 2018
After leading agency issuance higher for two consecutive months, Fannie Mae was out front of a decline in securitizations last month. The spread between Freddie Mac's and Ginnie Mae's volume has been slashed from recent highs.

Two-Thirds of U.S. Business Economists See Recession by End-2020

Bloomberg, Oct. 1, 2018--Jeff Kearns
About 10 percent see the next contraction starting in 2019, 56 percent say 2020 and 33 percent said 2021 or later, according to the Aug. 28-Sept. 17 poll of 51 forecasters issued by the National Association for Business Economics on Monday.

Residential Finance News

Studies Examine 'Delicate Balance' Between Customer Experience, Fraud Prevention

Striking the "delicate balance" between customer experience and fraud prevention is not an easy feat, a series of studies by Forrester Consulting and TransUnion reported.

Housing Demand Unchanged for 4th Consecutive Month

Redfin, Seattle, said its Housing Demand Index has remained roughly unchanged for the past four months, inching up by just 0.3 percent from July to 125.2 in August.

Commercial/Multifamily News

MBANow CREF Corner Office Conversation with Walker & Dunlop's Willy Walker

The Mortgage Bankers Association released a new interview with Walker & Dunlop Chairman and CEO Willy Walker, who discusses multifamily, Walker & Dunlop's business strategy and GSE reform. Walker serves on MBA's board of directors.

Commercial Real Estate's Relative Value Slips

Commercial real estate's relative value compared to price slipped in the second quarter, reported Situs RERC, Houston.

Dealmaker: 303 East Wacker Changes Hands For $182M

Franklin Street Properties, Wakefield, Mass., sold Chicago office tower 303 East Wacker to Beacon Partners, Boston, for $182 million.

MBA News

MBA Accounting & Financial Management Conference in Orlando Nov. 12-14

The Mortgage Bankers Association's MBA Accounting & Financial Management Conference takes place in Orlando Nov. 12-14.

Make Your Voice Heard through MBA Mortgage Action Alliance

The Mortgage Action Alliance is a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association.

MBA Compliance Essentials UDAAP & FTC MAP Rule Resource Guide Available

The MBA Compliance Essentials program offers a new Resource Guide: Unfair, Deceptive, or Abusive Acts and Practices (UDAAP) & FTC Mortgage Acts and Practices Advertising (MAP) Rule.

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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