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Volume 17 | Issue 175 | Monday, September 10, 2018

The Lede


MBA Advocacy Update

MBA last week led a broad coalition of 29 groups in a letter calling on the Trump administration and Congress to complete the job of reforming the GSEs. The letter coincided with the 10-year anniversary of the GSEs being placed into conservatorship.


Top National News

A Legacy of the Financial Crisis? The Makings of the Next One

Washington Post, Sept. 7, 2018--Roger Lowenstein
In a happier world, we would be celebrating the bank bailouts of 10 years ago. They stopped a scary downward spiral, averted a longer-lasting depression and quickly led to a recovery that endures today. Instead, the bailouts poisoned American politics, specifically by destroying the then-moderate center of the Democratic Party and shifting the base of the Republican Party into the netherworld of conspiracist paranoia.

A Decade After the Financial Crisis, Many Americans are Still Struggling to Recover

Los Angeles Times, Sept. 9, 2018--Jim Puzzanghera
Amid the chaos caused by Lehman's collapse, the big banks got hundreds of billions of dollars in bailouts. Aggressive stimulus efforts by Washington officials injected trillions of dollars more into the financial markets and the economy, helping to end the recession, trigger record bank profits and fuel a historic stock market boom. But there were no big bailouts for lower- or middle-income Americans.

The Financial Crisis Made Us Afraid of Risk-For a While

Wall Street Journal, Sept. 8, 2018--Greg Ip (subscription)
Ten years ago this month, the failure of Lehman Brothers exposed how cavalier the world had been towards risk. Households had bought homes they thought could never go down in price, banks had made loans they thought would never default and repackaged them into securities to make them seem riskless and governments, convinced depressions were a thing of the past, had stood by.

Advisory Boards are Back at CFPB, But with Fewer Members

American Banker, Sept. 7, 2018--Kevin Wack (subscription)
After firing the members of a consumer advisory panel earlier this year, the Consumer Financial Protection Bureau has reconstituted the panel in a way that excludes national advocacy organizations.

Google Searches for 'Mortgage Rates'--a Tour through Financial Market History

MarketWatch, Sept. 7, 2018--Andrea Riquier
Google searches are often a bit more benign--but still reveal a lot. MarketWatch took a look at the history of Americans' searches for the term "mortgage rates" over the past 14 years, which was the longest back in time we could take that search. The pattern that emerges reads like a consumer history of the American economy and financial markets in a particularly edgy moment in time.

Nonbank Mortgage Employment Inches Down as Housing Market Loses Steam

National Mortgage News, Sept. 7, 2018--Bonnie Sinnock (subscription)
The number of workers employed by nonbank mortgage lenders and brokers reversed course and inched lower in July, as affordability constraints and limited income gains reduced demand.

Highland Capital Is Close to $300 Million Rental-Home Deal

Bloomberg, Sept. 7, 2018--Patrick Clark, Gillian Tan
Highland Capital Management LP, the asset manager founded by Jim Dondero and Mark Okada, is under contract to buy a portfolio of single-family rental homes managed by VineBrook Partners LLC for more than $300 million, according to people with knowledge of the deal.

Loan Innovations Keep Coming

UExpress, Sept. 7, 2018--Lew Sichelman
Most recently, at least four companies--Finance of America, Longbridge Financial, One Reverse Mortgage and Reverse Mortgage Funding--have rolled out proprietary home equity conversion mortgages to compete directly with reverse loans insured by the Federal Housing Administration.

Mortgage Biz Off 4 Wks in Row Despite Purchase Bump

Mortgage Daily, Sept. 7, 2018
New mortgage business retreated for the fourth consecutive week, with the holiday dragging down the latest seven-day period. according to the Mortgage Daily U.S. Mortgage Market Index.

MSRs on Nearly $2 Bil in Ginnie Mae Loans for Sale

Mortgage Daily, Sept. 7, 2018
Servicing rights are being marketed on a nearly $2 billion Ginnie Mae portfolio with an elevated delinquency rate and a moderate coastal concentration.

Rental Glut Sends Chill Through the Hottest U.S. Housing Markets

Bloomberg, Sept. 7, 2018--Prashant Gopal
Renters are gaining the upper hand in urban centers across the U.S. as new amenity-rich apartment buildings constructed in response to big rent gains in previous years are forced to fight for customers.

Residential Finance News

44 Million Americans Have Tappable Equity

Black Knight, Jacksonville, Fla., said despite slower home price growth, U.S. tappable equity surpassed $6 trillion for the first time, impacting 44 million homeowners with mortgages.

Report Cites Broad Home-Equity Gains Across Minority, White Neighborhoods

Homeowners in white, minority and mixed-race neighborhoods posted substantial gains in home equity between 2012 to 2018, said Redfin, Seattle.

The Week Ahead

The Mortgage Bankers Association releases its monthly Mortgage Credit Availability Index this Tuesday, Sept. 11; its Weekly Applications Survey this Wednesday, Sept. 12; and its monthly Builder Applications Survey this Thursday, Sept. 13, The Federal Reserve releases its Beige Book this Wednesday, Sept. 12.

Commercial/Multifamily News

MBA Chart of the Week: Commercial/Multifamily Delinquency Rates Since 1996

It is hard to overstate how low commercial and multifamily mortgage delinquency rates are today.

Small-Balance Market Shows Resilience

Despite pressure from rising interest rates, valuations on properties securing small-balance multifamily loans have shown clear resilience, said Arbor and Chandan Economics.

Dealmaker: HFF Closes $161M in Retail, Industrial Refinancings

Holliday Fenoglio Fowler, Houston, secured $161.3 million to refinance retail and industrial assets in Texas and Maryland.

MBA News

MBA Risk Management/QA/Fraud Prevention Forum Sept. 23-25

The Mortgage Bankers Association's annual Risk Management, QA and Fraud Prevention Forum takes place Sept. 23-25 in Los Angeles.

MBA Education Fundamentals and Best Practices in Mortgage Accounting Workshop Nov. 12

MBA Education presents a workshop, Fundamentals and Best Practices in Mortgage Accounting Workshop, on Monday, Nov. 12 at the Hyatt Regency Orlando.

MBA Education Successful Practices in Third-Party Risk Management at MISMO Summit Sept. 28

MBA Education offers a workshop, Third-Party Risk Management, on Friday, Sept. 28 during the MISMO Fall Summit at the Ritz-Carlton in McLean, Va.

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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