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Volume 18 | Issue 72 | Monday, April 15, 2019

The Lede


MBA Advocacy Update

This past week, Treasury Secretary Steven Mnuchin testified before both the House Financial Services Committee and the House Appropriations Subcommittee on Financial Services and General Government regarding a broad slate of economic items and the Treasury Department's FY 2020 budget request, respectively.


Top National News

Mortgage Demand is Up a Bit: Quicken Loans Founder

CNBC Squawk Box, Apr. 12, 2019
Dan Gilbert, founder and chairman of Quicken Loans, and Jay Farner, CEO of Quicken Loans, discuss the state of the mortgage sector as home buyers prepare for spring.

GE to Pay $1.5 Billion Fine over Subprime Mortgage Misdeeds

MarketWatch, Apr. 12, 2019--Andrea Riquier
General Electric will pay a civil penalty of $1.5 billion over subprime mortgage loans, the Department of Justice said Friday. WMC Mortgage, a GE subsidiary, and GE itself "misrepresented the quality" of the loans made by WMC, as well as the quality controls of GE's mortgage bonds, the DOJ said in a filing.

Mortgage Results Improve at Wells Fargo, JPMorgan Chase

National Mortgage News, Apr. 12, 2019--Bonnie Sinnock (subscription)
The home-loan origination total was $33 billion at Wells and $15 billion at JPMorgan Chase. While this marked a 13% consecutive-quarter drop for both companies, it compares favorably to consecutive-quarter declines of almost 19% at Wells and more than 25% at JPMorgan Chase a year ago.

Warren, Tillis Looking to Enforce GSE Salary Caps

American Banker, Apr. 12, 2019--Neil Haggerty (subscription)
Sens. Elizabeth Warren, D-Mass., and Thom Tillis, R-N.C., have introduced the Respect the Caps Act, which would explicitly bar Fannie and Freddie from transferring or delegating any duty or responsibility to the chief executive officer to any other position. It would also allow for the Federal Housing Finance Agency director's removal if it approves compensation greater than the cap of $600,000 a year, which was signed into law in 2015.

Why Donald Trump's Fed Picks Stephen Moore and Herman Cain Have Caused Such a Ruckus

USA Today, Apr. 14, 2019--Paul Davidson, Michael Collins
President Donald Trump's selections for the Federal Reserve board, conservative pundit Stephen Moore and former pizza chain executive Herman Cain, have created a media firestorm. Cain, a Republican who ran for president in 2012, may be set to withdraw from consideration in the face of opposition from Senate Republicans, according to an ABC News report Friday, though Moore was still in the running.

Former House Financial Services Committee Chairman Jeb Hensarling Lands at UBS

HousingWire, Apr. 12, 2019--Ben Lane
Hensarling, a Republican from Texas, began serving in Congress in 2003, and assumed the influential role of chairman of the House Financial Services Committee in 2013. Hensarling retired from Congress earlier this year after announcing in 2017 that he would not seek re-election in 2018. Now, after spending years pushing for reduced regulation over financial services providers, Hensarling is joining UBS, one of those companies.

How Far Will the CFPB Go to Modernize Debt Collection Rules?

American Banker, Apr. 14, 2019--Kate Berry (subscription)
Debt collectors and trade groups that have met with CFPB Director Kathy Kraninger said the bureau will look at developing regulatory policy for modern communication practices including text messaging and emails that were not invented when the Federal Debt Collection Practices Act went into effect.

The Forgotten Costs of Remodeling

UExpress, Apr. 12, 2019--Lew Sichelman
It's not that remodelers are dishonest, although some certainly are. But they often leave out key costs -- sometimes to lowball their estimates so they can win the job, sometimes because they simply forget. Either way, it will end up costing you more.

Residential Finance News

Veros: Continued Slowing in Top 100 Housing Markets

Veros Real Estate Solutions, Santa Ana, Calif., said annual home price appreciation in the top 100 U.S. housing markets will continue to slow over the year.

The Week Ahead

Congress is in recess for the next two weeks (officially, "District Work Sessions"). The House and Senate return on Apr. 29.

Commercial/Multifamily News

MBA Chart of the Week: Top Investor-Driven Lenders, 2018

Mortgage real estate investment trusts, debt funds and other "investor-driven lenders" are one of the hottest capital sources in today's commercial real estate finance markets.

Grocery Stores Defy Retail Sector Slump

New grocery store openings increased 30 percent in 2018 compared to 2017 as grocers added more than 17 million square feet of space in the U.S., reported JLL, Chicago.

Dealmaker: Quantum Capital Partners Secures $54M

Quantum Capital Partners, Beverly Hills, Calif., arranged $54 million to refinance four Los Angeles properties.

MBA News

MBA Commercial/Multifamily Servicing & Technology Conference in L.A. May 14-17

The Mortgage Bankers Association's annual Commercial/Multifamily Servicing & Technology Conference takes place May 14-17 at the J.W. Marriott L.A. Live in Los Angeles.

MBA Education Advanced Risk Management for Pros June 3-5 in D.C.

MBA Education presents its popular Advanced Risk Management for Mortgage Pros Workshop, in conjunction with the Robert H. Smith School of Business at the University of Maryland, in Washington, D.C. June 3-5.

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.

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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