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Volume 18 | Issue 150 | Monday, August 05, 2019

The Lede


MBA Advocacy Update

The Senate last week passed a $2.7 billion, two-year budget deal to lift sequester caps and increase the debt ceiling before adjourning for the August work period. Republicans on the Senate Banking Committee urged regulators for additional deregulation. HUD sent Congress a proposed rule to update the Fair Housing Act's disparate impact standard. And the Federal Reserve announced a quarter-point rate decrease and paused quantitative tightening.


Top National News

Lenders Dread Prospect of Fannie, Freddie Losing CFPB Exemption

National Mortgage News, Aug. 2, 2019--Kate Berry (subscription)
Mortgage lenders are fearful that the bottom will fall out of the housing market if the Consumer Financial Protection Bureau's proposal to revise underwriting rules reduces the volume of loans sold to Fannie Mae and Freddie Mac.

As Mortgage-Interest Deduction Vanishes, Housing Market Offers a Shrug

New York Times, Aug. 4, 2019--Jim Tankersley, Ben Casselman
The mortgage-interest deduction, a beloved tax break bound tightly to the American dream of homeownership, once seemed politically invincible. Then it nearly vanished in middle-class neighborhoods across the country, and it appears that hardly anyone noticed.

HUD Loan Sale Program Puts Consumers in Harm's Way: GAO

National Mortgage News, Aug. 2, 2019--Elina Tarkazikis (subscription)
Mortgage loans sold through HUD's Distressed Asset Stabilization Program- mainly to private equity firms -are more likely to result in foreclosure than unsold loans, according to the GAO report.

Nonbank Mortgage Employment Flattens, But More Hiring May Lie Ahead

National Mortgage News, Aug. 2, 2019--Bonnie Sinnock (subscription)
June employment by nondepository mortgage bankers and brokers was little changed from the previous month, but later numbers could prove stronger given some influential lenders' interest in staffing up.

Three Ways Mortgage Lenders Can Be Better Partners To Borrowers

Forbes, Aug. 2, 2019--Joe Tyrrell
The author, COO with Ellie Mae, says mortgage lenders have improved the ability to reach an initial credit decision quickly, but there's still a long way to go before funds can be disbursed after a few taps, clicks or swipes.

Wells Fargo to Tech Vendors: Please Send Us a Check

Wall Street Journal, Aug. 2, 2019--Rachel Louise Ensign (subscription)
Wells Fargo & Co., in cost-cutting mode, recently asked outside technology consultants to refund some of the money the bank has spent with them in the past year, saying the vendors benefited from its regulatory problems.

How the Accused Capital One Hacker Stole Reams of Data From the Cloud

Wall Street Journal, Aug. 4, 2019--Robert McMillan (subscription)
The woman who allegedly pulled off one of the largest-ever bank-data heists appeared to have exploited a vulnerability in the cloud that security experts have warned about for years.

FDIC Chief Warns Banks Could Face Fines for Cyber Breaches

National Mortgage Professional, Aug. 2, 2019--Phil Hall
FDIC Chair Jelena McWilliams stated that cybersecurity was "something we take very seriously." She warned banks that they could face enforcement penalties if they allow cybersecurity breaches to impact their data safety.

Market Shift May Mean Price Cuts

UExpress, Aug. 2, 2019--Lew Sichelman
The housing market is definitely changing. Maybe not everywhere, at least not yet. But in most places, sellers are slowly losing their dominance and buyers are taking control.

Residential Finance News

MBA Chart of the Week: GDP, Inflation and the Fed Funds Rate

This week's chart shows the relative level of the fed funds rate compared to growth and inflation. The chart includes our forecast for a slowdown in economic growth in 2019 and 2020, along with two additional rate cuts.

Employment Report: Steady as She Goes

Total nonfarm payroll employment rose by 164,000 in July, while the unemployment rate held steady at 3.7 percent, the Bureau of Labor Statistics reported Friday.

CFPB Extends Comment Period for Debt Collection Proposal

The Consumer Financial Protection Bureau announced Friday it extended the comment period by 30 days on its Notice of Proposed Rulemaking implementing the Fair Debt Collection Practices Act.

The Week Ahead

Things suddenly got a little quieter in Washington this week. The Senate, having passed a massive fiscal 2020 spending bill last week, adjourned for the August recess. The House and Senate remain in recess until Sept. 9, after Labor Day.

Commercial/Multifamily News

CBRE: Global CRE Investment Slowdown Eases

CBRE, Los Angeles, said global commercial real estate investment reached $231 billion in the second quarter, up 17 percent from the previous quarter but down 7.5 percent from a year ago.

Dealmaker: KeyBank Real Estate Capital Provides $95M for Retail, Multifamily, Hotel Assets

KeyBank Real Estate Capital, Cleveland, provided $95.1 million for retail, multifamily and hotel assets in four states.

MBA News

MBA Risk Management, QA and Fraud Prevention Forum in Chicago Sept. 15-17

The Mortgage Bankers Association's Risk Management, QA and Fraud Prevention Forum takes place Sept. 15-17 at the Sheraton Grand Chicago.

MBA Education Advanced Risk Management Concepts Workshop in Chicago Sept. 15

MBA Education presents a special edition of its Advanced Risk Management Concepts Workshop on Sunday, Sept. 15 in conjunction with the MBA Risk Management, Quality Assurance and Fraud Prevention Forum in Chicago.

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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