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Volume 18 | Issue 36 | Tuesday, July 16, 2019

The Lede


MBA Offers Recommendations to CFPB on Regulatory Flexibility Act

The Mortgage Bankers Association, in a July 15 letter to the Consumer Financial Protection Bureau, offered several recommendations on the Bureau's review of its rules under the Regulatory Flexibility Act.


Top National News

SEC Calls for Orderly Transition Away From LIBOR

National Mortgage Professional, July 15, 2019--Phil Hall
The Securities and Exchange Commission called on market participants to "proactively manage their transition" away from the London Interbank Offered Rate, which is set to expire in 2021. In June, the Mortgage Bankers Association's LIBOR Outreach Committee found 92 percent of the commercial and multifamily mortgage lenders it polled have already begun planning for the transition away from LIBOR, with 77 percent already including adjusted LIBOR fallback language in all new loan documents.

Trade Groups Cast Doubt over FHA's Attempt to Remove Lending Roadblocks

HousingWire, July 15, 2019--Jessica Guerin
In two letters sent recently to HUD, four trade groups--the Housing Policy Council, the Mortgage Bankers Association, the American Bankers Association and the Bank Policy Institute--cast doubt on the proposed revisions to the FHA's lender guidelines.

Wave of Hispanic Buyers Boosts U.S. Housing Market

Wall Street Journal, July 15, 2019--Laura Kusisto, Ben Eisen (subscription)
Hispanics are experiencing the largest homeownership gains of any ethnic group in the U.S., a turnaround for the population hardest hit by the housing bust that could help buoy the market for years.

Citigroup Reports Profit, Revenue Boost

Wall Street Journal, July 15, 2019--Telis Demos (subscription)
Strong U.S. consumer banking gave Citigroup Inc. a boost in the second quarter, helping it overcome slow trading and corporate activity.

Life Insurers Upped Mortgage Investments Risky in Case of Downturn

National Mortgage News, July 15, 2019--Brad Finkelstein (subscription)
Life insurance companies increased their mortgage investments to levels higher than historical norms, creating more potential danger for their portfolios in the event of a real estate downturn, a Fitch Ratings report said.

Realogy Slapped with Class Action Suit for Securities Fraud

HousingWire, July 15, 2019--Jessica Guerin
According to the suit filed Thursday by The Rosen Law Firm in the U.S. District Court of New Jersey, Realogy filed false and misleading statements with the Securities and Exchange Commission by not disclosing that it was engaging in "anticompetitive behavior by requiring property sellers to pay a buyer's broker an inflated fee."

Nomura to Pay $25 Million Over Mortgage Bond Traders' Lies

Bloomberg, July 15, 2019--Matt Robinson
A Nomura Holdings Inc. unit will repay customers about $25 million to settle U.S. regulators' allegations that it failed to supervise traders who made false statements in negotiating sales of mortgage securities.

Residential Finance News

CoreLogic: Single-Family Rent Growth Remains Stable as Employment Growth Strengthens

CoreLogic, Irvine, Calif., reported U.S. single-family rent prices increased 3% year over year in May, with low-end rent prices up 3.5%, compared to high-end price gains of 2.5%.

BAI: 'Significant Disconnect' Between Leadership, General Staff on Ethics, Culture, Conduct Risk

BAI, Chicago, said its survey of more than 450 human resources risk and compliance leaders and general employees at financial services organizations found a strong disparity in cultural ethics.

Commercial/Multifamily News

Apartments See Strong First-Half Finish

The first half of 2019 ended "with a flourish" for multifamily real estate, said Yardi Matrix, Santa Barbara, Calif.

Dealmaker: George Smith Partners Places $460M Construction Loan

George Smith Partners, Los Angeles, placed $460 million in senior construction financing for a one-million-square-foot Portland, Ore. mixed-use development.

MBA News

Terry McAuliffe, Chris Christie, Margaret Brennan Keynote MBA Annual19 General Session

It's only summer, but the Mortgage Bankers Association's Annual Convention (Oct. 27-30 in Austin, Texas) is already heating up, with former Virginia Gov. Terry McAuliffe, former New Jersey Gov. Chris Christie and CBS News' Fact the Nation host Margaret Brennan keynoting the Politics Today General Session on Tuesday, Oct. 29.

Upcoming MBA Education School of Mortgage Banking I Courses

MBA Education presents its popular School of Mortgage Banking Course I this summer and fall.

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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