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Volume 8 | Issue 32 | Tuesday, August 07, 2018

The Lede


MBA Offers Recommendations to Improve Veterans' Loan Programs

The Mortgage Bankers Association, in testimony submitted to the Senate Veterans Affairs Committee, offered recommendations to improve veterans' ability to obtain loans under the VA Home Loans program, as well as improving the market for VA-guaranteed refinancings in Ginnie Mae mortgage-backed securities pools.


News & Trends

FHFA Extends Public Comment Period for Proposed Rule on GSE Capital Requirements

The Federal Housing Finance Agency extended the public comment period for the Agency's proposed rule on Enterprise Capital Requirements by an additional 60 days, citing "high level of interest in the proposed rule and requests from multiple stakeholders for more time to evaluate it."

CMBS Delinquencies Could Decline Further

The commercial mortgage-backed securities delinquency rate is likely to fall further to finish 2018 between 2.25 percent and 2.75 percent, said Fitch Ratings, New York.

CMBS Supply-Demand Fundamentals Remain Stable

Commercial property market supply and demand fundamentals remained relatively stable in the first quarter, said Moody's Investors Service, New York.

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 Compliance Essentials Offers Certified Mortgage Compliance Professional Designation Level 1

Earn recognition for your mortgage compliance expertise: MBA Education and the MBA Compliance Essentials program offer the only certification and designation program geared exclusively towards compliance professionals in the mortgage finance industry, the Certified Mortgage Compliance Professional (CMCP).

MBA Disaster Recovery Guide Now Available in Spanish

The Mortgage Bankers Association and the National Association of Hispanic Real Estate Professionals have developed a Spanish-language version of Disaster Recovery: A Resource for Homeowners, a consumer-facing informational guide.

MBA Education Advanced Risk Management Concepts Workshop Sept. 23

MBA Education presents a special Advanced Risk Management Concepts Workshop on Sept. 23 at the JW Marriott L.A. Live in Los Angeles in conjunction with the MBA Risk Management & Quality Assurance Forum.

Top National News

Flood Insurance Extension Approved

Mortgage Daily, July 31, 2018
"This will protect residential and commercial real estate markets from potential harm, and provide stability for those that sell and administer the policies to millions of Americans," said Mortgage Bankers Association President and CEO David Stevens.

Veteran Against Veteran: A New Battle on Capitol Hill Pits Agent Orange Funding Against Low-Cost Mortgages

MarketWatch, Aug. 2, 2018--Andrea Riquier
The Mortgage Bankers Association put it this way in their own letter: "we firmly believe that mortgage borrowing costs should not be increased to pay for non-housing-related expenditures. The loan fees charged to veterans should reflect the credit risk associated with the VA guaranty, and any fee increases that are unrelated to this risk unnecessarily raise the cost of mortgage credit for veterans."

Panel Vote on CFPB Nominee Delayed as Senate Plans Recess

American Banker, Aug. 1, 2018--Neil Haggerty (subscription)
The Senate Banking Committee is postponing its vote on Kathy Kraninger's nomination to be the director of the Consumer Financial Protection Bureau as the Senate moved to adjourn for a short recess on Wednesday.

Wells Fargo Reaches $2 Bil Subprime RMBS Settlement

Mortgage Daily, Aug. 1, 2018
More than two years after revealing a government investigation into how it handled sales of subprime residential mortgage-backed securities, Wells Fargo & Co. has agreed to a more than $2 billion settlement.

Wells Fargo's $2B Settlement May Mark End of Crisis-Era RMBS Woes

National Mortgage News, Aug. 1, 2018--Kristin Broughton (subscription)
The beleaguered bank's $2.09 billion settlement stemmed from crisis-era mortgage problems, rather than revelations of new issues at Wells that could have sparked a regulatory backlash or probe that might cause headaches for other banks.

Wells Fargo Faces Tax Credit Probes, New Problems with Mortgage Borrowers

Reuters, Aug. 3, 2018--Lauren Tara LaCapra, Pete Schroeder
The $8 million accrual is intended for roughly 625 borrowers who should have qualified for a loan modification under a program the Treasury Department set up in 2009 to help Americans who were struggling to make mortgage payments. An error in Wells Fargo's underwriting tool improperly excluded those borrowers, 400 of whom eventually had their homes foreclosed upon, the bank said.

HSBC to Pay $765M to Settle U.S. Toxic Mortgage Probe

Sky News, Aug. 6, 2018--Abid Ali
HSBC has agreed to pay $765 mmillion to the U.S. Department of Justice to settle a probe into the sale of mortgage-backed securities in the run-up to the financial crisis.

Former Lehman Unit Fined for Fraud

Denver Post, Aug. 3, 2018--Donovan Henderson
Aurora Loan Services LLC will pay a $41 million fine for what the U.S. Attorney says were fraudulent loans from 2004 to 2008 under an agreement with the government announced Thursday.

Investigating the Investigator: Fannie-Freddie Watchdog Under Scrutiny

Politico, Aug. 2, 2018--Lorraine Woellert, Katy O'Donnell
Laura Wertheimer, inspector general for the Federal Housing Finance Agency, is under investigation for misconduct after complaints that she bowed to pressure from the agency's director, Mel Watt, to weaken her office's oversight.

Freddie Mac Reports Income of $2.4 Billion in Q2

HousingWire, July 31, 2018--Kelsey Rammirez
This income is up slightly from the first quarter this year, when the company reported comprehensive income of $2.2 billion, and up even more from the second quarter of 2017, when it saw a comprehensive income of $2 billion.

Fannie Mae Reports Income of $4.5 Billion in Q2

HousingWire, Aug. 2, 2018--Alcynna Lloyd
Fannie Mae reported income of $4.5 billion in the second quarter, primarily driven by an increase in credit-related income due to the redesignation of loans from held-for-investment to held-for-sale.

Genworth M.I. Business, Earnings Jump

Mortgage Daily, Aug. 1, 2018
Quarterly business increased at Genworth Mortgage Insurance Corp., as did earnings. In addition, the book of business expanded, and delinquency was sharply lower.

National MI Elects to Slow Its Market Share Growth in 2Q

National Mortgage News, Aug. 3, 2018--Brad Finkelstein (subscription)
National MI deliberately dropped some of its customers in the second quarter, resulting in flat new insurance growth compared with the first quarter and a lower increase versus one year prior.

Arch Regains Top Market Share Among Mortgage Insurers

National Mortgage News, Aug. 1, 2018--Brad Finkelstein (subscription)
Arch MI U.S. returned to having the No. 1 market share among private mortgage insurers as it increased its new insurance written 15% over the previous year.

Relief from HMDA Requirements May Go Further than Banks Realize

National Mortgage News, Aug. 2, 2018--Rachel Witkowski (subscription)
Federal reporting requirements for mortgage data have been a moving target in recent years. Just as one set of policymakers expands reporting rules, another eases them. But bankers are starting to see more signs of clarity.

Mortgage Startup Blend to Offer MetLife Policies With New Unit

Bloomberg, Aug. 6, 2018--Julie Verhage, Katherine Chiglinsky
The San Francisco-based company is launching Blend Insurance Agency. Much like its mortgage platform, the firm will leverage partnerships with large insurers to scale its business by pairing the offerings. One of those initial partners will be MetLife Inc., a U.S. insurer with more than $700 billion in assets.

Closing the Tech Gap on Government Mortgage Loans

American Banker, Aug. 6, 2018--Barbara Cooper-Jones (subscription)
Ginnie Mae SVP outlines how the agency is moderninzing its operations.

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