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Volume 8 | Issue 28 | Tuesday, July 10, 2018

The Lede


MBA Letter Urges Bureau to Use Clear Guidance on Compliance Issues

In its latest letter to the Consumer Financial Protection Bureau/Bureau of Consumer Financial Protection, the Mortgage Bankers Association reiterated its criticism of the Bureau's "regulation by enforcement" practices and urged the Bureau to adopt guidance principles to provide certainty to its rules and regulations.


News & Trends

Bureau Says It Will Line up HMDA Exemptions with New Reg Relief Law

The Consumer Financial Protection Bureau yesterday issued a statement signaling its intent to align its Home Mortgage Disclosure Act policies with the recently passed Economic Growth, Regulatory Relief and Consumer Protection Act.

Despite Record Tappable Equity, Borrowing Hits 4-Year Low

Black Knight, Jacksonville, Fla., said despite record-setting levels of "tappable" equity growth in the first quarter, the share of total equity withdrawn by borrowers hit a four-year low.

Fitch: U.S. RMBS Rep & Warranties Have ‘Room for Improvement

Fitch Ratings, New York, said some new U.S. residential mortgage-backed securities deals are coming to market of late with rep and warranty frameworks that are showing signs of slippage at a time when they should be taking on greater importance.

CRE Transparency Improves Globally; U.S. ‘Most Transparent'

JLL, Chicago, said governments worldwide have been gradually forging greater transparency in real estate markets, addressing growing demands from investors and the public to deliver significant change.

Mulvaney Taps Brian Johnson as Bureau Acting Deputy Director

It's been a busy few weeks at the Bureau of Consumer Financial Protection/Consumer Financial Protection Bureau, personnel-wise.

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 Advanced Servicing Workshop Aug. 8-9

MBA Education presents its Advance Servicing Workshop in Irving, Texas Aug. 8-9.

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 Education School of Mortgage Servicing July 16-26

MBA Education offers its popular School of Mortgage Servicing instructor-guided online course July 16-26.

Top National News

CFPB's Compliance Approach Makes Regulatory Guidance Unreliable: MBA

National Mortgage News, July 5, 2018--Elina Tarkazikis (free article)
The Consumer Financial Protection Bureau's practice of "regulation by enforcement" and use of nonbinding guidance materials makes its regulatory efforts "unfair and ineffective" to lenders and servicers, claims the Mortgage Bankers Association.

A Farewell to ARMs? Americans Still Shunning Adjustable-Rate Mortgages 10 Years After the Crisis

MarketWatch, July 9, 2018--Andrea Riquier
As the financial crisis gathered steam, Americans fled adjustable-rate mortgages. The share of all mortgage applications with floating rates sank below 1% in late 2008. A decade later, their share still remains low: 6% in early June, according to the Mortgage Bankers Association, versus an average of about 20% in the ten years before 2008.

CFPB Set to Issue HMDA Guidance This Summer

National Mortgage News, July 5, 2018--Kate Berry (subscription)
The Consumer Financial Protection Bureau plans to issue guidance later this summer on how it will give community banks partial exemptions from Home Mortgage Disclosure Act requirements.

CFPB Official Who Challenged Mulvaney for Top Job is Stepping Down

CNN, July 6, 2018--Dona Borak
Leandra English, a top Consumer Financial Protection Bureau official, is stepping down from the agency and ending a legal fight to become acting chief.

More White Knuckles for Lenders as Flood Insurance Deadline Approaches

National Mortgage News, July 9, 2018--Hannah Long (subscription)
Congress has until July 31 to renew the program or risk a lapse in coverage, which would create a new round of headaches for lenders and real estate agents. Home sales in high-risk flood areas could stall, and policyholders would be unable to renew their insurance in the middle of hurricane season.

Fannie's Take on Paying for PMI Seeks to Avoid 'Charter Creep' Criticism

National Mortgage News, July 10, 2018--Brad Finkelstein (subscription)
A Fannie Mae test to handle the private mortgage insurance process for lenders may raise concerns about charter creep, but the effort reflects its mandate to explore new credit-risk transfer alternatives.

How Private-Label Investors are Beating the GSEs at their Own Game

National Mortgage News, July 3, 2018--Brad Finkelstein (subscription)
Fannie Mae and Freddie Mac enjoy considerable market advantages because of their lower cost of capital and significant government subsidies. But with some conforming loans, the private market is finding a way to compete with the government-sponsored enterprises.

Freddie Mac: ACIS Loss Coverage Reaches $10 Billion

HousingWire, July 6, 2018--Alcynna Lloyd
Freddie Mac announced on Friday that it has obtained a new insurance policy under its Agency Credit Insurance Structure, which will provide a combined maximum limit of up to $294 million of losses on single-family loans made under the Home Affordable Refinance Program.

Home Street to Sell $5B in Mortgage Servicing Rights

American Banker, July 3, 2018--Paul Davis (subscription)
The $6.9 billion-asset company said in a press release Tuesday it will sell the rights to service about $5 billion in unpaid balances for single-family mortgages. It did not identify the buyer or disclose the price of the deal.

New York's Iconic Plaza Hotel Sold to Qatar Fund for $600 Million

Wall Street Journal, July 3, 2018--Craig Karmin, Keiko Morris (subscription)
Katara Hospitality, which buys and manages hotels around the world for the Qatar government, has acquired full ownership of the 1907 property for $600 million.

RBS to Pay $20 Million to Illinois Pension Funds over Crisis-Era Mortgage Bonds

HousingWire, July 5, 2018--Ben Lane
For the third time this year, the Royal Bank of Scotland is about to pay up over the bank's mortgage practices in the run-up to the housing crisis.

Decade-Low Monthly Reverse Mortgage Production

Mortgage Daily, July 5, 2018
It's been more than a decade since the production of new federally insured reverse mortgages came in as low as it did last month.

Overall Share of Equity Withdrawals Drops to 4-Year Low

HousingWire, July 9, 2018--Jessica Guerin
American homeowners have record amounts of equity in their homes, but the percentage of tappable equity withdrawn fell in the first quarter of 2018, according to data released Monday by Black Knight.

Back-Office Innovations Help Banks Dump Costly Real Estate

American Banker, July 6, 2018--Andy Peters (subscription)
JLL said in a recent report that this mass relocation to less-expensive space could save banks--all of which are trying to reduce overhead any way they can--an estimated $800 million a year in real estate costs.

Consumer Bankruptcy Filings Decline

Mortgage Daily, July 6, 2018
The American Bankruptcy Institute reported a month-over-month and year-over-year reduction in the number of new consumer bankruptcy cases.

Chicago Targets ‘Zombie Housing' for Renewal, Block by Block

U.S. News & World Report, July 9, 2018--Anne Marie Kukec
The city, nonprofit community groups, financial institutions and others are partnering to revitalize housing left behind in the foreclosure crisis.

About Servicing NewsLink

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