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Volume 8 | Issue 20 | Tuesday, May 15, 2018

The Lede


MBA, Trade Groups Petition FCC on ‘Auto-Dialing' Definition

The Mortgage Bankers Association and 15 other industry trade groups joined the U.S. Chamber of Commerce in a petition to the Federal Communications Commission, asking for a declaratory ruling on the Telephone Consumer Protection Act's definition of Automated Telephone Dialing Systems, also known as "auto-dialing" or "robo-calling."


News & Trends

MBA Releases Disaster Recovery Guide

The Mortgage Bankers Association released a new consumer-facing information brochure, Disaster Recovery: A Resource for Homeowners, available for use by all MBA members, counseling groups, government agencies and organizations that offers assistance and advice to homeowners in the aftermath of a natural disaster.

MBA Urges CFPB to Improve Administrative Adjudication Processes

The Mortgage Bankers Association, in a May 7 letter to the Consumer Financial Protection Bureau, urged the Bureau to emphasize fairness over speed in its administrative adjudication process to ensure against unintended consequences and protect due process.

CoreLogic: Declining Foreclosure Rates Signal Strong Economy

Despite the devastating 2017 hurricanes, CoreLogic, Irvine, Calif., said the national mortgage delinquency rate fell year over year and fell again month over month.

After Years of Growth, Single-Family Rentals ‘Stabilizing'

In the wake of the housing crisis, single-family homes grew to more than one-third of U.S. rental stock nationwide. Now, says the Joint Center for Housing Studies at Harvard University, that dramatic growth has stabilized.

Fitch: U.S. RMBS Risk Diverging on Recent Investor Loans

A rise in non-traditional or no income borrower documentation has led to significant variation in the credit risk of recently originated investor property loans in U.S. residential mortgage-backed securities deals, said Fitch Ratings, New York.

MBA News

MBA National Secondary Market Conference & Expo May 20-23

The Mortgage Bankers Association' National Secondary Market Conference & Expo returns to the Marriott Marquis in New York May 20-23.

MBA Commercial/Multifamily Servicing/Technology Conference in Miami May 20-23

The Mortgage Bankers Association's annual Commercial/Multifamily Servicing and Technology Conference takes place May 20-23 at the Intercontinental Miami.

MBA Education Checklist for Effective Compliance Management Systems Webinar May 15

MBA Education presents a new webinar, A Checklist for Effective Compliance Management Systems, on Tuesday, May 15 from 2:00-3:30 p.m. ET.

MBA Advanced Risk Management for Mortgage Pros Workshop in Washington June 11-13

MBA Education presents its popular Advanced Risk Management for Mortgage Pros Workshop June 11-13 in Washington, D.C.

Top National News

GSE Reform Is Dead--Long Live GSE Reform!

Urban Institute, May 9, 2018--Jim Parrott, Mark M. Zandi
As it becomes apparent that the 115th Congress will not pass legislation to reform Fannie Mae and Freddie Mac, the authors describe the path the current administration will likely take to reform the government-sponsored enterprises administratively.

Civil Rights Groups Challenge HUD's Fair Housing Enforcement

New York Times, May 8, 2018--Glenn Thrush
Civil rights advocates sued the Trump administration on Tuesday over enforcement of the 50-year-old Fair Housing Act, part of an effort to prevent discrimination in the allocation of funds for Gulf Coast hurricane housing and infrastructure reconstruction.

Ben Carson vs. the Fair Housing Act

New York Times, May 13, 2018 (Editorial)
The Times' editors say HUD Secretary Ben Carson is illegally trying to sweep aside rules that are fully consistent with the Fair Housing Act. It supports a lawsuit filed by community groups and says the court should force HUD to reinstate and fully enforce those rules.

CFPB Warns Nationstar that RESPA Penalty May be Coming

National Mortgage News, May 11, 2018--Bonnie Sinnock (subscription)
Nationstar Mortgage may face a Consumer Financial Protection Bureau enforcement action over alleged violations of the Real Estate Settlement Act and other regulations, the Mr. Cooper parent company said.

CFPB to Dramatically Reorganize Operational Structure

HousingWire, May 10, 2018--Kelsey Ramirez
Consumer Financial Protection Bureau Acting Director Mick Mulvaney announced in an email to staff that he plans to reorganize the bureau's operational structure.

Companies With the Most Complaints in CFPB Database Were Mulvaney Donors

Public Citizen, May 8, 2018--Michael Tanglis
Eight of the 10 financial institutions that are the subjects of the most complaints in the Consumer Financial Protection Bureau public database contributed to acting Director Mick Mulvaney while he was in Congress, according to an analysis published by Public Citizen.

Mulvaney Guts CFPB's Student Lending Office

American Banker, May 9, 2018--Kate Berry (subscription)
Mick Mulvaney on Wednesday announced a restructuring of the Consumer Financial Protection Bureau that will strip the agency's student lending office of all functions except consumer education.

Volcker Rule Rewrite Is Said to Drop Key Trading Burden on Banks

Bloomberg, May 15, 2018--Jesse Hamilton, Benjamin Bain
Additional changes the regulators intend to propose include making it easier for banks to stockpile assets that their customers may want to buy in the near term and dialing back compliance burdens for smaller lenders. The agencies expect to release the proposal by the end of the month.

Equifax Reveals How Much Information was Really Exposed in Data Breach

HousingWire, May 8, 2018--Caroline Basile
In a new filing with the Securities and Exchange Commission, the credit reporting agency broke down in detail the types of--and how much exactly--sensitive personal information was exposed to hackers in the breach.

Cities Now Use Taxes to Fight Blight. Is It Working?

Governing Magazine, May 14, 2018--J. Brian Charles
Some cities are turning to vacant property taxes to nudge property owners of both retail and residential spaces to lease, develop or sell their properties before a short-term vacancy turns into what some cities see as blight.

RBS Reaches $4.9 Billion Deal to Settle U.S. Mortgage Bond Investigation

Reuters, May 9, 2018--Nate Raymond, Eric Walsh, Sinead Cruise
Royal Bank of Scotland has agreed to pay a smaller-than-expected $4.9 billion to resolve a U.S. investigation into its sale of mortgage-backed securities, paving the way for a long-awaited return of cash to UK taxpayers who bankrolled its post-crisis survival.

Banks are Walking Away from Low-Income Homebuyers

CNN Monty, May 11, 2018--Lydia DePillis
Newly released federal data on mortgage lending from the Consumer Financial Protection Bureau shows people with low- and moderate-incomes made up only 26.3% of borrowers in 2017, down from 36.6% in 2009. "Profit margins on lending have come down quite a bit," says Mike Fratantoni, chief economist at the Mortgage Bankers Association, which represents both banks and non-banks. "So a number of banks have de-emphasized their mortgage lending, because there are other business lines they can focus on."

Financial Industry Petitions FCC to Make Robocall Lawsuits Harder to Win

National Mortgage News, May 10, 2018--Brad Finkelstein (free story)
If a financial industry petition to the Federal Communications Commission on the use of autodialers is successful, it could make Telephone Consumer Protection Act cases more difficult to prove for consumer attorneys. But a favorable ruling likely won't halt the proliferation of these suits.

Treasury Will Sell $101 Billion in Debt

Wall Street Journal, May 10, 2018
The U.S. will auction $101 billion in securities next week, comprising $42 billion in new debt and $59 billion in previously sold debt.

Downsizing and Servicing Offset Lower Volume at Impac Mortgage

National Mortgage News, May 10, 2018--Bonnie Sinnock (subscription)
Impac Mortgage Holdings Inc. generated almost $4 million in net income during the first quarter as it continued to downsize to adjust for origination declines and benefited from servicing gains.

Alternatives to Reverse Mortgages

UExpress, May 11, 2018--Lew Sichelman
Home Equity Conversion Mortgages may be a good choice for some seniors who fear they might outlive their retirement funds and will need cash to enjoy their remaining years. But they aren't the only options elder owners might want to consider.

Massive Secondary Mortgage Sale

Mortgage Daily, May 8, 2018
Capital One Financial Corp. is selling the loans to Credit Suisse AG-subsidiary DLJ Mortgage Capital Inc. The loan sale follows Capital One's previously announced exit from the origination of residential and home-equity loans.

100% LTV Program Launches

Mortgage Daily, May 11, 2018
The product, dubbed Community Program by Arch Mortgage Guaranty Co., allows loan-to-value ratios as high as 100 percent for professionals--including mortgage bankers.

Angel Oak Mortgage Plans to Double Down on Non-QM Lending in 2018

National Mortgage News, May 14, 2018--Bonnie Sinnock (subscription)
Angel Oak Mortgage, which originated more than $1 billion in loans outside the ability-to-repay rule's safe harbor last year, plans to produce at least twice that volume in 2018.

Mortgage Relief for Those Impacted by Hawaiian Volcano

DS News, May 14, 2018--David Wharton
Several lenders, including Wells Fargo and Bank of Hawaii, have announced mortgage relief for homeowners impacted by the disaster.

About Servicing NewsLink

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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

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