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Volume 8 | Issue 41 | Tuesday, October 09, 2018

The Lede


MBA Asks Treasury, IRS to Clarify Business Income Deduction Rules

The Mortgage Bankers urged the Treasury Department and the Internal Revenue Service to further clarify its rules governing qualified business income deductions under Section 199A of the Internal Revenue Code.


News & Trends

Fannie Mae Names Hugh Frater Interim CEO; Tim Mayopoulos to Leave Oct. 15

Fannie Mae, Washington, D.C., appointed Hugh R. Frater as Interim CEO, effective October 16, subject to final Federal Housing Finance Agency approval. He will succeed Timothy J. Mayopoulos, who announced his intention to depart in July and will leave the company on October 15.

FHFA Requests Input on GSE Proposed Duty to Serve Plan Modifications

The Federal Housing Finance Agency requested public input as part of the Agency's consideration of proposed modifications to Fannie Mae and Freddie Mac's 2018-2020 Underserved Markets Plans under the Duty to Serve program.

Foreclosed Homes Appreciating Faster than Typical U.S. Home

Homes that were foreclosed on during the housing crisis are now rising in value by more than 10 percent annually, more than 3.5 percentage points faster than the typical U.S. home, said Zillow, Seattle.

Black Knight: 474,000 Mortgaged Properties in FEMA-Declared Florence Disaster Areas

Black Knight, Jacksonville, Fla., said nearly 500,000 mortgaged properties sit in the 34 counties in North and South Carolina declared as disaster areas resulting from Hurricane Florence.

CoreLogic Says Mortgage Delinquency, Foreclosure Rates at 12-Year Low

CoreLogic, Irvine, Calif., said U.S. foreclosure and mortgage delinquency rates fell to 12-year lows in July.

CMBS Delinquency Rate Reduction Accelerates; Possible 'Inflection Point' Ahead?

The commercial mortgage-backed securities delinquency rate dropped "markedly" once again in September, reported Trepp, New York.

MBA News

MBA Accounting & Financial Management Conference in Orlando Nov. 12-14

The Mortgage Bankers Association's MBA Accounting & Financial Management Conference takes place in Orlando Nov. 12-14.

MBA Disaster Recovery Guide Available

The Mortgage Bankers Association has developed both English- and Spanish-language versions of Disaster Recovery: A Resource for Homeowners, a consumer-facing informational guide.

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).

Top National News

10 Years Later: How The Housing Market Has Changed Since The Crash

Washington Post, Oct. 4, 2018--Michele Lerner
The crisis is still in the forefront of the minds of everyone in the lending industry and influences their decisions, says Michael Fratantoni, chief economist of the Mortgage Bankers Association in Washington. "Many of the products that started the crisis aren't around and the practices that started it are severely constrained," he said.

NYSE Owner International Exchange Acquires Full Control of MERS

National Mortgage News, Oct. 4, 2018--Bonnie Sinnock (subscription)
Intercontinental Exchange, the owner of the New York Stock Exchange, has purchased the remaining equity in Merscorp Holdings it did not already own.

California Ballot Initiative Would Harm Affordable Housing

National Mortgage News, Oct. 2, 2018--Paul Centopani (subscription)
If Proposition 10 passes vote this November, the ramifications will be felt on California's affordable housing, according to the Mortgage Bankers Association.

With Kavanaugh Confirmed, Will Supreme Court Take Aim at the CFPB?

HousingWire, Oct. 8, 2018--Ben Lane
Newly sworn-in Supreme Court Justice Brett Kavanaugh believes the Consumer Financial Protection Bureau, as it is currently structured, is unconstitutional. And he's written as much.

CRA, Capital Rules, Reg Relief: Regulators' Busy Fall To-Do List

American Banker, Oct. 5, 2018--Neil Haggerty (subscription)
At a Senate Banking Committee hearing last week, Fed Vice Chairman of Supervision Randal Quarles, Federal Deposit Insurance Corp. Chairman Jelena McWilliams, Comptroller of the Currency Joseph Otting and National Credit Union Administration Chairman J. Mark McWatters discussed their progress in updating capital requirements, modernizing how they enforce the Community Reinvestment Act and continuing to deal with the continuing enforcement issues at Wells Fargo.

Waters Bill Would Reverse Mulvaney's Deregulatory Efforts at CFPB

National Mortgage News, Oct. 2, 2018--Hannah Lang (subscription)
Rep. Maxine Waters, D-Calif., unveiled a bill Tuesday to unwind Consumer Financial Protection Bureau policies instituted by acting Director Mick Mulvaney.

User Experience is Biggest Hindrance in Fight Against Mortgage Fraud

National Mortgage News, Oct. 3, 2018--Paul Centopani (subscription)
Seventy-one percent of financial services firms said customer expectations influence the methods they use to detect fraud, according to Transunion. However, many cyber securitizations lack real-time adjustments or result in poor user experience.

Judge Tosses Class Action Suit Against Zillow

HousingWire, Oct. 3, 2018--Jessica Guerin
U.S. District Judge John C. Coughenour tossed out the suit, stating that the investor plaintiffs, in their attempt to prove that Zillow knowingly violated the Real Estate Settlement Procedures Act, actually proved otherwise.

It's Been One Year Since HUD Shook Up the Reverse Mortgage Industry

HousingWire, Oct. 2, 2018--Jessica Guerin
Tuesday marks exactly one year since HUD implemented HECM program changes in a move that took lenders by surprise and drastically impacted the reverse mortgage business.

Annual HECM Endorsements Sink to 13-Year Low

Mortgage Daily, Oct. 2, 2018
During September, just 2,880 home-equity conversion mortgages were endorsed by FHA, the second-slowest month on record since at least December 2008.

Mortgage Delinquencies from Florence Could Hit VA Loans Hardest

National Mortgage News, Oct. 8, 2018--Paul Centopani (subscription)
Delinquencies will be on the rise and Veterans Affairs loans have greater density within FEMA-declared disaster zones from Hurricane Florence, according to Black Knight.

Bank HEL Delinquency Soars

Mortgage Daily, Oct. 4, 2018
Quarterly performance on bank-owned home-equity loans substantially deteriorated, an American Bankers Association report said.

Consumer Bankruptcies Drop from Month, Yr Earlier

Mortgage Daily, Oct. 3, 2018
A sharp drop in monthly consumer bankruptcy filings was complimented by a year-over-year improvement, the American Bankruptcy Institute reported.

Shopping-Mall Vacancies Are Highest in Seven Years After Big-Box Closings

Wall Street Journal, Oct. 3, 2018--Esther Fung (subscription)
Rising shopping-mall vacancies across the U.S. are driving down rents, signaling that many retail centers continue to struggle despite the country's strong economic growth and buoyant consumer confidence.

Cybersecurity Spending's Way Up. Is it Overkill, or Not Enough?

American Banker, Oct. 2, 2018--Andy Peters (subscription)
The cost of fighting cybercrime at banks rose 9% over a recent 12-month period, according to a new LexisNexis Risk Solutions survey of 175 executives from bank and nonbank financial services firms.

Wells Fargo Is Planning Its First Post-Crisis Mortgage Bond

Bloomberg, Oct. 4, 2018--Adam Tempkin
Wells Fargo & Co. is planning its first post-crisis offering of bonds tied to U.S. home loans without government backing. The $441 million non-agency bond will include top portions, which will be rated AAA, sources said.

Acquisition of PHH Corp. a Done Deal

Mortgage Daily, Oct. 4, 2018
Ocwen Financial Corp.'s acquisition of PHH Corp., which has operated as an independent organization for more than a dozen years, has been completed.

Bridge Loans Can Be an Attractive Financing Strategy for Value-Add Investments

National Real Estate Investor, Oct. 5, 2018--Shahin Yazdi
Bridge loans may be the right financing strategy for value-add investors with a clear plan to increase property income.

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