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Volume 9 | Issue 17 | Tuesday, April 30, 2019

The Lede


CFPB Changes Civil Investigative Demands Policy

The Consumer Financial Protection Bureau last week announced Mortgage Bankers Association-supported changes to its Civil Investigative Demands policies to ensure they provide more information about the potentially wrongful conduct under investigation.


News & Trends

Homeownership Rate Drops for 1st Time in 2 Years

The Census Bureau yesterday said the U.S. homeownership rate fell for the first time in two years amid market volatility and a decline in consumer confidence.

'Below-Average' Home Remodeling Growth Expected by 2020

Home remodeling has been on an extended kick the past few years, with more homeowners opting to stay in their homes longer amid rising home prices and housing inventory shortages. Now, several forecasts see a slowdown in remodeling activity--which, for the mortgage industry, might not be such a bad thing.

Home Insurance Rates Increase Follow the (Disaster) Pattern

Home insurance rates have increased in every state over the past decade--but the biggest increases have occurred in states one might not associate with high-profile disasters.

Study: Black, Hispanic Communities Still Reeling from Foreclosure Crisis

More than 10 years past the Great Recession, African-American and Hispanic communities hit hard by foreclosures have yet to fully recover, said Zillow, Seattle.

Home Sellers' 1Q Price Gains Average $57,500; Home Tenure Dips

ATTOM Data Solutions, Irvine, Calif., said homeowners who sold in the first quarter realized an average price gain of $57,500 since purchase, representing an average 31.5 percent return on the purchase price.

MBA News

MBA Legal Issues & Regulatory Compliance Conference in New Orleans May 5-8

The Mortgage Bankers Association's Legal Issues & Regulatory Compliance Conference takes place May 5-8 at the Hyatt Regency New Orleans.

MBA National Secondary Market Conference & Expo May 19-22

The Mortgage Bankers Association's National Secondary Market Conference & Expo returns to the New York Marriott Marquis May 19-22.

MBA Document Custody Workshop June 20

The Mortgage Bankers Association's popular Document Custody Workshop takes place Thursday, June 20 at the Ritz-Carlton Tysons Corner in McLean, Va.

Top National News

Waters' CFPB Bill Being Readied for House Consideration

National Mortgage Professional, Apr. 26, 2019--Phil Hall
The House may soon vote on a bill introduced by Financial Services Committee Chairwoman Maxine Waters, D-Calif., that would roll back changes to the Consumer Financial Protection Bureau introduced during Mick Mulvaney's term as Acting Director.

Critics Fear Shift at CFPB Will Let Firms Off the Hook

American Banker, Apr. 29, 2019--Kate Berry (subscription)
By refocusing the Consumer Financial Protection Bureau on supervision instead of enforcement, Director Kathy Kraninger says she wants to prevent consumer harm. But skeptics say the new approach could have the opposite effect.

Urban Institute Urges CFPB to Release More Data on Multifamily Lendng

HousingWire, Apr. 26, 2019--Jessica Guerin
The Urban Institute said vague reporting of Home Mortgage Disclosure Act data is a roadblock that prevents analysts from understanding how well a lender is serving its community.

CFPB Announces Debt Collection Town Hall as it Preps New Proposal

National Mortgage News, APr. 29, 2019--Kate Berry (subscription)
The Consumer Financial Protection Bureau is poised to unveil a regulatory proposal by as early as next week on how it plans to reform oversight of debt collectors.

GE's WMC Mortgage Unit, Felled By Financial Crisis, Files Chapter 11 Bankruptcy

Reuters, Apr. 23, 2019--Jonathan Stempel
General Electric Co on Tuesday put the remnants of its WMC Mortgage unit into bankruptcy, 11 days after paying a $1.5 billion U.S. fine over defective subprime mortgages issued by WMC before the 2008 financial crisis.

OCC Official Tied to Wells Fargo Scandal Lands Role Overseeing MidSize Banks

American Banker, Apr. 24, 2019--Kevin Wack (subscription)
Last year, the former top regulatory official overseeing Wells Fargo stood accused of improperly disclosing sensitive information about a government investigation to the scandal-plagued bank. Now Bradley Linskens is getting a new job at the Office of the Comptroller of the Currency, where he has worked for more than two decades.

Wall Street Tells Mortgage Buyers Wider Spreads Are a Point of Entry

Bloomberg, Apr. 23, 2019--Christopher Maloney
Analyst teams at Morgan Stanley and J.P. Morgan have raised their recommendations on the agency mortgage-backed securities sector following the recent widening of mortgage spreads.

Mortgage Fraud Risk Rises for Ninth Consecutive Quarter

24/7 Wall Street, Apr. 29, 2019--Paul Ausick
The national mortgage application fraud risk index rose from 151 to 152 quarter over quarter in the first quarter, according to researchers at CoreLogic.

Victims of Reverse Mortgage Scam Want Protection from Ditech Bankruptcy

HousingWire, Apr. 23, 2019--Jessica Guerin
Homeowners have claims regarding their reverse mortgages with Reverse Mortgage Solutions, a Ditech subsidiary that that was either the lender or servicer on the loans that were part of an alleged scheme. But now, Ditech is in the midst of a bankruptcy that might impact these fraud victims.

Boomerang Buyers: More People Who Lost Homes During Housing Crisis Are Buying Again

USA Today, Apr. 25, 2019--Paul Davidson
There are signs a growing number of Americans who lost homes to foreclosure or a short sale during the housing crisis are buying again or planning to do so in the near future. Home price increases have moderated since last year and mortgage rates have fallen as wage growth has accelerated, creating a positive backdrop for boomerang and other buyers, said MBA Chief Economist Mike Fratantoni.

Morgan Stanley to Pay California $150 Million Over Mortgage Crisis Claims

New York Times, Apr. 25, 2019--Stacy Cowley
Morgan Stanley agreed to pay $150 million to settle claims by the State of California that it misled investors about the risks of mortgage-backed securities sold to two state pension funds for teachers and public employees.

CMBS Market Update

Commercial Property Executive, Apr. 24, 2019--Jeffrey Steele
How will CMBS origination stack up this year? After the first several months of 2019, signs continue to point to a significant decline in volume, though some observers contend the reduction could be less severe than expected. (MBA mention)

Commercial Mortgages Put into Special Servicing Increased in 2018

National Mortgage News, Apr. 29, 2019--Brad Finkelstein (subscription)
Commercial mortgages placed into special servicing grew last year, but default and foreclosure dollar volume fell as legacy loan resolutions outpaced newly distressed loans, according to Fitch Ratings.

About Servicing NewsLink

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