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Volume 9 | Issue 32 | Tuesday, August 13, 2019

The Lede


Fannie Mae, Freddie Mac Postpone URLA

Fannie Mae and Freddie Mac last Thursday announced a delay to the Feb. 1, 2020 implementation date for the redesigned Uniform Residential Loan Application and automated underwriting system implementations.


News & Trends

CoreLogic: Delinquency Rates Steady at 20-Year Low

Ahead of the Mortgage Bankers Association's National Delinquency Report release this morning, CoreLogic, Irvine, Calif., reported the May serious delinquency rate tied with April as the lowest for any month in nearly 14 years.

ATTOM: Foreclosure Filings Down 18% in First Half of Year

ATTOM Data Solutions, Irvine, Calif., reported an 18% drop in U.S. foreclosure filings in the first six months of the year and an 82 percent decline from the peak of foreclosures.

CMBS Supply-Demand Fundamentals Stable; Freddie Mac Defeasance Jumps

Commercial property market supply and demand fundamentals slipped one point in the first quarter but remained stable, reported Moody's Investors Service, New York.

MBA News

MBA Regulatory Compliance Conference 2019 in Washington Sept. 22-24

The Mortgage Bankers Association's annual Regulatory Compliance Conference takes place Sept. 22-24 at the Grand Hyatt in Washington, D.C. 

MBA Risk Management, QA and Fraud Prevention Forum in Chicago Sept. 15-17

The Mortgage Bankers Association's Risk Management, QA and Fraud Prevention Forum takes place Sept. 15-17 at the Sheraton Grand Chicago.

MBA Education Advanced Risk Management Concepts Workshop in Chicago Sept. 15

MBA Education presents a special edition of its Advanced Risk Management Concepts Workshop on Sunday, Sept. 15 in conjunction with the MBA Risk Management, Quality Assurance and Fraud Prevention Forum in Chicago.

MBA Education/Compliance Essentials Managing the Risks of CFPB and State Examinations Sept. 15

MBA Education and Compliance Essentials present a workshop, Managing the Risks of CFPB and State Examinations, on Sunday, Sept. 15 at the Sheraton Grand Chicago, in conjunction with the MBA Risk Management, QA and Fraud Prevention Summit.

Top National News

What Prevents Non-QM Loans From Closing? The Devil is in the Details

National Mortgage News, Aug. 8, 2019--Bonnie Sinnock (subscription)
More applications for non-QM loans might close if lenders and originators beefed up efforts to address missing or outdated information, according to a new Computershare study.

A Danish Bank is Offering Mortgage Rates with Negative Interest Rates--Why You Shouldn't Wish for that to Happen in the U.S.

MarketWatch, Aug. 12, 2019--Jacob Passy
Places like Europe and Japan have another economic hurdle that's made negative rates possible: Their populations are aging, which means their labor force is shrinking. "That's an enormous headwind on economic growth," said Michael Fratantoni, chief economist at the Mortgage Bankers Association, a trade group that represents the home-loan industry. "That keeps interest rates extraordinarily low."

CFPB Study Shows Alternative Credit Models Lead to More Loans, Cheaper Loans

HousingWIre, Aug. 8, 2019--Ben Lane
According to the Consumer Financial Protection Bureau, Upstart Network's credit underwriting model uses traditional underwriting data like borrowers' income and assets, along with various categories of alternative data, including information related to borrowers' education and employment history.

New Villain in Battle over CFPB Mortgage Rule: Appendix Q

American Banker, Aug. 12, 2019--Kate Berry (subscription)
Mortgage lenders are urging the Consumer Financial Protection Bureau to overhaul a set of little-known guidelines for how they document a borrower's creditworthiness.

Former Freddie CEO: Trump's Treasury Sees GSE Reform as 'Mostly Happened'

HousingWire, Aug. 7, 2019--Kathleen Howley
In a 17-page paper published on Monday, "GSE Reform: None or Mostly Done?", Former Freddie Mac CEO Donald Layton reveals a conversation he had a few months ago in a meeting with an unnamed senior official in the U.S. Treasury who told him: "GSE reform has already mostly happened."

HUD Expands Section 220 Program to All Opportunity Zones

National Mortgage Professional, Aug. 9, 2019--Phil Hall
FHA's Section 220 Program insures lenders against loss on mortgage default and has been used for urban rental housing in areas targeted for overall revitalization. HUD's announcement expands eligibility of mortgages insured under this program to all 8,764 Opportunity Zone localities, including those in rural areas.

Ocwen: Profitability May Still Be a Year Away

National Mortgage News, Aug. 6, 2019--Bonnie Sinnock (subscription)
Steeper rate declines contributed to a deeper quarterly net loss at Ocwen Financial, forcing it to extend its timeline for returning to profitability.

Moody's Predicts Rise in Lender Profits

HousingWire, Aug. 6, 2019--Jessica Guerin
A recent report from Moody's revealed that banks reported a 0% net change in residential mortgage underwriting standards in the second quarter of 2019. And, with interest rates falling, it expects standards to "remain stable and possibly to tighten modestly."

Falling Yields Rock U.S. Mortgage Bond Market

Reuters, Aug. 7, 2019--Richard Leong
Some $8.4 trillion in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae have been rocked by the swift decline in bond yields on worries that a wave of mortgage refinancing would erode the value of these bonds. (MBA mention)

Could There Ever Be Negative Long-Term Mortgage Rates in the U.S.?

National Mortgage News, Aug. 7, 2019--Bonnie Sinnock (subscription)
Falling rates: The phrase is music to a mortgage originator's ears. But is it possible, even when it comes to the volume stimulating effects that a favorable rate environment brings, for there to eventually be too much of a good thing?

Homeowners Rush to Refinance, Thanks to Falling Yields

Wall Street Journal, Aug 8, 2019--Matt Wirz, Christina Rexrode, Rachel Louise Ensign (subscription)
Falling bond yields have pushed mortgage rates to their lowest level in nearly three years, spurring a rush by homeowners to refinance.

Mall Landlords Weigh Becoming Lenders to Blunt Retail Apocalypse

Bloomberg, Aug. 7, 2019--Laruen Coleman-Lochner, Eliza Ronalds-Hannon
Mall landlords accustomed to offering rent reductions to ailing retailers are mulling a new strategy to forestall the industry's collapse: positioning themselves as lenders to tenants struggling to stay afloat.

Can the American Dream Mega-Mall Succeed in a Changing Retail World?

National Real Estate Investor, Aug. 8, 2019--Liz Wolf
The $5 billion American Dream mall project in New Jersey is betting big on entertainment components. Can it succeed?

Millennials Drive Mortgage Refinance Boom, and Lenders are Scrambling

CNBC, Aug. 9, 2019--Diana Olick
Mortgage interest rates have been falling since May, so borrowers, especially millennials, are rushing to refinance. Applications to refinance were up a stunning 116% this week compared with a year ago, according to the Mortgage Bankers Association. That has lenders scrambling to keep up.

About Servicing NewsLink

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