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Volume 9 | Issue 33 | Tuesday, August 20, 2019

The Lede


MBA: Mortgage Delinquencies Rise in Second Quarter

Mortgage delinquencies rose in the second quarter as the economy showed signs of slowing, putting more homeowners at risk, the Mortgage Bankers Association reported last week.


News & Trends

MISMO Seeks Input on Consent Language for Tax Transcripts to Comply with Taxpayer First Act

MISMO®, the mortgage industry standards organization, seeks industry participants to collaborate on developing standardized language to gain consent for use of tax transcripts by stakeholders throughout the mortgage process.

FHA Issues New Condo Approval Rule

The Federal Housing Administration yesterday published a new final regulation aimed at relaxing requirements for condominium projects seeking approval for FHA eligibility.

HUD Proposes Revised ‘Disparate Impact' Rule

HUD on Friday published a proposed rule to amend the HUD interpretation of the Fair Housing Act's disparate impact standard.

ATTOM: Foreclosures Down by Half from 2016

ATTOM Data Solutions, Irvine, Calif., said properties in foreclosure in the second quarter fell by nearly in half from three years ago.

The Inverted Yield Curve's Effect on CRE

The recent yield curve inversion may raise concerns about a potential recession, but it is unlikely to harm commercial real estate investors.

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

U.S. Mortgage Debt Hits Record, Eclipsing 2008 Peak

Wall Street Journal, Aug. 13, 2019--Harriet Torry (subscription)
Mortgage balances rose by $162 billion in the second quarter to $9.406 trillion, surpassing the high of $9.294 trillion in the third quarter of 2008, the Federal Reserve Bank of New York said Tuesday.

U.S. Will Back More Condominium Loans Aimed at First-Time Buyers

Wall Street Journal, Aug. 14, 2019--Laura Kusisto (subscription)
The move, to be announced Wednesday by the Federal Housing Administration, could help revive the entry-level condo market for first-time buyers because FHA-backed loans require only a 3.5% down payment and lower credit score than conventional loans.

HUD Plan to Alter Anti-Discrimination Rule Called 'Deepy Cynical'

American Banker, Aug. 16, 2019--Kate Berry (subscription)
The agency says the "disparate impact" standard needs to be amended to align with a recent Supreme Court ruling. But consumer advocates say the change would make it more difficult for borrowers to allege discrimination under the Fair Housing Act.

HUD Proposal Raises Bar on Housing Discrimination Complaints

Wall Street Journal, Aug. 19, 2019--Lalita Clozel (subscription)
HUD is moving to roll back an Obama-era policy aimed at rooting out racial bias in housing, the latest move by the Trump administration to weaken a legal tool combating unintentional discrimination.

Lender Risk from CFPB Underwriting Rule Tested in Ohio Case

National Mortgage News, Aug. 15, 2019--Kate Berry (subscription)
Lenders have long worried that borrowers would use the Consumer Financial Protection Bureau's mortgage underwriting rule to fight foreclosure in court. But the outcome of the first known legal attempt may discourage others from trying.

Reform Plan Shouldn't Lead to Ratings Cut in the Near Term: Fitch

National Mortgage News, Aug. 13, 2019--Brad Finkelstein (subscription)
Fannie Mae and Freddie Mac's corporate debt ratings shouldn't be downgraded in the near term as a result of the Treasury Department's to-be-released government-sponsored enterprise reform plan, Fitch Ratings said.

Removal of URLA Language-Preference Question Sparks Controversy

Scotsman Guide, Aug. 14, 2019--Arnie Aurellano
Implementation of the redesigned Uniform Residential Loan Application has been delayed due to changes to questions regarding the applicant's language preferences. Some industry organizations, including the Mortgage Bankers Association, asked FHFA to reconsider, claiming that it would subject lenders to practical issues related to communicating in an applicant's preferred language, as well as legal risks if they are unable to do so.

Department Stores See Worst Drop Since Macy's Last Cut Its Outlook

Bloomberg, Aug. 14, 2019--Janet Freund
U.S. department store stocks cratered Wednesday after Macy's cut its annual outlook, fueling the worst trading day for the index since the last time the Bloomingdale's parent slashed its forecasts in January.

FHA's Distressed Asset Stabilization Program Should Be Improved, Not Abandoned

Urban Institute, Aug. 14, 2019--Laurie Goodman, Edward Golding, Jim Parrott
The authors argue that the DASP program is not fatally flawed; rather, DASP is a powerful tool that has helped thousands of families avoid foreclosure and has reduced stress on the FHA's insurance fund, making it easier for FHA to keep premiums low to ensure broad access to homeownership.

Bankers Welcome Rush of Refis, But It's No Cure-All

American Banker, Aug. 15, 2019--Andy Peters (subscription)
Mortgage refinancing activity is back from the dead thanks to declining interest rates, and that's good news for banks that will be starved for additional revenue as lending margins keep tightening. But as with many good things, there's a catch. (MBA mention)

American Mortgage Service Co. and Eustis Mortgage Plan to Merge

HousingWire, Aug. 16, 2019--Ben Lane
Eustis Mortgage is headquartered in New Orleans and has been in business since 1956 and its companies include Finance Home America, Verity Mortgage, Legacy Mortgage and Prosperity Mortgage Advisors. American Mortgage Service Co. was founded in Cincinnati in 1975 and has grown into a multi-state lender with more than 40 locations.

Will Blockchain Revolutionize Mortgage Lending?

Forbes, Aug. 19, 2019--Breana Patel
What DLT brings to the table is the ability to store all of the myriad paper documents that need be conveyed between players onto a distributed network that is more secure than the status quo. The data would be easier to access, with current steps in the process that take weeks happening in a matter of seconds.

About Servicing NewsLink

President and CEO: Robert Broeksmit, CMB

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

Advertising Opportunities: Bill Farmakis 203/834-8832

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