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Volume 9 | Issue 31 | Tuesday, August 06, 2019

The Lede


GOP Senators Press Agencies to Loosen Regulations

A group of Republican senators, mostly from the Senate Banking Committee, sent a letter to federal agencies urging them to continue to relax banking regulations.


News & Trends

MBA Offers FTC Recommendations on Safeguarding Customer Information

In the wake of yet another high-profile data security breach, this time involving Capital One, the Mortgage Bankers Association this week sent a letter to the Federal Trade Commission offering recommendations on a proposed rulemaking on standards for safeguarding customer information.

CFPB Extends Comment Period for Debt Collection Proposal

The Consumer Financial Protection Bureau announced Friday it extended the comment period by 30 days on its Notice of Proposed Rulemaking implementing the Fair Debt Collection Practices Act.

New Coastal Homes Raise Flood Risks

An analysis by Climate Central, Princeton, N.J., and Zillow, Seattle, shows nearly 20,000 homes built in the past decade are at significant risk of chronic coastal flooding by 2050.

J.D. Power: Primary Loan Services Have Trust Issues with Customers

J.D. Power, Costa Mesa, Calif., said mortgage servicers havesome of the lowest customer service rankings in 2018 among service industries.

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

Lenders Dread Prospect of Fannie, Freddie Losing CFPB Exemption

National Mortgage News, Aug. 2, 2019--Kate Berry (subscription)
Mortgage lenders are fearful that the bottom will fall out of the housing market if the Consumer Financial Protection Bureau's proposal to revise underwriting rules reduces the volume of loans sold to Fannie Mae and Freddie Mac.

As Mortgage-Interest Deduction Vanishes, Housing Market Offers a Shrug

New York Times, Aug. 4, 2019--Jim Tankersley, Ben Casselman
The mortgage-interest deduction, a beloved tax break bound tightly to the American dream of homeownership, once seemed politically invincible. Then it nearly vanished in middle-class neighborhoods across the country, and it appears that hardly anyone noticed.

HUD Plan Would Raise Bar for Claims of Fair Lending Abuse

National Mortgage News, July 31, 2019--Hannah Lang (subscription)
Under a HUD proposal that circulated Wednesday but has not officially been unveiled, a consumer would have to follow a more rigorous five-step framework to demonstrate that discrimination occurred. The "disparate impact" doctrine can be used to punish lenders for discriminatory effects even if none were intended.

HUD Loan Sale Program Puts Consumers in Harm's Way: GAO

National Mortgage News, Aug. 2, 2019--Elina Tarkazikis (subscription)
Mortgage loans sold through HUD's Distressed Asset Stabilization Program- mainly to private equity firms -are more likely to result in foreclosure than unsold loans, according to the GAO report.

Ginnie Mae Takes Steps to Squash VA Loan Churning

HousingWIre, Aug. 1, 2019--Jessica Guerin
Ginnie Mae is taking yet another step to squash abuses, announcing Thursday it is moving forward with a proposal to remove VA-backed cash-out refinances with high loan-to-value ratios from its flagship securities.

FDIC Chief Warns Banks Could Face Fines for Cyber Breaches

National Mortgage Professional, Aug. 2, 2019--Phil Hall
FDIC Chair Jelena McWilliams stated that cybersecurity was "something we take very seriously." She warned banks that they could face enforcement penalties if they allow cybersecurity breaches to impact their data safety.

Fannie Mae Preparing to Handle Transitions in QM, Mortgage Rates

National Mortgage News, Aug. 1, 2019--Bonnie Sinnock (subscription)
Fannie Mae's current tack could help it weather some of the new challenges confronting it, including the planned expiration of its qualified mortgage rule exemption and rate-driven earnings volatility.

Wells Fargo to Tech Vendors: Please Send Us a Check

Wall Street Journal, Aug. 2, 2019--Rachel Louise Ensign (subscription)
Wells Fargo & Co., in cost-cutting mode, recently asked outside technology consultants to refund some of the money the bank has spent with them in the past year, saying the vendors benefited from its regulatory problems.

OneWest Bank to Cough Up Cash Over Racial Bias Allegations During Mnuchin's Reign

HousingWire, July 30, 2019--Jessica Guerin
OneWest Bank is finally able to put two-year-old allegations of housing discrimination to rest as HUD approved a settlement Monday that will see the bank hand over a chunk of change to end the ordeal.

America's Housing Affordability Crisis Spreads to the Heartland

Bloomberg, July 30, 2019--Prashant Gopal, Reade Pickert, Noah Buhayar
Low mortgage rates and thriving employment should be the recipe for a strong housing market. Instead, they're deepening America's affordability crisis.

Tapping Homes for Cash to Get Tougher Under New FHA Limits

Wall Street Journal, Aug. 1, 2019--Ben Eisen (subscription)
The Federal Housing Administration, which insures loans for mostly first-time buyers, plans to announce Thursday it will limit cash-out refinancings in its program. Borrowers will be able to pull cash out only when the new loan amounts to 80% of the value of the home or less, down from 85%.

CMBS Issuance Focuses on 'Bulletproof' Retail Loans

National Real Estate Investor, July 31, 2019--Beth Mattson-Teig
Investors are getting increasingly concerned about the outlook for retail-backed commercial mortgage-backed securities 2.0 loans.

Tax Credits Could Help Foreclosure Victims Buy Homes Again

San Bernardino Sun, Aug. 1, 2019--Jeff Lazerson
Tax credits would be new for mortgage victims, but it's not unprecedented.  CPA Jeff Hipshman of HMWC CPA's and Advisors points to employment-related tax credits.

For the First Time Ever, Mortgage Bonds Are Being Sold at a Negative Rate

Bloomberg, Aug. 5, 2019--Frances Schwartzkopff
In the world's biggest covered-bond market, a Danish bank says it's now ready to sell 10-year mortgage-backed notes at a negative coupon for the first time.

Banks Tighten Standards on Commercial Real Estate, Credit Card Loans

Reuters, Aug. 5, 2019--Ann Saphir
U.S. banks left loan standards unchanged on commercial and industrial loans to large and mid-sized firms during the second quarter, even as they eased standards on such loans to smaller firms and eased most terms for all size firms, according to a survey of bank officers published on Monday.

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