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Volume 9 | Issue 8 | Tuesday, February 26, 2019

The Lede

 

Broeksmit: Servicers, Customers Need Consistent Standards

ORLANDO--Mortgage Bankers Association President and CEO Robert Broeksmit, CMB, said the mortgage servicing industry needs clear and definable standards to improve customer service and reduce costs.

 

News & Trends

 
GSE Refi Volume Falls in 4Q; Finishes HARP with 3.5M Refis

The Federal Housing Finance Agency reported Fannie Mae and Freddie Mac completed 245,620 refinances in the fourth quarter, a slight decrease from 253,135 in the third quarter.

Fintechs Drive Personal Loans to Record Levels

TransUnion, Chicago, said personal loan balances increased by $21 billion in the past year to close 2018 at a record high $138 billion, with much of this growth driven by online loans originated by fintechs.

CMBS Supply/Demand Fundamentals Stable; Defeasance Surges

Commercial property market supply and demand fundamentals remained relatively stable in third-quarter 2018, said Moody's Investors Service, New York.

Black Knight: January Prepayment Rate at 18-Year Low

Black Knight, Jacksonville, Fla., released its January First Look Mortgage Monitor, reporting loan prepayments fell to an 18-year low as seasonal home sales reductions outweighed a rise in refinance incentives.

Closing Disclosures Continue to Cause Mortgage QC Trouble

A study from MetaSource, Salt Lake City, said closing disclosures and other requirements imposed by the Consumer Financial Protection Bureau's late 2015 enhanced disclosure rules continue to pose quality control challenges.

MBA News

 
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 Commercial/Multifamily Servicing & Technology Conference in L.A. May 14-17

The Mortgage Bankers Association's annual Commercial/Multifamily Servicing & Technology Conference takes place May 14-17 at the J.W. Marriott L.A. Live in Los Angeles.

Top National News

 
Mortgage Servicers to Take Center Stage in Shift to Uniform MBS

Bloomberg, Feb. 19, 2019--Christopher Maloney
Mortgage loan servicers will be thrust into the spotlight as the success of the so-called Uniform mortgage-backed securities set to launch on June 3 is highly dependent on the continued convergence of prepayment speeds seen in Fannie Mae and Freddie Mac securities.

Senate Panel Sets Vote on Calabria Nomination for FHFA

American Banker, Feb. 21, 2019--Neil Haggerty (subscription)
The Senate Banking Committee will vote Tuesday on Mark Calabria's nomination to succeed Mel Watt as director of the Federal Housing Finance Agency.

Here's Why the Housing Market Should Expect a Cash-Out Refi Boom

HousingWire, Feb. 20, 2019--Jessica Guerin
Home equity levels are climbing while mortgage interest rates are falling, and this has some experts predicting an inevitable boom in cash-out refinances.

House Banking Panel to Examine Wells Fargo, CFPB in March

National Mortgage News, Feb. 25, 2019--Hannah Lang (subscription)
The House Financial Services Committee will hold eight hearings in March to examine issues ranging from oversight of Wells Fargo to the allocation of disaster recovery funds, Chairwoman Maxine Waters, D-Calif., announced Monday.

White House is Making Hard Job of GSE Reform Even Harder

American Banker, Feb. 19, 2019--Victoria Finkle (free article)
It's understandable and even expected that an administration wouldn't be entirely forthcoming while it's developing a policy for overhauling something as large as the mortgage finance market, given the potential impact to so many facets of the economy.But that doesn't explain away the competing narratives of the last few weeks--narratives that actually seem to contradict each other.

Why Kraninger's CFPB is Mandating Fewer Consumer Refunds

American Banker, Feb. 20, 2019--Kate Berry (subscription)
The Consumer Financial Protection Bureau appears to have shifted away from requiring financial institutions to refund customers in response to enforcement actions.

More Americans are Paying Mortgages on Time

Miami Herald, Feb. 25, 2019--Kenneth R. Harney
So here's the good news: The national delinquency rate on home loans hit the lowest level it's been in 18 years as of the final quarter of 2018, according to data compiled by the Mortgage Bankers Association.

Addressing the Outcomes of Nonjudicial Foreclosure

DS News, Feb. 21, 2019--Donna Joseph
On Wednesday, the Legal League 100 held a webinar that explored the potential outcomes of the Dennis Obduskey vs. McCarthy & Holthus Supreme Court case and the impact of these outcomes on both the mortgage industry and the legal professionals supporting it. (MBA mention)

Why Bubble-Era Home Mortgages are a Disaster Waiting to Happen

MarketWatch, Feb. 25, 2019--Keith Jurow
Remember all those sub-prime mortgages that blew up in 2007 and popped the housing bubble? The truth is these mortgages are still dangerous and could soon undermine the housing recovery.

Fed Prepares to End Balance Sheet Runoff Later This Year

Wall Street Journal, Feb. 20, 2019--Nick Timiraos (subscription)
Federal Reserve officials agreed at their meeting last month to announce soon a plan to stop shrinking their $4 trillion portfolio of bonds and other assets later this year, according to minutes of the meeting released Wednesday.

Four Lessons on Federal Crisis Response from 10 Years of Foreclosure Counseling

Urban Institute, Feb. 19, 2019; Corianne Payton Scally, Camille H. Anoli, Patrick Spauster
The NFMC program was designed and implemented by NeighborWorks America, a Congressionally chartered nonprofit organization. Based on our analysis of the NFMC program and its implementation, we identified four lessons that national policymakers can use as guide posts when responding to the next national crisis.

The Eroding Barriers Between Forward and Reverse Mortgage Originators

Reverse Mortgage Daily, Feb. 19, 2019--Martin Olsen
As more reverse mortgage companies continue to expand their operations into the forward space in response to business changes and new realities, a shift appears to be taking place in what was once seen as conventional wisdom: the separation of forward and reverse mortgage business practices, in order for originators to remain specialized in one of the fields so that more dedicated service could be provided one way or the other.

Through Acquisition, M&T Bank Expands Mortgage Servicing Business

Buffalo Business First, Feb. 21, 2019--Alissa Kline
According to a regulatory filing, the Buffalo-based lender agreed to pay $146 million for the right to service a residential mortgage loan portfolio with an outstanding balance of $13.3 billion.

New Loan Allows 85% Cash Out with Less Documentation

Orange County Register, Feb. 21, 2019--Jeff Lazerson
Self-employed borrowers now can qualify more easily for second fixed-rate loans.

About Servicing NewsLink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem jmechem@mba.org

Editor: Mike Sorohan 202/557-2855 msorohan@mba.org 

Editorial Director: Michael Tucker 202/557-2851 mtucker@mba.org 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856 lhall@mba.org

Advertising Opportunities: Bill Farmakis 203/834-8832 bill@jlfarmakis.com

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One Voice. One Vision. One Resource. The Mortgage Bankers Association (MBA) is the national association representing the entire real estate finance industry. For more information visit us at mba.org.