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Volume 9 | Issue 26 | Tuesday, July 02, 2019

The Lede

 

MBA Urges Long-Term Extension of TRIA

Although the Terrorism Risk Insurance Act--which provides a valuable federal backstop to insurance claims involving terrorism acts--is not set to expire until December 2020, the Senate Banking Committee is bringing up its reauthorization well ahead of time, an action the Mortgage Bankers Association welcomes.

 

News & Trends

 
Administration Establishes Council on Affordable Housing

President Trump yesterday signed an Executive Order establishing the White House Council on Eliminating Barriers to Affordable Housing, and named HUD Secretary Ben Carson as its chair.

Searching for a Solution to Rental Affordability Challenges

The Harvard University Joint Center for Housing Studies' State of the Nation's Housing report said overall rents rose at a 3.6 percent annual rate in early 2019, twice the pace of overall inflation.

CFPB Extends Comment Period for HMDA Proposed Rulemakings

The Consumer Financial Protection Bureau yesterday extended the comment period on its Advance Notice of Proposed Rulemaking relating to the Home Mortgage Disclosure Act.

Black Knight: May ARM Prepayments Highest Since 2007

Black Knight, Jacksonville, Fla., said lower interest rates and the spring home buying seasons have led to overall prepayment activity more than doubling over the past four months to the highest level seen since late 2016.

Rapidly Growing Metros Losing Affordable Housing at Rapid Rate

The fastest-growing cities in the United States saw substantial declines in affordable housing units between 2010 and 2017, said Freddie Mac, McLean, Va.

Defect Risk Declines for 2nd Straight Month

First American Financial Corp., Santa Ana, Calif., said its May Loan Application Defect Index fell by 5.5 percent from April, the second consecutive monthly decline.

Fitch: Caution Despite Strong Alt-Doc Mortgage Performance

Fitch Ratings, New York, issued a report saying although alternative document residential mortgage loan products introduced in the US after the financial crisis have performed better than expectations, it maintain a cautious approach to these loans because of their limited history.

MBA News

 
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 Condominium Lending Workshop in D.C. July 18

The Mortgage Bankers Association's annual Condominium Workshop takes place Thursday, July 18 at the Marriott Marquis in Washington, D.C.

Top National News

 
Push to Overhaul Fannie, Freddie Nudges Up Mortgage Costs

Wall Street Journal, June 25, 2019--Andrew Ackerman, Ben Eisen (subscription)
Investor anxiety about a Trump administration push to overhaul housing finance is showing up in prices in the market for mortgage-backed securities.

How Much Mortgage Debt Does Your State Have? Two States Are Far and Away Above The Rest

USA Today, June 27, 2019--Grant Suneson
Just as home prices vary from state to state, so does the average mortgage debt.

Mortgage industry Calls for Servicing Regulation Uniformity in New York

National Mortgage News, July 1, 2019--Elina Tarkazikis (subscription)
In a joint letter to New York Department of Financial Services Superintendent Linda Lacewell, the Mortgage Bankers Association and New York Mortgage Bankers Association highlighted discrepancies in DFS' suggested changes to 3 NYCRR 419, which covers business conduct rules for servicing mortgage loans.

Bill Eliminating VA Loan Cap Signed Into Law

HousingWire, June 26, 2019--Jessica Guerin
The Blue Water Navy Vietnam Veterans Act allows homebuyers to borrow above the 2019 limit of $484,350 for most counties without any down payment.

Cerberus Sold the First Post-Crisis Mortgage Bond Backed by Home Equity Lines

Bloomberg, June 26, 2019--Adam Tempkin
Cerberus Capital Management has sold a kind of mortgage bond that hasn't been seen since the financial crisis. Not many financial companies are seen following in its footsteps.

FASB to Consider Delaying CECL Deadlines for Smaller Firms

American Banker, June 27, 2019--John Heltman, John Reosti (subscription)
The Financial Accounting Standards Board is considering whether to consolidate or delay the deadlines for smaller firms to comply with a contentious new credit loss accounting standard, according to the association's chairman.

Home Flipping's Shadowy Ties to Mortgage Fraud

Forbes, June 27, 2019--Francisco Alvarado
According to real estate research firm Attom Data Solutions, 7.2 % of all U.S. home sales during Q1 2019 were flipped homes, the highest rate in nearly a decade. But it's a cottage industry ripe for mortgage fraud that only gets exposed when an investment goes south, legal experts say.

OCC: Borrowers Keep Getting Better at Paying Off Their Mortgages

HousingWire, June 27, 2019--Jessica Guerin
The latest report from the Office of the Comptroller of the Currency showed an improvement in the performance of first-lien mortgages in the federal banking system during the first quarter.

White House Considers Capital Gains Tax Break That Would Benefit Wealthy

Bloomberg, June 27, 2019--Saleha Mohsin
The White House is developing a plan to cut taxes by indexing capital gains to inflation, sources said, in a move that would largely benefit the wealthy and may be done in a way that bypasses Congress.

White House Predicts Deregulation Will Boost Household Incomes

Wall Street Journal, June 28--Josh Mitchell (subscription)
The report issued Friday by the Council of Economic Advisers looked in isolation at 20 rules in the Trump administration's broader economic agenda, which has also included new tariffs that economists and industries say have driven up some consumer prices.

FASB Chair Defencs CECL: 'The Benefits Justify the Cost'

American Banker, June 30, 2019--John Heltman (subscription)
Russ Golden, chairman of the Financial Accounting Standards Board, is defending the board's decision to require all publicly traded firms to proactively report and set aside reserves for credit losses, saying the move would make the financial system safer and is worth the cost.

Your Phone Could Help Make Mortgage Bond Traders Miserable

Bloomberg, July 1, 2019--Chrisopher Maloney
A massive wave of homeowners now has an incentive to refinance their mortgages and they could find the process faster than it's been in recent memory thanks to technology improvements.

Customers in Pa. Warns of Earnings Hit After Mortgage Client Shuts Down

American Banker, July 1, 2019--Ken McCarthy (subscription)
The $10.1 billion-asset Customers disclosed in a regulatory filing Monday that it could record a $7 million to $8 million charge after an unnamed commercial mortgage warehouse client shut down in May.

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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