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Volume 9 | Issue 30 | Tuesday, July 30, 2019

The Lede

 

CFPB Proposed Rulemaking Would End Qualified Mortgage ‘Patch'

The Consumer Financial Protection Bureau issued an Advance Notice of Proposed Rulemaking that would end the temporary Qualified Mortgage "Patch" applicable to certain mortgage loans eligible for purchase or guarantee by Fannie Mae and Freddie Mac.

 

News & Trends

 
To the Point with Bob: Bipartisan Effort Helps Protect Affordable Mortgages for Veterans

In the latest edition of To the Point with Bob, MBA President and CEO Robert Broeksmit, CMB, discusses how MBA advocacy resulted in a bipartisan effort on Capitol Hill to assist the nation's veterans.

MBA, Trade Groups Offer FCC Recommendations on 'Robocalls' Policy

The Mortgage Bankers Association and nearly a dozen disparate trade associations offered the Federal Communications Commission a series of recommendations on curbing unlawful "robocalls" while preserving the ability of businesses to legitimately conduct vital business and customer services by phone.

MBA Commends Administration, Congress for Protecting Affordable Mortgages for Veterans Act

The Mortgage Bankers Association applauded President Donald Trump for signing into law the Protecting Affordable Mortgages for Veterans Act of 2019.

Ginnie Mae Solicits Feedback on Stress Testing Framework

Ginnie Mae this week published a Request for Input on the analytical framework it is developing to assess Issuer financial performance under a variety of economic environments.

Homeownership Rate, Homeowner Vacancy Rates See Slight Dip in 2Q

The national homeownership rate fell slightly in the second quarter to 64.1 percent, the Census Bureau reported yesterday.

1Q Foreclosure Auction Prices Hit Record High

Auction.com, Irvine, Calif., said average sales price for properties sold at foreclosure auction in the first quarter rose to $147,115, up 8 percent from the previous quarter and up 7 percent from a year ago to the highest level as far back as data is available.

CoreLogic: Fraud Risk Index Down Sharply in 2Q

CoreLogic, Irvine, Calif., said its National Mortgage Application Fraud Risk Index decreased significantly, from 152 in first quarter to 132 in the second quarter.

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 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. Early registration deadline is Monday, Aug. 12.

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

 
A GSE Plan Before the Election Has Risks--But So Does Doing Nothing

National Mortgage News, July 29, 2019--Hannah Lang (subscription)
A consensus is building among some mortgage industry observers that the election makes it unlikely the administration will try to release Fannie Mae and Freddie Mac from conservatorship anytime soon. Yet others argue, "If not now, when?"

Trump's Ambitious Fannie, Freddie Overhaul Faces Hurdles

Reuters, July 16, 2019--Pete Schroeder
"You're trying to reform what is the financing behind one-sixth of the economy," said Pete Mills, senior vice president at the Mortgage Bankers Association. "You've got to do it in a way that doesn't disrupt the marketplace, and that's the challenge."

6 Questions on the CFPB Plan to End Fannie and Freddie's 'Patch'

American Banker, July 28, 2019--Kate Berry (free article)
"The goal here is to get a version of the patch [so that] QM covers a significant percentage of the borrowers that are currently served, but applies to the market entirely," said Pete Mills, the senior vice president of residential policy at the Mortgage Bankers Association.

Calabria on the QM Patch: Fannie, Freddie Should Be Held to Same Standards as Everyone Else

HousingWire, July 26, 2019--Kelsey Ramirez
Federal Housing Finance Agency Director Mark Calabria told HousingWire this week that he supports the Consumer Financial Protection Bureau's move to kill the Qualified Mortgage patch.

Ginnie Mae Reveals Plans to Stress-Test Non-Bankers

HousingWire, July 29, 2019--Jessica Guerin
The agency's proposed test includes the evaluation of the performance of an issuer's balance sheet, income and cashflow under adverse conditions over the course of eight quarters.

NY AG Sues Ditech Over Bankruptcy Filing

National Mortgage Professional, July 23, 2019--Phil Hall
New York Attorney General Letitia James has filed a brief in the U.S. Bankruptcy Court for the Southern District of New York seeking to prevent the bankruptcy filing by Ditech Holding Corp.

MGIC Earnings Beat Foreshadows Positive Results for Other MIs

National Mortgage News, July 23, 2019--Brad Finkelstein (subscription)
MGIC Investment Corp.'s second-quarter earnings coming in higher than expected can be seen as a positive for the other private mortgage insurers.

House Revives Effort to Allow Nontraditional Data in Credit Scores

American Banker, July 25, 2019--Neil Haggerty (subscription)
House lawmakers are considering legislation to expand the data included in credit reports, despite warnings that certain types of alternative credit data items could hurt consumers.

FHA Temporarily Pulls Plug on Loan Review System Due to 'Errors and Data Loss'

HousingWire, July 25, 2019--Ben Lane
The Federal Housing Administration's system for quality control on the loans it backs is currently offline after weeks of issues led to the inadvertent deletion of an unknown amount of data and documents.

Former CFPB Official 'May Have Abused His Authority:' Inspector General

American Banker, July 29, 2019--Kate Berry (subscription)
Sens. Sherrod Brown, D-Ohio, and Elizabeth Warren, D-Mass., on Monday called for the ouster of Eric Blankenstein, now a senior counsel at the Department of Housing and Urban Development. They were responding to a CFPB inspector general report that he "may have abused his authority" during the fallout last year over revelations he used a racial slur in an incendiary blog 14 years ago.

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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