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Volume 9 | Issue 24 | Tuesday, June 18, 2019

The Lede


MBA Launches Affordable Housing Initiative

The Mortgage Bankers Association launched a strategic initiative to help develop stronger and more effective affordable housing partnerships in both the policy and business arenas.


News & Trends

MBA, Trade Groups Urge CFPB to Raise HMDA Reporting Threshold

The Mortgage Bankers Association and a half-dozen other industry trade groups urged the Consumer Financial Protection Bureau to increase the threshold for reporting Home Mortgage Disclosure Act data on closed-end mortgage loans.

Quicken, HUD Settle Lawsuit

A federal mediator on Friday said HUD and Quicken Loans Inc., Detroit, settled an acrimonious lawsuit accusing Quicken of violating the False Claims Act.

CoreLogic: Foreclosure Inventories at 20-Year Low

CoreLogic, Irvine, Calif., said 4% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in March, an 0.3 percentage point decline from a year ago to the lowest March rate in 13 years.

ATTOM: Completed Foreclosures Down 50% from Year Ago

ATTOM Data Solutions, Irvine, Calif., reported 56,152 foreclosure filings in May, up by 1 percent from April but down by 22 percent from a year ago. Additionally, it said completed foreclosures fell by 50 percent from a year ago.

FHFA: GSEs Sell $22.2B in Non-Performing Loans in 2018

The Federal Housing Finance Agency released its report 2018 Enterprise Non-Performing Loan Sales Report, showing Fannie Mae and Freddie Mac sold 117,466 NPLs with a total unpaid principal balance of $22.2 billion through Dec. 31.

30% Of Americans Still Living Week-to-Week; 47 Million 'Worse Off' Now Than Before Recession

Despite a broad economic expansion following the Great Recession, lack of savings paints a disconcerting picture about financial preparedness in America, said Northwestern Mutual, Milwaukee, with nearly a third of U.S. adults within three paychecks of needing to either borrow money or skip paying one or more bills.

Institutional Investors Lower Their Expectations

Institutional investors lowered their expectation for commercial real estate returns, the Pension Real Estate Association's Consensus Forecast Survey reported yesterday.

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

Growth of Multifamily, CRE Loan Debt Shows Strong Interest in Sector

National Mortgage News, June 12, 2019--Paul Centopani (subscription)
Commercial and multifamily mortgage debt outstanding grew 1.3% in in the first quarter of 2019, aided by low mortgage rates and the steady incline of property values, according to the Mortgage Bankers Association.

Fannie-Freddie Regulator Asks Congress to Help End U.S. Control

Bloomberg, June 12, 2019--Austin Weinstein
Fannie Mae and Freddie Mac's chief regulator, Federal Housing Finance Agency Director Mark Calabria, is calling on Congress to pass housing-finance reform legislation that sets a path to return the companies to private hands.

Quicken Loans Vice Chairman Bill Emerson: Government Used 'Extortionist Tactics' to Pursue 'Bogus' Claims

HousingWire, June 14, 2019--Jessica Guerin
Quicken Loans Vice Chairman Bill Emerson (and former MBA chairman) said the nonbank did not admit to any guilt and that the government realized its "bogus" claims were baseless.

Three Ways to Draw Private Capital Back into Mortgages

National Mortgage News, June 14, 2019--Edward DeMarco (subscription)
Former Federal Housing Finance Agency Director says while bigger picture reform is debated, regulators should take steps today to rebalance public and private risk in the mortgage sector.

How an Obama Fed Appointee is Scuttling Wall Street's Bid to Ease Rules

Reuters, June 14, 2019--Pete Schroeder
As a U.S. Federal Reserve governor, Lael Brainard gets only one vote on proposals that come before the central bank's board. Over the past year, she has used it to combat the Trump administration's efforts to ease rules for Wall Street.

CFPB to Kick Off Symposium Series with Forum on 'Abusive' Standard

American Banker, June 11, 2019--Hannah Lang (subscription)
The Consumer Financial Protection Bureau will hold its first symposium June 25 in a series designed to provide dialogue on consumer protections, featuring two panel discussions on the definition of "abusive" under the Dodd-Frank Act.

N.Y. Attorney General Urges CFPB to Dismiss Proposed HMDA Rule

National Mortgage Professional, June 17, 2019--Phil Hall
New York State Attorney General Letitia James urged the Consumer Financial Protection Bureau not to adopt its recently-proposed rule that would undermine the ability to enforce fair lending laws and prevent discrimination in the mortgage lending market.

Prepays Rise on the Combination of Lower Rates, Seasonality: KBW

National Mortgage News, June 11, 2019--Brad Finkelstein (subscription)
Prepayment speeds for loans included in agency mortgage-backed securities were up approximately 20% both monthly and annually during May as the decline in interest rates boosted activity, a report from Keefe, Bruyette & Woods said.

KKR Doubles Down on House Flippers

Wall Street Journal, June 12, 2019--Ryan Dezember (subscription)
The investment house known for corporate takeovers has agreed to pump another $250 million into Toorak Capital Partners LLC, which buys short-term loans made to real-estate investors who purchase, renovate and resell residential properties.

House Poised to Advance Flood Insurance Reform, Beneficial Owner Rules

American Banker, June 12, 2019--Neil Haggerty (subscription)
The House Financial Services Committee was poised Wednesday to approve a bill reforming the National Flood Insurance Program, with key members of both parties voicing their support.

House Committee Passes Bill to Make FHA Loans Less Expensive

HousingWire, June 13, 2019--Jessica Guerin
The bill - H.R. 3141, "The FHA Loan Affordability Act of 2019" - would repeal FHA's policy that requires borrowers to pay mortgage insurance for the life of the loan. Instead, payments would cease when the outstanding loan balance reaches 78% of the home's original value.

Fed Publishes Report on what Bankers Want from CRA Reform

American Banker, June 13, 2019--Kate Berry (subscription)
The Fed's 24-page summary delves into the major concerns about reforming the Community Reinvestment Act, including updating assessment boundaries, evaluating how banks are tested, and clarifying which activities are eligible for CRA credit.

Dark Side of Reverse Mortgage Industry: Predatory Lending Hits Seniors

USA Today, June 13, 2019 (Editorial)
The editorial asserts while the concept of allowing seniors to unlock the wealth they have in their homes is sound, the reality is that reverse mortgages add complexity and risk at a time in people's lives when they should be reducing both. "When so many such loans are going into default, it's a clear sign that something is amiss."

Despite Rising Home Prices, Experts Pop Bubble Fears, Jun 17, 2019--Natalie Campisi
Despite housing starts of new homes rising in April, there continues to be a shortage of single-family units, says Joel Kan, associate vice president for industry surveys and forecasts with the Mortgage Bankers Association.

New Piggy-Back Loans Can Lower Your Payments When Buying a Home

Orange County Register, June 14, 2019--Jeff Lazerson
Innovative mortgage industry thinkers are creating mind-boggling second lien purchase money and cash-out financing instruments that will save mortgage shoppers armored cars of cash. (MBA mention)

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