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Volume 9 | Issue 22 | Tuesday, June 04, 2019

The Lede


MBA, Trade Groups Renew Push for Flood Insurance Program Extension

With the National Flood Insurance Program slated to expire Friday, the House on Thursday approved yet another short-term extension through June 14, giving lawmakers slight breathing room to consider a longer-term solution.


News & Trends

House Committee to Vote Today on FY2020 T-HUD Bill; MBA Urges Support

The House Appropriations Committee is scheduled to meet this morning to consider a Fiscal Year 2020 appropriations bill that would provide FHA with Mortgage Bankers Association-supported staffing and systems upgrades.

Defect Risk Down for 1st Time in 8 Months

First American Financial Corp., Santa Ana, Calif., said frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications decreased by 4.2 percent in April from March, marking the first monthly decline since last July.

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

House Approves Much-Delayed $19.1B Disaster Aid Bill

The Hill, June 3, 2019--Juliegrace Brufke
The House on Monday passed a $19.1 billion disaster relief package, finally sending legislation to the White House that had been repeatedly blocked by conservatives over the Memorial Day recess.

GSEs' Uniform Mortgage-Backed Security Launches

MReport, June 3, 2019--Seth Wellborn
On Monday, Fannie Mae and Freddie Mac marked completion of their Single-Security Initiative with launch of the Uniform Mortgage-Backed Security .

Fannie-Freddie Revamp Poses Risk to Trump: Higher Mortgage Costs

Bloomberg, June 3, 2019--Austin Weinstein
Fannie Mae and Freddie Mac's watchdog has a vision for ending U.S. control of the mortgage giants that hinges on the companies holding more capital. But that dream could run into a cold political reality of making home loans more expensive as President Donald Trump ramps up his re-election bid.

FHFA's Calabria Urges Reg Relief for Homebuilders

American Banker, June 3, 2019--Hannah Lang (subscription)
Federal Housing Finance Agency Director Mark Calabria blamed "burdensome" homebuilding regulations at the local level for helping to drive up housing costs nationwide.

A $4 Trillion Plan Could Make or Break Dreams of U.S. Homebuyers

Bloomberg, May 30, 2019--Christopher Maloney
Washington says a major change in the mortgage-backed securities market could make home loans more affordable nationwide. Not everyone on Wall Street is so sure.

Here are 5 Things the CFPB Will Focus on in 2019

HousingWire, May 28, 2019--Kelsey Ramirez
The Consumer Financial Protection Bureau recently published its spring 2019 rulemaking agenda, showing the regulatory matters it reasonably anticipates having under consideration through 2020.

Reading Between the Lines of CFPB's Regulatory To-Do List

American Banker, May 28, 2019--Kate Berry (subscription)
While the rulemaking agenda suggests some significant moves by the agency in the near future, it leaves out mention of other areas of interest, such as compensation standards for loan originators, a more complete revamp of the CFPB's "Qualified Mortgage" standard and additional industry requests to water down the Dodd-Frank Act.

Urban Institute to FHA: Fix Your Reverse Mortgage Servicing Problems

HousingWire, May 31, 2019--Jessica Guerin
Policymakers have long struggled with how to fix the Federal Housing Administration's reverse mortgage program to prevent it from draining the agency's mortgage insurance fund. But researchers are the Urban Institute have an idea: Fix the program's servicing problems, which they call "one of the biggest drivers of losses in the HECM program."

Private Equity Real Estate Fund Managers Face Growing Pressure on Yields

National Real Estate Investor, May 28, 2019--Beth Mattson-Teig
Private equity real estate funds have enjoyed robust fundraising in recent years, resulting in record high levels of assets under management. Yet fund managers are bracing for more challenges ahead that could cause them to lower target yields.

CFPB Settles with BSI Financial Services over Numerous Mortgage Servicing Issues

HousingWire, May 29, 2019--Ben Lane
The Consumer Financial Protection Bureau announced Wednesday an investigation into the business practices of BSI Financial Services found that the Texas-based mortgage servicer violated multiple federal laws over several years.

US Bank Sues BofA for Mortgage-Related Breach of Contract

Charlotte Business Journal (N.C.), May 29, 2019--Caroline Hudson
The complaint involves First Franklin Financial Corp., which was acquired by Merrill Lynch & Co. Inc. in 2006. BofA then acquired Merrill Lynch in 2008. According to court documents, First Franklin sold defective mortgages to a residential mortgage-backed securities trust in 2007, but failed to inform U.S. Bank, who is acting as trustee.

New York Regulator to Investigate Exposure of Mortgage Documents

New York Times, May 29, 2019--Stacy Cowley
A New York State financial regulator is investigating a security vulnerability at First American Financial Corp., a title insurance company, that exposed an estimated 885 million records related to mortgage deals.

Blackstone Starts Selling Out of Home-Rental Empire

Wall Street Journal, May 29, 2019--Ryan Dezember (subscription)
The private-equity firm late Tuesday sold more than $1 billion of shares of Invitation Homes Inc., the giant single-family home landlord it launched following the financial crisis in a wager that many Americans would be willing to rent the suburban lifestyle they could no longer afford to own.

Could Low Rates Be an Incentive for Upward-Bound Homeowners?

Mortgage Professional America, May 31, 2019--Kimberly Greene
Sustained low interest rates are tempting homeowners to move into bigger homes--with larger mortgages--instead of staying put and refinancing their current property.

The Mall Meltdown Continues

Wall Street Journal, June 3, 2019--Elizabeth Winkler (subscription)
Mall-based retailers reported dismal earnings last week, reminding investors of the sector's fundamental problems.

About Servicing NewsLink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem

Editor: Mike Sorohan 202/557-2855 

Editorial Director: Michael Tucker 202/557-2851 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856

Advertising Opportunities: Bill Farmakis 203/834-8832

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