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Volume 9 | Issue 12 | Tuesday, March 26, 2019

The Lede


MBA Announces $2 Million Investment in MISMO

DALLAS--The Mortgage Bankers Association announced a $2 million investment in MISMO, the mortgage industry standards organization.


News & Trends

ARMCO QC Trends Report Shows Defect Uptick

ACES Risk Management, Pompano Beach, Fla., said its Critical Defect Rate rose in the third quarter of last year to its second-highest level since the TILA/RESPA Integrated Disclosure rule went into effect.

Remodeling Poised for Short-Term Growth

With the spring home buying season showing some signs of promise--but with construction still at depressed levels--several reports suggest many would-be move-up homeowners are turning to remodeling in the short term.

Black Knight: February Delinquencies Up; Prepayments Rise

Black Knight, Jacksonville, Fla., said mortgage delinquencies rose in February, the first increase in that month in 12 years.

FHFA: GSEs Assist 4.3 Million Homeowners Since Conservatorships

The Federal Housing Finance Agency yesterday reported Fannie Mae and Freddie Mac completed 41,062 foreclosure prevention actions in the fourth quarter, bringing the total number of foreclosure prevention actions to 4.283 million since September 2008.

Fannie Mae Issues Guidelines for Non-Citizen Borrowers, Including DACA

Fannie Mae, Washington, D.C., on Mar. 22 posted Fact Sheet clarifying how to determine eligibility for non-citizen borrowers, including immigrants who participate in the Deferred Action for Childhood Arrivals (DACA) program, known as "Dreamers."

MBA News

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.

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 Education Advanced Risk Management for Pros June 3-5 in D.C.

MBA Education presents its popular Advanced Risk Management for Mortgage Pros Workshop, in conjunction with the Robert H. Smith School of Business at the University of Maryland, in Washington, D.C. June 3-5.

MBA Legal Issues & Regulatory Compliance Conference in New Orleans May 5-8

The Mortgage Bankers Association's Legal Issues & Regulatory Compliance Conference takes place May 5-8 at the Hyatt Regency New Orleans.

Top National News

MBA's Thomas Kim: Venture Capital, Startups and Commercial Real Estate: Innovation Potential in a Bespoke Industry

Corporate Real Estate Journal
Thomas Kim, MBA Senior Vice President, recently authored a paper for the UK-based Corporate Real Estate Journal on the role of venture capital, startups and technology-based investments in the commercial real estate industry. 

MBA Tech: Is It Better to Build Your Own Technology or Buy It?

HousingWire, Mar. 25, 2019--Caroline Basile
A panel of multifamily and commercial real estate experts at the Mortgage Bankers Association's 2019 Technology Solutions Conference in Dallas discussed the pros and cons of developing technology versus buying a solution or tool from a vendor.

Jumbo Mortgage Slowdown Sparks Fear of New Housing Crisis

Fox Business, Mar. 21, 2019
Dolly Lenz, founder of Dolly Lenz Real Estate, and Michael Fratantoni, chief economist for the Mortgage Bankers Association, on the report that jumbo mortgages dropped 12 percent in dollar volume in 2018.

Real Estate, Bank Lobbies Get Tax Victory From White House Review

Bloomberg Tax, Mar. 21, 2019
The real estate and banking lobbies asked, the White House's regulatory review office listened-and then the administration helped those industries become eligible for a $414.5 billion perk in the 2017 tax law. Pete Mills, the Mortgage Bankers Association's senior vice president of residential policy, said in an emailed statement that the group was "pleased that the final rule reflected changes in the definition of ‘dealing in securities' that were consistent with the recommendations in our formal comments."

U.S. Commercial, Multifamily Mortgage Debt Climbs to $3.39 Trillion in 2018

World Property Journal, Mar. 19, 2019--Michael Gerrity
According to the Mortgage Bankers Association's latest Commercial and Multifamily Mortgage Debt Outstanding quarterly report for 2018, the level of commercial and multifamily mortgage debt outstanding in the U.S. at the end of 2018 was $216 billion (6.8 percent) higher than at the end of 2017.

New Privacy Rules, Digital Mortgages Broaden Cybersecurity Needs

National Mortgage News, Mar. 25, 2019--Paul Centopani (subscription)
Consumers' desire for a digitized mortgage process and increased data-privacy regulation force lenders into a race to keep up with evolving cybersecurity risks extending beyond their own operations.

5 Questions for Freddie Mac's Next CEO

National Mortgage News, Mar. 21, 2019--Hannah Lang (subscription)
Freddie Mac made it official on Thursday that David Brickman, a 20-year veteran with the mortgage giant, will become CEO effective July 1.

Jumbo Mortgages Are Slowing Down, Testing Banks' Postcrisis Playbook

Wall Street Journal, Mar. 21, 2019--Ben Eisen, Laura Kusisto (subscription)
High-end home buyers are turning cautious, a blow to banks that refocused their mortgage businesses around wealthy borrowers in the years after the financial crisis.

Citibank to Pay $25 Million for Violating the Fair Housing Act

HousingWire, Mar. 19, 2019--Ben Lane
According to the OCC, an investigation showed that Citibank did not equally offer certain mortgage discounts to all Citi customers, thereby "adversely" affecting some customers based on their "race, color, national origin, or sex."

Home Equity Expands, Home Equity Credit Not So Much

National Mortgage News, Mar. 19, 2019--Elina Tarkazikis (subscription)
Home equity is sitting above the $15 trillion mark nationwide, according to the Federal Reserve, but interest in more costly forms of debt, such as credit cards or personal loans, has been outpacing that of home equity loans and lines of credit since the financial crisis.

Supreme Court Makes it Harder for Borrowers to Fight Foreclosures in Non-Judicial States

HousingWire, Mar. 20, 2019--Jacob Gaffney
Law firms, mortgage lenders and servicers were just awarded more protection in serving non-judicial foreclosures, according to a recent Supreme Court ruling.

World's Biggest Banks Accused of Price-Fixing Fannie Mae, Freddie Mac Bonds

HousingWire, Mar. 22, 2019--Ben Lane
The lawsuit was filed this week by the state of Pennsylvania, which claims that Bank of America; Barclays Capital; BNP Paribas; Citigroup; Credit Suisse; Deutsche Bank; Deutsche Bank Securities; First Tennessee Bank; FTN Financial Securities; Goldman Sachs; JPMorgan Chase; J.P. Morgan Securities; Merrill Lynch; and UBS Securities conspired to both overcharge and underpay investors on debt bonds issued by Fannie and Freddie between 2009 and 2014.

Mortgage Sector Performance May Lag as Fed Pivots to Treasuries

Bloomberg, Mar. 22, 2019--Christopher Maloney
Mortgage securities may perform worse than government bonds in the coming months after the Federal Reserve said it plans to move more of its debt holdings into U.S. Treasuries.

The U.S. Mortgage Market Needs Better Plumbing

Bloomberg, Mar. 25, 2019--Editorial Board
Mortgage servicing was a disaster in the last crisis. It still needs fixing.

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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