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Volume 9 | Issue 19 | Tuesday, May 14, 2019

The Lede


FHA Proposes New Lender Certification Requirements

The Federal Housing Administration last Thursday proposed to overhaul its lender certification requirements, aimed at providing lenders and servicers greater certainty in how to satisfy the agency's compliance requirements.


News & Trends

CFPB Proposes New Fair Debt Collection Rules

The Consumer Financial Protection Bureau yesterday issued a Notice of Proposed Rulemaking to implement the Fair Debt Collection Practices Act.

Mortgage Action Alliance 'Call to Action' Urges Support for Self-Employed Mortgage Access Bill

The Mortgage Bankers Association's grassroots advocacy arm, the Mortgage Action Alliance, issued a Call to Action yesterday urging support of legislation that would improve mortgage access for the self-employed, gig workers and other non-traditional borrowers.

Seriously Underwater Properties Rise from Year Ago

ATTOM Data Solutions, Irvine, Calif., said more than 5.2 million U.S. properties remained seriously underwater at the end of the first quarter, up by more than 17,000 properties from a year ago.

CMBS Delinquency Rates Fall to Post-Crisis Low

The commercial mortgage-backed securities delinquency rate fell six basis points to 2.82 percent in April, the lowest delinquency reading since the 2008 financial crisis.

CFPB Outlines Plan to Review Regulatory Flexibility Act Rules

The Consumer Financial Protection Bureau yesterday published a notice on how it plans to periodically review regulations under the Regulatory Flexibility Act and to request public input.

MBA News

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 Document Custody Workshop June 20

The Mortgage Bankers Association's popular Document Custody Workshop takes place Thursday, June 20 at the Ritz-Carlton Tysons Corner in McLean, Va.

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.

Top National News

Fannie Mae Backs 'Dreamers'

Mortgage Compliance, May 2019--James Brody
In March, Fannie Mae issued a policy stating it will continue to purchase and securitize mortgages for non-U.S. citizen borrowers who are lawful permanent residents under the Deferred Action for Childhood Arrivals program; Pete Mills of the Mortgage Bankers Association says FHA should follow the same policy.

Freddie Mac Opens Up Certificate Exchange for Uniform MBS to Investors

National Mortgage News, May 8, 2019--Bonnie Sinnock (subscription)
Investors can now exchange certain existing Freddie Mac bonds for to-be-announced uniform mortgage-backed securities in preparation for the full launch of UMBS next month.

Republicans Move to Abolish CFPB

HousingWire, May 7, 2019--Ben Lane
If a handful of Republicans in the Senate have their way, the Consumer Financial Protection Bureau will not exist for much longer, as for at least the third time in the last few years, Republicans are trying to kill the CFPB.

Analyzing The Impacts Of Administrative GSE Reform

Mortgage Media, May 13, 2019--David Stevens, CMB
Former MBA President and CEO says the Administration's renewed interest in resolving conservatorship of Fannie Mae and Freddie Mac could result in "downside risks" to the real estate finance industry.

Ginnie Mae's MBS Issuer Shift Creates 'Greater Risk of Loss:' GAO

National Mortgage News, May 10, 2019--Paul Centopani (subscription)
The Government Accountability Office called on Ginnie Mae to undertake four reforms to its operations, citing concerns regarding the ongoing shift in size and capitalization of mortgage-backed securities issuers.

Wells Fargo Creates Unit to Satisfy Regulatory Demands

American Banker, May 8, 2019--Kate Berry (subscription)
Wells Fargo has created an operations unit designed to focus exclusively on meeting demands of regulators who have expressed dissatisfaction with the bank's progress after a series of scandals.

Equifax Sets Aside Nearly $700 Million for Expected Data Breach Payouts

HousingWire, May 10, 2019--Ben Lane
As part of its first quarter earnings release, Equifax CEO Mark Begor disclosed that the company set aside $690 million during the first quarter that includes the losses it expects to take in connection with a "potential global resolution of the consumer class action cases and the investigations by certain federal and state regulators."

Ocwen's 1Q Loss Due to Lower Interest Rates Affecting its MSRs

National Mortgage News, May 7, 2019--Brad Finkelstein (subscription)
Lower interest rates caused mortgage serving rights runoff plus a charge to the fair value of that portfolio and led to Ocwen Financial posting a first-quarter loss.

Fifth Avenue Losing Luster as Vacancies Climb, Rents Fall

Wall Street Journal, May 7, 2019--Esther Fung (subscription)
Global retailers once seemed to pay whatever it took to lease space on Manhattan's Fifth Avenue. That doesn't appear to be the case anymore.

Mortgage Duration Drop Means Refinancing Concerns Are Back Again

Bloomberg, May 8, 2019--Christopher Maloney
Mortgage investors' concern about prepayment speeds may increase as a renewed U.S. rate rally helps push the U.S. MBS index duration down to its lowest level since March.

Can FHA's Promise of Softer Enforcement Get Lenders Back on Board?

National Mortgage News, May 9, 2019--Hannah Lang (subscription)
The financial services industry welcomed a proposed overhaul of how the Federal Housing Administration identifies False Claims Act violations, but some observers say it remains to be seen if the changes will lure mortgage lenders back to the FHA.

New Congressional Push on Credit Bureau Data Breaches

National Mortgage Professional, May 9, 2019--Phil Hall
A new effort is underway on Capitol Hill to reintroduce the Data Breach Prevention and Compensation Act, which is designed to create a new level of accountability for large credit reporting agencies that were hit with data breaches involving consumer data.

Ocwen and FIS Agree to Settle Lawsuit Over Alleged Audit Abuses

National Mortgage News, May 9, 2019--Bonnie Sinnock (subscription)
Ocwen Financial and Fidelity Information Services entered into a settlement agreement over allegations involving a regulatory compliance audit the West Palm Beach, Fla.-based servicer was required to pay for.

As Hurricane, Fire Seasons Approach, More People Likely to Be in Harm's Way

Wall Street Journal, May 9, 2019--Erin Ailworth (subscription)
As emergency managers prepare for hurricane and wildfire seasons, they say growing development and higher population in vulnerable areas will likely amplify the damage and devastation.

Drop in Mortgage Rates Hurts Impac, but May Pay Off Later

National Mortgage News, May 10, 2019--Bonnie Sinnock (subscription)
Lower rates hurt the value of Impac Mortgage Holdings' servicing rights and overall earnings in the first quarter, but they could help improve the company's second-quarter results.

Fannie and Freddie Back More Mortgages of Those Deeply in Debt

Wall Street Journal, May 13, 2019--Ben Eisen (subscription)
The gatekeepers of the American mortgage market are increasingly backing loans to borrowers who have heavy debt loads, highlighting questions about mortgage risk as policy makers debate ways to change the system.

As CFPB Mulls Privatizing Database, Consumer Complaints Mount

American Banker, May 12, 2019--Kate Berry (subscription)
In the wake of the massive data breach at Equifax, it was not surprising that financial consumer complaints sent to the Consumer Financial Protection Bureau shot up by nearly a quarter in 2017. But last year, complaints kept climbing.

Appeals Court Revives Class Action Suit Against Nationstar for Redundant Flood Insurance

HousingWire, May 13, 2019--Jessica Guerin
In a unanimous decision, judges in the 11th Circuit Court of Appeals revived part of a Florida condo owner's claims against Nationstar, accusing the servicer of ripping off borrowers by unnecessarily placing flood insurance on their properties for which they were charged thousands of dollars.

Live Well Financial's Abrupt Closing Leads to Host of Problems

HousingWire, May 13, 2019--Jessica Guerin
On Monday, Flagstar Bancorp revealed in a Securities and Exchange Commission filing that Live Well owes the bank $74 million, which includes $5 million in a warehouse line of credit.

About Servicing NewsLink

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Publisher: Marcia Davies, Chief Operating Officer

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