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Volume 9 | Issue 21 | Tuesday, May 28, 2019

The Lede


Government Agencies Strive to Be More Lender-Friendly

NEW YORK--Representatives from government housing agencies said they are making progress in breaking down barriers that discourage mortgage lenders and servicers from working with them.


News & Trends

For Secondary Market, Economy a Big 'What-If'

NEW YORK--Rising inequalities, sluggish growth, political tensions and central bank policy "experimentations" are having their effects on the housing market. Economists here at the Mortgage Bankers Association's National Secondary Market Conference & Expo said these uncertainties are likely to continue in the next months.

Mortgage Action Alliance Call to Action Urgest Senate Support of Bill Limiting G-Fee Use

The Mortgage Action Alliance--the grassroots advocacy arm of the Mortgage Bankers Association--issued a Call to Action yesterday, urging its members to contact their senators in support of recently introduced legislation prohibiting Congress from using government-sponsored enterprise guaranty fees for unrelated spending.

MBA Raises Concerns over CECL Accounting Standard

The Mortgage Bankers Association, in a May 21 letter to the House Financial Services Committee, said new Current Expected Credit Loss accounting requirements to measure credit losses could adversely residential and commercial/multifamily lenders, particularly community lenders.

Black Knight: Strong April Mortgage Performance Pushes National Delinquency Rate to Record Low

Black Knight, Jacksonville, Fla., said following a slow start to the year, the national delinquency rate fell by more than 5% month-over-month to 3.47%, its lowest level dating back to 2000.

Digitally Transforming Commercial Servicing Operations

LOS ANGELES--Integrating business operations, customer and employee experience and technology can digitally transform the commercial/multifamily mortgage servicing business, PwC Partner Steve Robertson said here at the MBA Commercial/Multifamily Servicing & Technology Conference.

'Adverse Selection' Drives Higher Losses for Legacy CMBS

Adverse selection in the commercial mortgage-backed securities 1.0 universe of pre-2009 loans drove loss severities higher last year, reported Fitch Ratings, New York.

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 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

Mortgage Refinance Booms are a Thing of the Past: MBA Chief Economist

National Mortgage News, May 21, 2019--Brad Finkelstein
The era of plentiful refinance volume is over for the foreseeable future, the result of mortgage rates remaining in a very narrow band for the past decade, said Mortgage Bankers Association Chief Economist Mike Fratantoni.
(free content)

REITs Bet Big on the Mortgage Market

Wall Street Journal, May 28, 2019--Ben Eisen (subscription)
A once-sleepy corner of American housing finance is increasingly buying up mortgages, and it stands to grow further as the government's role in the market shrinks. (MBA Chief Economist Mike Fratantoni mention)

CFPB's Kraninger Digs in Over Halt to Military Lending Exams

National Mortgage News, May 27, 2019--Kate Berry (subscription)
Kathy Kraninger, the director of the Consumer Financial Protection Bureau, is in a standoff with Senate Democrats over the bureau's refusal to examine financial firms for compliance with the Military Lending Act.

House Passes Waters' Bill to Reverse Mulvaney's CFPB Changes

National Mortgage Professional, May 23, 2019--Phil Hall
The House voted along party lines 231 to 191 to approve the Consumers First Act, a bill authored by Rep. Maxine Waters, D-Calif., Chair of the House Financial Services Committee, designed to reverse structural changes made to the Consumer Financial Protection Bureau while Mick Mulvaney was the agency's Acting Director.

Senate Finalizes Deal on Disaster Aid Package

Politico, May 23, 2019--Marianne Levine, Burgess Everett
The multi-billion dollar disaster aid bill, which will assist states devastated by wildfires, hurricanes and flooding, comes after months of roadblocks.

How Acting Ginnie Mae Chief is Trying to Get to the Bottom of VA Refis

National Mortgage News, May 21, 2019--Bonnie Sinnock (subscription)
Soon after acting Ginnie Mae Acting President Maren Kasper took the helm of the agency in January, she and other officials decided to step up efforts to address the issue of faster prepayments for loans backed by the Department of Veterans Affairs.

GSEs in Favor of Retaining CRT Strategies, G-Fee Parity Post Reform

National Mortgage News, May 22, 2019--Bonnie Sinnock (subscription)
Government-sponsored enterprise executives appearing at the MBA National Secondary Mortgage Conference say they want to continue to offer credit risk transfers and guarantee-fee parity after the GSEs are released from conservatorship, but they might not be able to.

Should Fannie, Freddie Be Labeled 'Systemically Important?'

American Banker, May 23, 2019--Victoria Finkle (subscription)
One of the bigger questions is whether the GSEs should be considered systemically important. Although this is a topic that has largely flown under the radar up to now, it may take on new significance under a Trump-guided Federal Housing Finance Agency.

Government Watchdog Considering Ways to Reduce Federal Costs of Reverse Mortgage Program

HousingWire, May 23, 2019--Jessica Guerin
The Congressional Budget Office released a report Thursday exploring four proposed solutions for lessening the cost and risk of the reverse mortgage program to the federal government. Reverse mortgages are insured by the Federal Housing Administration.

Four Indicted in GSE Multifamily Mortgage Fraud Scheme

National Mortgage News, May 23, 2019--Bonnie Sinnock (subscription)
The 114-count superseding indictment alleges three people associated with real estate investor Morgan Management--CEO Robert Morgan, Project Manager Todd Morgan and Director of Finance Michael Tremiti--along with loan brokerage Aurora Capital Advisors' owner Frank Giacobbe all engaged in a conspiracy to commit wire fraud and bank fraud against Fannie Mae and Freddie Mac.

Freedom Mortgage to Acquire RoundPoint Mortgage Servicing

HousingWire, May 24, 2019--Jessica Guerin
Freedom Mortgage and RoundPoint Mortgage Servicing are planning to merge, the companies announced Friday. The deal will make RoundPoint--which services and subservices about $91 million in mostly agency loans--a wholly owned subsidiary of Freedom, a full-service, nonbank mortgage lender and servicer.

About Servicing NewsLink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem

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Editorial Director: Michael Tucker 202/557-2851 

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