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Volume 9 | Issue 18 | Tuesday, May 07, 2019

The Lede


CFPB Proposes Changes to HMDA Rules

The Consumer Financial Protection Bureau on May 2 issued a Notice of Proposed Rulemaking, which proposes to raise coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under the Home Mortgage Disclosure Act rules.


News & Trends

Fitch: U.S. RMBS Servicers ‘Scrubbing' Portfolios of Problem Loans

Fitch Ratings, New York, said U.S. residential mortgage-backed securities servicers are continuing to grow their portfolios with much cleaner products, while the volume of problematic loans continues to decline.

Black Knight: Servicing Retention at 13-Year Low

Black Knight, Jacksonville, Fla., reported the share of borrowers who remain with their prior servicer post-refinance reached record lows, creating possible challenges in an ever more competitive marketplace.

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.

Top National News

Adjustable-Rate Mortgages are Making a Comeback. But Are These Loans Right for You?

Washington Post, May 2, 2019--Michele Lerner
Adjustable-rate mortgages, known as ARMs, are back, despite having earned a bad reputation at the height of the housing crisis. Post-crisis borrowers saw them as risky because of their changing interest rates and blamed the glut of foreclosures on the inability of homeowners to handle higher payments when the loans reset.

CMBS Delinquency Rate Continues to Hit Post-Crisis Lows

National Mortgage Professional, May 2, 2019--Phil Hall
The commercial mortgage-backed securities delinquency rate published by Trepp LLC reversed itself after last month's one basis point uptick and resumed is ongoing decline in April by six basis points to a new post-recession low of 2.82 percent.

MERS Owner, Intercontinental Exchange, is Buying Simplifile for $335 Million

HousingWire, May 1, 2019--Jacob Gaffney
ICE is the parent company of the New York Stock Exchange and is also a provider of data and listings services; Simplifile operates one of the largest networks connecting the agents and jurisdictions that underpin residential mortgage records.

Fannie Mae's CECL Remedy May Include More Risk-Sharing

National Mortgage News, May 1, 2019--Bonnie Sinnock (subscription)
Fannie Mae is considering sharing more risk with the private sector to offset the pressure that the implementation of the Current Expected Credit Loss accounting standard could put on its earnings.

New York Launches its Own 'Mini-CFPB'

American Banker, Apr. 30, 2019--Kate Berry (subscription)
New York has created a statewide financial protection division that will focus solely on corporate compliance and consumer issues, following similar efforts by New Jersey and Pennsylvania.

Goldman Sachs Gets Closer to Fulfilling Terms of Mortgage Settlement

National Mortgage News, May 2, 2019--Paul Centopani (subscription)
Goldman forgave $85 million in principal on 819 first-lien mortgages, and $4.2 million on 30 amounts due and previously deferred first-lien mortgages during the period that has passed since its last update on March 1. Its latest contribution puts it more than three-quarters of the way to fulfilling the settlement's terms.

Ginnie Mae Moves to Crack Down on Repeated Refinancings

Wall Street Journal, May 3, 2019--Ben Eisen (subscription)
The government-backed firm, which promotes homeownership by guaranteeing government mortgage bonds, is considering barring some loans backed by the Department of Veterans Affairs from inclusion in its flagship bonds.

CFPB Accuses Two of the Nation's Largest Credit Repair Companies of Tricking and Cheating Customers

HousingWire, May 3, 2019--Ben Lane
The CFPB this week filed a lawsuit against and Lexington Law, which the bureau claims are two of the country's largest credit repair companies, alleging that the companies violated the Telemarketing Sales Rule by requesting and receiving payment of prohibited upfront fees for credit repair services.

Lenders Opening Doors to a Wider Swath of Home Buyers

The Real Deal, May 3, 2019--Kenneth R. Harney
According to the Urban Institute Housing Finance Policy Center's latest quarterly credit availability report, mortgage lenders are reaching out to borrowers who might have been marginal--or rejectees--in the past. Lenders are increasing their appetite for at least slightly riskier applicants--people with lower credit scores, higher debt-to-income ratios, smaller down payments and other issues.

Live Well Financial Halts Funding for New Loans

Reverse Mortgage Daily, May 3, 2019--Elizabeth Ecker
Live Well Financial has halted fundings for new reverse mortgage loans and some loans in process, according to wholesale account executives within the company.

Homeowners Fault Government for Hurricane Harvey Damage

Wall Street Journal, May 6, 2019--Sara Randazzo, Dan Frosch (subscription)
Houston area residents allege the U.S. Army Corps of Engineers knew houses were at risk and now, under eminent domain law, owe them compensation.

PIMCO Mortgage Trust Sets Terms of IPO, to Raise About $1 Billion

MarketWatch, May 6, 2019--Tomi Kilgore
The real estate investment trust plans to use "a significant portion" of the proceeds from the IPO to buy agency residential mortgage backed securities and, over time, excess mortgage servicing rights and residential mortgage loans.

The 55+ Housing Market is Booming

HousingWire, May 6, 2019--Jessica Guerin
The 55+ housing market is thriving right now as more Baby Boomers look to invest in a new nest to live out their retirement dreams.

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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