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Volume 9 | Issue 39 | Tuesday, October 01, 2019

The Lede

 

MBA, Trade Groups Offer Support for ‘YIMBY' Bill

You've heard, of NIMBY, of course--Not In My Back Yard. Turns out, there's also YIMBY--Yes, In My Back Yard. And in this case, YIMBY is something the Mortgage Bankers Association and other industry trade groups like.

 

Top National News

 
Commercial Delinquencies Should Remain Low Despite Economic Worry: MBA

National Mortgage News, Sept. 24, 2019--Brad Finkelstein (subscription)
Commercial and multifamily mortgage delinquency rates should stay at historically low levels in the near future even as economic uncertainty over trade affects U.S. businesses, according to the Mortgage Bankers Association.

5 Changes Lenders Want from CFPB's Rewrite of QM Rule

American Banker, Sept. 24, 2019--Hannah Lang (subscription)
The effects of that rule, which requires lenders to verify borrowers' ability to repay and provides legal protection for "qualified mortgages" with low debt-to-income ratios, so far has been limited, because of the GSE "patch." (MBA mention)

Banks Counting on GSE Reform to Stop Mortgage Share Erosion

National Mortgage News, Sept. 24, 2019--Andy Peters (subscription)
Banks have been ceding market share in home lending to nonbank lenders for years, but that could change under a Treasury Department proposal to remove Fannie Mae and Freddie Mac from conservatorship.

Average Mortgage Payments Slide for First Time in Years

The Mortgage Reports, Sept. 24, 2019--Aly J. Yale
Home prices might be up, but American mortgage payments are actually falling. In fact, according to new data, the average monthly mortgage payment has dipped over 6 percent in just the last year.

Mortgage Fraud Risk Plummets Amid A Drop In Interest Rates

Forbes, Sept. 25, 2019--Brenda Richardson
After steadily increasing since late 2016, mortgage fraud risk plummeted by the end of the second quarter of 2019 thanks to lower interest rates that ushered in an influx of low-risk refinance transactions, according to a new report by data and analytics provider CoreLogic. The market also benefited from homes being bought by iBuyers.

New York Fed Boosts Size of Repurchase Operations

Wall Street Journal, Sept. 25, 2015--Daniel Kruger (subscription)
The Federal Reserve Bank of New York said Wednesday it would increase the size of scheduled operations to provide short-term cash loans to financial firms.

Fitch: End of QM Patch Could Drive RMBS Losses

HousingWire, Sept. 25, 2019--Kelsey Ramirez
High loan-to-value loans could drive losses in residential mortgage backed securities as the Qualified Mortgage Patch expires, according to a new report from Fitch Ratings.

House Lawmakers Spar over CFPB Debt Collection Rule

American Banker, Sept. 26, 2019--Neil Haggerty (subscription)
A House hearing on the future of regulating debt collectors showcased a sharp divide between Democrats and Republicans over a pending proposal by the Consumer Financial Protection Bureau.

Court Approves Ditech's Sell-Off of Forward and Reverse Mortgage Businesses

HousingWire, Sept. 26, 2019--Ben Lane
Ditech Holding is one giant step closer to selling off its forward and reverse mortgage businesses after a federal bankruptcy court judge approved the company's plan to sell to New Residential Investment and Mortgage Assets Management.

GAO Calls for More Scrutiny of Reverse Mortgage Servicing

National Mortgage News, Sept. 26, 2019--Bonnie Sinnock (subscription)
The Federal Housing Administration should more closely monitor reverse mortgage servicers and track related data that would shed light on a rise in defaults, according to a Government Accountability Office report.

Fannie, Freddie Will Retain $45B in Capital in First Step Toward Privatization

National Mortgage News, Sept. 30, 2019-Hannah Lang (subscription)
Mortgage giants Fannie Mae and Freddie Mac will be permitted to retain a combined $45 billion worth of earnings, the Federal Housing Finance Agency announced Monday, after holding only small capital cushions of $3 billion each for seven years.

Mortgage Market Not Open to Risky Borrowers (Despite What Some Say)

HousingWire, Oct. 1, 2019--Kelsey Ramirez
Mortgage lenders are increasingly entering the non-qualified mortgage market, but does this mean we are going back to the old subprime days? The short answer: no. (MBA mention)

NFIP Extended Into November

National Mortgage Professional, Sept. 30, 2019--Phil Hall
President Trump has signed a continuing resolution that extends the National Flood Insurance Program until Nov 21.

MBA Backs House Bill to Support Home Shortage and Affordability Hurdles

National Mortgage News, Sept. 30, 2019--Paul Centopani (subscription)
As the affordable housing crisis comes to a head, the Mortgage Bankers Association put up opposition to the "not in my backyard" mindset by getting behind the Yes, In My Backyard bill introduced by the House.

News & Trends

 
CoreLogic: 2Q Negative Equity Share Falls to 3.8%

CoreLogic, Irvine, Calif., said U.S. homeowners with mortgages saw their equity increase by 4.8% year over year, representing a gain of nearly $428 billion from a year ago.

Ellie Mae: Refinances Soar as 30-Year Note Rate Declines

Ellie Mae, Pleasanton, Calif., said drops in 30-year interest rates for the eighth consecutive month drove up the percentage of refinances in August.

BofA Survey: Americans Prefer Mortgage over Rent

Most Americans prefer a mortgage payment to paying rent monthly, said Bank of America, Charlotte, N.C., in its yearly Homebuyer Insights Report.

Redfin: People Who Bought Homes in 2012 Have Earned $203 Billion in Equity

Redfin, Seattle, said people who bought a home at the bottom of the market in 2012 have earned a median $141,000, or 261%, in home equity since then.

Fitch: High Loan-to-Values to Drive US RMBS Losses With 'QM Patch' End

Fitch Ratings, New York, said high debt-to-income loans no longer eligible for purchase by Fannie Mae and Freddie Mac are likely to have higher loss levels if the loans also have high loan-to-values.

First American: August Loan Defects Down by 4%

First American Financial Corp., Santa Ana, Calif., said its monthly Loan Application Defect Index fell by 3.9 percent in August from July and by 5.2 percent from a year ago.

MBA News

 
MBA Accounting & Financial Management Conference in San Diego Nov. 19-21

The Mortgage Bankers Association's Accounting & Financial Management Conference takes place Nov. 19-21 at the Marriott Marquis San Diego Marina.

MBA Education Fundamentals and Best Practices in Mortgage Accounting in San Diego Nov. 19

MBA Education presents a half-day workshop, Fundamentals and Best Practices in Mortgage Accounting, at the Marriott Marquis San Diego Marina on Tuesday, Nov. 19 in conjunction with the MBA Accounting and Financial Management Conference.

MBA Education Foundational Elements of Mortgage Servicing Rights Workshop in San Diego Nov. 19

MBA Education presents Foundational Elements of Mortgage Servicing Rights Workshop, at the Marriott Marquis San Diego Marina on Tuesday, Nov. 19 in conjunction with the MBA Accounting and Financial Management Conference.

MBA Education Webinars Now Free to MBA Members

Beginning October 1, all MBA member companies in good standing will have more MBA benefits to celebrate, including complimentary access to all online education webinars and webinar recordings.

About Servicing NewsLink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem jmechem@mba.org

Editor: Mike Sorohan 202/557-2855 msorohan@mba.org 

Editorial Director: Michael Tucker 202/557-2851 mtucker@mba.org 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856 lhall@mba.org

Advertising Opportunities: Bill Farmakis 203/834-8832 bill@jlfarmakis.com

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One Voice. One Vision. One Resource. The Mortgage Bankers Association (MBA) is the national association representing the entire real estate finance industry. For more information visit us at mba.org.