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Volume 9 | Issue 40 | Tuesday, October 08, 2019

The Lede

 

Millennials Moving More Frequently Than Previous Generations

Millennials are moving more often and living in their homes for a shorter period than previous generations, said Zillow Inc., Seattle.

 

Top National News

 
Kraninger's Stance on CFPB Constitutionality Puts Rules in Limbo

National Mortgage News, Oct. 1, 2019--Kate Berry (subscription)
By declaring that the Consumer Financial Protection Bureau is unconstitutional, CFPB Director Kathy Kraninger has potentially opened a floodgate of litigation against the agency.

Fannie Mae and Freddie Mac Now Appear to Be Here to Stay. How Did that Happen?

HousingWire, Oct. 3, 2019--Ben Lane
When the federal government announced earlier this week that it would allow Fannie Mae and Freddie Mac to rebuild a portion of their capital reserves to a total of $45 billion combined as part of a plan to exit conservatorship, the message was clear: The government-sponsored enterprises are back and they're not likely to go away any time soon.

Federal Government Has Dramatically Expanded Exposure to Risky Mortgages

Washington Post, Oct. 2, 2019--Damian Paletta
The federal government has dramatically expanded its exposure to risky mortgages, as federal officials over the past four years took steps that cleared the way for companies to issue loans that many borrowers might not be able to repay. (MBA mention)

How Mortgage Servicers Can Prepare For the Next Downturn

Mortgage Orb, Oct. 4, 2019--Angela Hurst
To ensure sustainability during a market downturn, mortgage servicers must closely examine their current infrastructure, services and tools to ensure they provide the ability to not only track processes, but also allow users to automatically analyze the viability of different scenarios.

Judge Rules on Ocwen's Mortion to Dismiss Florida Lawsuit

National Mortgage News, Oct. 2, 2019--Bonnie Sinnock (subscription)
A federal judge granted in part and denied in part Ocwen Financial's motion to dismiss Florida regulators' case against the company, the last remaining of 30 state lawsuits filed in 2017.

New Residential Investment Buys Ditech Financial for $1.2 Billion

HousingWire, Oct. 2, 2019--Ben Lane
Just one day after selling Reverse Mortgage Solutions to Mortgage Assets Management, the nonbank formerly known as Walter Investment Management sold off its forward mortgage business Ditech Financial to New Residential Investment for $1.2 billion.

This Widening Crack in the Mortgage Market Could Sink U.S. Home Prices

MarketWatch, Oct. 3, 2019--Keith Jurow
The author says Wall Street and the news media have paid considerable attention to U.S. home mortgage modifications, but not much notice has been given to the growing problem of re-defaults on these modifications.

17% of Young Homebuyers Regret Their Purchase, Zillow Survey Shows

Reuters, Oct. 3, 2019--Lucia Mutikani
Coming on the heels of news this week that manufacturing activity plunged to a more than 10-year trough in September, the survey from the Institute for Supply Management on Thursday increased the risks of a recession. For now, a solid labor market is keeping the economy on a moderate growth path. (MBA mention)

Manhattan Resale Home Prices Drop Most Since '11 as Sellers Cave

Bloomberg, Oct. 2, 2019--Oshrat Carmiel
Resale prices for Manhattan apartments tumbled the most in more than eight years, pushed down by buyer demands for discounts in a market swamped with choices.

Fannie and Freddie Get to Keep Their Earnings. Now What?

American Banker, Oct. 4, 2019--Hannah Lang (subscription)
The recent announcement that Fannie Mae and Freddie Mac will be allowed to keep profits for the first time since 2012 was seen as a crucial early step in reforming the mortgage giants. But the news immediately shifted focus to a bigger question about their financial standing.

No Mortgage: Single-Family Homes Built to Rent, Not to Buy

NPR, Oct. 7, 2019--Chris Arnold
In the past year, developers around the country built more than 40,000 homes as single-family rentals.

Ruling Cuts Short Debt Collectors' Victory Lap over CFPB Proposal

National Mortgage News, Oct. 7, 2019--Kate Berry (subscription)
Debt collectors notched a victory when the Consumer Financial Protection Bureau proposed allowing more use of electronic communication. But industry lawyers are worried a recent court decision could thwart that plan.

News & Trends

 
Dispose Distress Early to Minimize Loss Severity

A new study of distressed property dispositions between 2003 and 2017 by Fannie Mae and academic researchers finds loss severity on nonperforming loans is lower when properties are disposed of early, before a lender takes ownership.

Ellie Mae: Millennial Refis in August Amid Rate Drops

Ellie Mae, Pleasanton, Calif., said interest rates hovering at or below 4 percent spurred a "surge" in millennial refinances in August.

Millennials Moving More Frequently Than Previous Generations

Millennials are moving more often and living in their homes for a shorter period than previous generations, said Zillow Inc., Seattle.

Black Knight: Lower Interest Rates Boost Home Affordability to Three-Year High

Black Knight, Jacksonville, Fla., said low interest rates reduced the national median income to make monthly principal and interest payments on the average-priced home in September to the most affordable level in three years.

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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