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Volume 9 | Issue 38 | Tuesday, September 24, 2019

The Lede


MBA: 2Q Commercial/Multifamily Mortgage Delinquencies Remain Low

Commercial and multifamily mortgage delinquencies remained low in the second quarter, according to the Mortgage Bankers Association's 2Q Commercial/Multifamily Delinquency Report.


News & Trends

The Crime Scene: FBI Provides Update on Fraud

CHICAGO--Kyle Armstrong, Supervisory Special Agent with the Federal Bureau of Investigation, said mortgage fraud is hitting every part of the U.S. in every one of the Bureau's 56 field offices.

GSEs Seeing Fewer Defects, Better QC Results

CHICAGO--Representatives of Fannie Mae and Freddie Mac here at the Mortgage Bankers Association's Risk Management, QA and Fraud Prevention Forum said quality of loans submitted to them show better quality control processes and fewer defects, but cautioned that the defects the do appear show a greater degree of sophistication.

MBA, Others Urge Terrorism Risk Insurance Act Reauthorization

The Mortgage Bankers Association and more than 100 other organizations representing various business interests urged Congress to reauthorize the Terrorism Risk Insurance Act, which is set to expire at year-end 2020.

CFPB to Enhance Consumer Complaint Database

The Consumer Financial Protection Bureau announced it will continue publication of consumer complaints, data fields and narrative descriptions through the Bureau's Consumer Complaint Database while making several enhancements to the information available to users of the database.

FHFA Ends Mortgage Servicing Rights Financing Pilot Program

The Federal Housing Finance Agency yesterday announced the end of the Mortgage Servicing Rights financing pilot program for Fannie Mae and Freddie Mac.

ATTOM: Home Flipping Returns Drop to 8-Year Lows

ATTOM Data Solutions, Irvine, Calif., said home flipping in the second quarter increased by 12.4 percent from the first quarter but fell by 5.2 percent from a year ago.

Black Knight: August Foreclosure Starts at 18-Year Low

Black Knight, Jacksonville, Fla., said its First Look Mortgage Monitor for Augus found foreclosure starts hit an 18-year low, while borrowers took advantage of lower mortgage rates to increase their level of prepayments.

ARMCO QC Trends Report: Loan Quality Corrects with Market's Upturn

ACES Risk Management, Pompano Beach, Fla., released its quarterly Mortgage QC Trends Report, showing critical defect rates fell by 6% in the first quarter from the previous quarter.

August CMBS Special Servicing Rate Declines

Trepp, New York, reported the volume of commercial mortgage-backed securities loans and assets in special servicing declined again in August, falling three basis points to 3.22 percent.

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.

Top National News

Housing Industry Calls for End of QM Patch, DTI Limits

HousingWire, Sept. 17, 2019--Kelsey Ramirez
A rule that allows government-sponsored enterprises Fannie Mae and Freddie Mac to sidestep stricter mortgage underwriting requirements is set to expire in 2021, and while that may seem like a ways away, its pending removal has sparked widespread debate throughout the industry. (MBA mention)

How Supreme Court Could Decide CFPB Constitutionality Question

National Mortgage News, Sept. 23, 2019--Kate Berry (subscription)
A Supreme Court review of the Consumer Financial Protection Bureau's leadership structure looks even more likely now that the Department of Justice and the agency's own director have agreed that that structure is unconstitutional.

CFPB's Kraninger Agrees: Her Job Security is Unconstitutional

National Mortgage News, Sept. 17, 2019--Kate Berry (subscription)
Kathy Kraninger, the director of the Consumer Financial Protection Bureau, gave more support Tuesday to the Trump administration's position that the agency she runs exceeds constitutional limits.

Led by Trump Appointee, CFPB is Back in the Enforcement Business

National Mortgage News, Sept. 18, 2019--Kate Berry (subscription)
The Consumer Financial Protection Bureau has ratcheted up investigations and enforcement actions in the past few months, an apparent shift by the agency under Director Kathy Kraninger, who had initially signaled that supervision would be the primary focus in her tenure.

Senate Dems Urge CFPB to Extend QM Patch

American Banker, Sept. 17, 2019--Neil Haggerty (subscription)
Senate Democrats are warning the Consumer Financial Protection Bureau to be careful as it considers changes to its mortgage underwriting rules.

Fannie, Freddie Recapitalization Unlikely Before 2020 Election: KBW

National Mortgage News, Sept. 23, 2019--Brad Finkelstein (subscription)
Recapitalization of Fannie Mae and Freddie Mac prior to the 2020 election is unlikely even if the net worth sweep ends, according to a Keefe, Bruyette & Woods report.

Fannie, Freddie Poised to Keep Profits in an Initial Privatization Move

Wall Street Journal, Sept. 22, 2019--Andrew Ackerman (subscription)
Mortgage-finance companies Fannie Mae and Freddie Mac are expected to start keeping their earnings as early as this week, pausing a yearslong arrangement in which they handed nearly all of their profits to the Treasury Department.

Trump Housing Plan Could Have Unexpected Consequences for FHA

National Mortgage News, Sept. 19, 2019--Hannah Lang (subscription)
In its vision for the future of housing finance, the Trump administration foresees a smaller role for the Federal Housing Administration. Yet many of the ideas outlined for the FHA in a Sept. 5 report by HUD have raised eyebrows and have some former FHA officials concerned.

Life Insurance Companies to Fuel Multifamily Surge in 2020

HousingWire, Sept. 17, 2019--Kelsey Ramírez
Life insurance companies are set to create a surge in multifamily lending in 2020, according to a new study from the Mortgage Bankers Association.

Mortgage Investors Need Not Fear Supply Surge From New Housing

Bloomberg, Sept. 18, 2019--Christopher Maloney
Mortgage investors are unlikely to see a net supply surge even should interest rates continue to move lower, if only because the pace of new home construction is far slower than it used to be.

Flagstar Recovers a Small Portion of Its Loan to Live Well

National Mortgage News, Sept. 19, 2019--Brad Finkelstein (subscription)
Flagstar Bank expects to recover $1 million of its loan to defunct reverse mortgage lender Live Well Financial following the sale of the collateral that secured it.

Burgeoning Real Estate Giant Pretium Buys Deephaven Mortgage from Varde Partners

HousingWire, Sept. 19, 2019--Ben Lane
Pretium, an investment management firm that already owns one of the nation's largest single-family rental operators and buys non-performing loans from Fannie Mae and Freddie Mac by the truckload, is now in the non-Qualified Mortgage lending business after acquiring Deephaven Mortgage.

More Baby Boomers Are Living in Multigenerational Housing

Bloomberg, Sept. 20, 2019--Arianne Cohen
A 2018 Columbia University study found that healthy adults who reside in multigenerational housing live longer. And a Pew Research Center analysis last year found that Americans are increasingly residing multigenerationally-20% of Americans live in a home that includes adults from two or more generations, up from 12% in 1980. Developers have taken note.

Emerging Trends in Real Estate: Investors Still Favor U.S. CRE

U.S. commercial real estate remains a favored asset class even as economic uncertainty looms, said the Urban Land Institute and PwC.

Repo-Market Tumult Raises Concerns About New Benchmark Rate

Wall Street Journal, Sept. 23, 2019--Daniel Kruger, Vipal Monga (subscription)
The tumult in the market for short-term cash loans highlights some analysts' concerns about the Secured Overnight Financing Rate, the Federal Reserve's proposed replacement for the troubled London Interbank Offered Rate, or LIBOR.

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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