The Federal Housing Administration yesterday issued a temporary waiver of its Single Family Housing Policy Handbook4000.1 to temporarily suspend the requirement that mortgagees select and review all Early Payment Defaults on a monthly basis.
Category: News and Trends
CFPB Issues Notices of Rulemaking to Address GSE ‘Patch’
The Consumer Financial Protection Bureau Monday issued two Notices of Proposed Rulemaking to address the impending expiration of the Government-Sponsored Enterprises Patch, also known as the GSE Patch, which affects nearly one million mortgage loans.
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“MBA appreciates the CFPB’s proposed changes to the QM Rule and extension of the GSE Patch. As proposed, the regulatory changes would seek to ensure creditworthy borrowers have access to sustainable mortgage credit without disruption to the overall mortgage market. MBA looks forward to reviewing and commenting on both rules, and we will continue to work with policymakers and all other stakeholders to ensure borrowers are both protected and have access to credit throughout the mortgage lending process.”
–MBA President and CEO Bob Broeksmit, CMB, on the Consumer Financial Protection Bureau’s Notice of Proposed Rulemakings to change its Qualified Mortgage rule and extend the GSE “patch” for GSE loans.
May Existing Home Sales Down Nearly 10%–But Analysts See Upside
Existing home sales fell by nearly 10 percent in May from April—the third consecutive monthly decline in the wake of the coronavirus outbreak—the National Association of Realtors reported yesterday. But analysts saw positive signals despite the drop, as first-time buyer and Millennial demand showed signs of intensifying.
MBA Advocacy Update
Last week, Federal Reserve Chairman Jerome Powell appeared before both the Senate Banking and House Financial Services Committees to give his semi-annual monetary report to Congress. Last Thursday, California Assembly Bill 2501, which would have enacted sweeping new forbearance standards beyond federal CARES Act mandates for residential and multifamily mortgages, was not approved ahead of a critical procedural deadline – a big win for the industry.
MBA Advocacy Update
Last week, Federal Reserve Chairman Jerome Powell appeared before both the Senate Banking and House Financial Services Committees to give his semi-annual monetary report to Congress. Last Thursday, California Assembly Bill 2501, which would have enacted sweeping new forbearance standards beyond federal CARES Act mandates for residential and multifamily mortgages, was not approved ahead of a critical procedural deadline – a big win for the industry.
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“Fewer homeowners in forbearance underscores the continued improvements in the job market, and provides another sign of the fundamental health of the housing market, which has rebounded considerably over the past several weeks.”
–Mike Fratantoni, MBA Senior Vice President and Chief Economist.
MBA: Shares of Loans in Forbearance Falls to 8.48%
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey showed loans now in forbearance decreased – for the first time since the survey’s inception in March – from 8.55% of servicers’ portfolio volume in the prior week to 8.48% as of June 14.
MBA: Share of Mortgage Loans in Forbearance Falls to 8.48%
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey showed loans now in forbearance decreased – for the first time since the survey’s inception in March – from 8.55% of servicers’ portfolio volume in the prior week to 8.48% as of June 14.
Industry Briefs June 23, 2020
Black Knight, Jacksonville, Fla., said homeowners in active forbearance fell again last week. Overall, the number of active forbearance plans is down 57,000 from the previous week and 158,000 from the peak the week of May 22.