Wall Street Journal, Aug. 19, 2019–Lalita Clozel (subscription)HUD is moving to roll back an Obama-era policy aimed at rooting out racial bias in housing, the latest move by the Trump administration to weaken a legal tool combating unintentional discrimination.
Category: Top National News
Will Blockchain Revolutionize Mortgage Lending?
Forbes, Aug. 19, 2019–Breana PatelWhat DLT brings to the table is the ability to store all of the myriad paper documents that need be conveyed between players onto a distributed network that is more secure than the status quo. The data would be easier to access, with current steps in the process that take weeks happening in a matter of seconds.
HUD Plan to Alter Anti-Discrimination Rule Called ‘Deepy Cynical’
American Banker, Aug. 16, 2019–Kate Berry (subscription)The agency says the “disparate impact” standard needs to be amended to align with a recent Supreme Court ruling. But consumer advocates say the change would make it more difficult for borrowers to allege discrimination under the Fair Housing Act.
American Mortgage Service Co. and Eustis Mortgage Plan to Merge
HousingWire, Aug. 16, 2019–Ben LaneEustis Mortgage is headquartered in New Orleans and has been in business since 1956 and its companies include Finance Home America, Verity Mortgage, Legacy Mortgage and Prosperity Mortgage Advisors. American Mortgage Service Co. was founded in Cincinnati in 1975 and has grown into a multi-state lender with more than 40 locations.
Bankers Welcome Rush of Refis, But It’s No Cure-All
American Banker, Aug. 15, 2019–Andy Peters (subscription)Mortgage refinancing activity is back from the dead thanks to declining interest rates, and that’s good news for banks that will be starved for additional revenue as lending margins keep tightening. But as with many good things, there’s a catch. (MBA mention)
Lender Risk from CFPB Underwriting Rule Tested in Ohio Case
National Mortgage News, Aug. 15, 2019–Kate Berry (subscription)Lenders have long worried that borrowers would use the Consumer Financial Protection Bureau’s mortgage underwriting rule to fight foreclosure in court. But the outcome of the first known legal attempt may discourage others from trying.
Removal of URLA Language-Preference Question Sparks Controversy
Scotsman Guide, Aug. 14, 2019–Arnie AurellanoImplementation of the redesigned Uniform Residential Loan Application has been delayed due to changes to questions regarding the applicant’s language preferences. Some industry organizations, including the Mortgage Bankers Association, asked FHFA to reconsider, claiming that it would subject lenders to practical issues related to communicating in an applicant’s preferred language, as well as legal risks if they are unable to do so.
Department Stores See Worst Drop Since Macy’s Last Cut Its Outlook
Bloomberg, Aug. 14, 2019–Janet FreundU.S. department store stocks cratered Wednesday after Macy’s cut its annual outlook, fueling the worst trading day for the index since the last time the Bloomingdale’s parent slashed its forecasts in January.
FHA’s Distressed Asset Stabilization Program Should Be Improved, Not Abandoned
Urban Institute, Aug. 14, 2019–Laurie Goodman, Edward Golding, Jim ParrottThe authors argue that the DASP program is not fatally flawed; rather, DASP is a powerful tool that has helped thousands of families avoid foreclosure and has reduced stress on the FHA’s insurance fund, making it easier for FHA to keep premiums low to ensure broad access to homeownership.
U.S. Mortgage Debt Hits Record, Eclipsing 2008 Peak
Wall Street Journal, Aug. 13, 2019–Harriet Torry (subscription)Mortgage balances rose by $162 billion in the second quarter to $9.406 trillion, surpassing the high of $9.294 trillion in the third quarter of 2008, the Federal Reserve Bank of New York said Tuesday.