Reuters, Aug. 5, 2019–Ann SaphirU.S. banks left loan standards unchanged on commercial and industrial loans to large and mid-sized firms during the second quarter, even as they eased standards on such loans to smaller firms and eased most terms for all size firms, according to a survey of bank officers published on Monday.
Category: Top National News
Lenders Dread Prospect of Fannie, Freddie Losing CFPB Exemption
National Mortgage News, Aug. 2, 2019–Kate Berry (subscription)Mortgage lenders are fearful that the bottom will fall out of the housing market if the Consumer Financial Protection Bureau’s proposal to revise underwriting rules reduces the volume of loans sold to Fannie Mae and Freddie Mac.
As Mortgage-Interest Deduction Vanishes, Housing Market Offers a Shrug
New York Times, Aug. 4, 2019–Jim Tankersley, Ben CasselmanThe mortgage-interest deduction, a beloved tax break bound tightly to the American dream of homeownership, once seemed politically invincible. Then it nearly vanished in middle-class neighborhoods across the country, and it appears that hardly anyone noticed.
HUD Loan Sale Program Puts Consumers in Harm’s Way: GAO
National Mortgage News, Aug. 2, 2019–Elina Tarkazikis (subscription)Mortgage loans sold through HUD’s Distressed Asset Stabilization Program- mainly to private equity firms -are more likely to result in foreclosure than unsold loans, according to the GAO report.
Wells Fargo to Tech Vendors: Please Send Us a Check
Wall Street Journal, Aug. 2, 2019–Rachel Louise Ensign (subscription)Wells Fargo & Co., in cost-cutting mode, recently asked outside technology consultants to refund some of the money the bank has spent with them in the past year, saying the vendors benefited from its regulatory problems.
FDIC Chief Warns Banks Could Face Fines for Cyber Breaches
National Mortgage Professional, Aug. 2, 2019–Phil HallFDIC Chair Jelena McWilliams stated that cybersecurity was “something we take very seriously.” She warned banks that they could face enforcement penalties if they allow cybersecurity breaches to impact their data safety.
Ginnie Mae Takes Steps to Squash VA Loan Churning
HousingWIre, Aug. 1, 2019–Jessica GuerinGinnie Mae is taking yet another step to squash abuses, announcing Thursday it is moving forward with a proposal to remove VA-backed cash-out refinances with high loan-to-value ratios from its flagship securities.
Fannie Mae Preparing to Handle Transitions in QM, Mortgage Rates
National Mortgage News, Aug. 1, 2019–Bonnie Sinnock (subscription)Fannie Mae’s current tack could help it weather some of the new challenges confronting it, including the planned expiration of its qualified mortgage rule exemption and rate-driven earnings volatility.
Tax Credits Could Help Foreclosure Victims Buy Homes Again
San Bernardino Sun, Aug. 1, 2019–Jeff LazersonTax credits would be new for mortgage victims, but it’s not unprecedented. CPA Jeff Hipshman of HMWC CPA’s and Advisors points to employment-related tax credits.
HUD Plan Would Raise Bar for Claims of Fair Lending Abuse
National Mortgage News, July 31, 2019–Hannah Lang (subscription)Under a HUD proposal that circulated Wednesday but has not officially been unveiled, a consumer would have to follow a more rigorous five-step framework to demonstrate that discrimination occurred. The “disparate impact” doctrine can be used to punish lenders for discriminatory effects even if none were intended.