San Francisco Chronicle, July 17, 2019–Bob EgelkoThe state Supreme Court turned down arguments by two California governors Wednesday and left intact a ruling requiring the state to use $331 million, obtained from a nationwide bank settlement, to help homeowners who were victimized by foreclosures during the last recession.
Category: Top National News
Lawmakers Unveil Competing Flood Insurance Bill
National Mortgage News, July 16, 2019–Hannah Lang (subscription)The bill is sponsored by three senators, Bob Menendez, D-N.J., John Kennedy, R-La., and Bill Cassidy, R-La., and several members of the House, including Reps. Frank Pallone, D-N.J., and Bill Pascrell, D-N.J. It would take further steps to ensure that flood insurance is kept affordable while improving technology to combat flood risks, the lawmakers said during a press conference Tuesday.
FDIC Plan Would Ease Requirement for Banks Selling Mortgage Securities
Wall Street Journal, July 16, 2019–Lalita Clozel (subscription)The Federal Deposit Insurance Corp. on Tuesday released a plan that would ease disclosure requirements implemented in 2010 after the financial crisis that discouraged banks from packaging and reselling mortgage-backed securities, a nearly $10 trillion market.
Former Freddie Mac CEO Says GSEs Should Be Regulated Like Utilities
HousingWire, July 16, 2019–Kathleen HowleyTwo weeks into his new gig as a senior fellow at Harvard University’s Joint Center for Housing Studies, Donald Layton, who was the CEO of Freddie Mac until the end of June, is speaking out–in favor of regulation.
Life Insurers Upped Mortgage Investments Risky in Case of Downturn
National Mortgage News, July 15, 2019–Brad Finkelstein (subscription)Life insurance companies increased their mortgage investments to levels higher than historical norms, creating more potential danger for their portfolios in the event of a real estate downturn, a Fitch Ratings report said.
Nomura to Pay $25 Million Over Mortgage Bond Traders’ Lies
Bloomberg, July 15, 2019–Matt RobinsonA Nomura Holdings Inc. unit will repay customers about $25 million to settle U.S. regulators’ allegations that it failed to supervise traders who made false statements in negotiating sales of mortgage securities.
Realogy Slapped with Class Action Suit for Securities Fraud
HousingWire, July 15, 2019–Jessica GuerinAccording to the suit filed Thursday by The Rosen Law Firm in the U.S. District Court of New Jersey, Realogy filed false and misleading statements with the Securities and Exchange Commission by not disclosing that it was engaging in “anticompetitive behavior by requiring property sellers to pay a buyer’s broker an inflated fee.”
Insurance Companies Expand Multifamily Financing Options
Colorado Real Estate Journal, July 13, 2019–Cooper WilliamsAccording to research conducted by the Mortgage Bankers Association, the insurance companies’ mortgage debt holdings increased by 9% in 2018, which is higher than the overall market average for multifamily debt holdings.
Banks Nearly Have REO Monday Off Their Backs a Decade After Crisis
Naitonal Mortgage News, July 14, 2019–Jon Prior (subscription)Banks have reduced their holdings of foreclosed one- to four-unit family residences to roughly $2.6 billion of homes, down from more than $14 billion during the fallout of the housing market’s collapse in 2010, according to Federal Deposit Insurance Corp. data.
Financial Watchdog Shifts From Enforcer to Educator
Wall Street Journal, July 12, 2019–Yuka Hayashi (subscription)Critics say the Consumer Financial Protection Bureuau’s push shifts the burden of consumer protection from financial companies to ordinary citizens.