Bloomberg, Feb. 19, 2019–Christopher MaloneyMortgage loan servicers will be thrust into the spotlight as the success of the so-called Uniform mortgage-backed securities set to launch on June 3 is highly dependent on the continued convergence of prepayment speeds seen in Fannie Mae and Freddie Mac securities.
Category: Top National News
The Eroding Barriers Between Forward and Reverse Mortgage Originators
Reverse Mortgage Daily, Feb. 19, 2019–Martin OlsenAs more reverse mortgage companies continue to expand their operations into the forward space in response to business changes and new realities, a shift appears to be taking place in what was once seen as conventional wisdom: the separation of forward and reverse mortgage business practices, in order for originators to remain specialized in one of the fields so that more dedicated service could be provided one way or the other.
White House is Making Hard Job of GSE Reform Even Harder
American Banker, Feb. 19, 2019–Victoria Finkle (free article)It’s understandable and even expected that an administration wouldn’t be entirely forthcoming while it’s developing a policy for overhauling something as large as the mortgage finance market, given the potential impact to so many facets of the economy.But that doesn’t explain away the competing narratives of the last few weeks–narratives that actually seem to contradict each other.
U.S. Mortgage Delinquencies Hit 18-Year Low in Q4 2018–MBA
Reuters, Feb. 15, 2019U.S. homeowners who fell behind on their mortgage payments dropped to the lowest levels in 18 years in the final quarter of 2018, the Mortgage Bankers Association said on Friday.
Amazon’s Pivot Raises Scrutiny of Incentive Deals
Wall Street Journal, Feb. 15, 2019–Valerie Bauerlein, Kate King, Cameron McWhirter (subscription)The collapse of Amazon.com Inc.’s plan to build a second headquarters in New York City has the potential to damp some states’ willingness to offer tax breaks. Spurred by Amazon’s second-headquarters selection process, politicians and groups long opposed to incentive packages have launched legislative efforts to prohibit them in some states.
Mel Watt Attempted to ‘Coerce’ Relationship While FHFA Director, IG Report Says
Washington Post, Feb. 15, 2019–Renae MerleFormer congressman Mel Watt misused his position as director of the Federal Housing Finance Agency by attempting to “coerce or induce” a relationship with a female employee seeking a promotion, according to a previously unreleased inspector general’s report. Watt has denied the allegations.
Echoes of the Subprime Era in Energy Efficiency Lending
Los Angeles Times, Feb. 17, 2019–Andrew KhouriAs stories piled up of homeowners beig smooth-talked into taking home improvement loans they couldn’t afford, defenders of the PACE program cited its safety features. But some contractors apparently dance around those rules, as shown by the recent collapse of two firms.
Why PACE Has Become a ‘Second-Look’ Product in California
National Mortgage News, Feb. 15, 2019–Allison Bisbey (subscripition)The state’s tougher oversight has stripped Property Assessed Clean Energy of its go-to project financing status among contractors. That shift may result in adverse selection.
Reform of Fannie, Freddie Should Fall to Congress: FHFA Nominee
National Mortgage News, Feb. 14, 2019–Hannah Long (subscription)The nominee to run the Federal Housing Finance Agency, Mark Calabria, appeared to lean toward having Congress reform the government-sponsored enterprises, despite recent speculation that the Trump administration was readying a plan that could be carried out without legislation.
House Lawmaker Warns of CECL’s Impact on Fannie, Freddie
National Mortgage News, Feb. 14, 2019–Neil Haggerty (subscription)Rep. Blaine Luetkemeyer, R-Mo., told acting Federal Housing Finance Agency Director Joseph Otting that he is concerned the Financial Accounting Standards Board’s new model for estimating loan losses, which has long drawn industry criticism, could pose risk across the mortgage market.