HousingWire, Nov. 20, 2018–Ben LaneTitle insurance companies in 12 of the nation’s largest markets will now have to provide federal authorities with substantial details on all real estate deals of $300,000 or more if the buyer is paying all cash. The requirement comes at the hands of the Treasury Department’s Financial Crimes Enforcement Network.
Category: Top National News
GSEs Establish Tougher Standards for Green Apartment Loans in 2019
National Real Estate Investor, Nov. 20, 2018–Bendix AndersonMultifamily borrowers will have to do a lot more in 2019 to get the lower interest rates offered by Fannie May and Freddie Mac’s popular “green” lending programs.
‘I Can Be the Bank’: Individual Investors Buy Busted Mortgages
Wall Street Journal, Nov. 20, 2018–Ben Eisen, Cezary Podkul (subscription)A decade after the housing crisis, new risk takers invest in nonperforming loans–often written off by banks–and push the borrowers to start paying on them again.
First Mortgage Default Rate Holds Steady
National Mortgage Professional, Nov. 20, 2018–Phil HallThe default rate on first mortgages remained unchanged at 0.63 percent from September to October, according to data from the S&P/Experian Consumer Credit Default Indices.
FDIC Unveils Long-Awaited Community Bank Leverage Ratio
American Banker, Nov. 20, 2018–Rachel Witkowski (subscription)The plan would create a community bank leverage ratio for institutions with less than $10 billion of assets which smaller banks could comply with in lieu of more complicated Basel risk-based capital standards. Under the proposal, the ratio was set at 9% of tangible equity to total assets.
Lower Credit Score Mortgages Inch Up Amid Broader Subprime Resurgence
National Mortgage News, Nov. 19, 2019–Bonnie Sinnock (subscription)Subprime originations are climbing in multiple consumer loan categories, including mortgages, but the increase is much smaller in the home loan sector than it is in other markets, according to TransUnion.
Will Democrats’ Midterm Success Spur Progress on GSE Reform?
National Mortgage News, Nov. 18, 2018–Hannah Lang (subscription)Since 2015, Republicans have largely presided over congressional attempts to reform housing finance, or the lack thereof. Come January, House Democrats will have more say about where to place Fannie Mae and Freddie Mac on the agenda.
Ginnie Mae Intensifies Scrutiny of Financings, Subservicer Pacts
National Mortgage News, Nov. 16, 2018–Bonnie Sinnock (subscription)Ginnie Mae is adding steps to its process for evaluating new issuers, including new notification requirements related to subservicer advances, servicing income, and borrowing facilities secured by mortgage servicing rights.
U.S. Household Debt Continues to Climb in 3rd Quarter
Wall Street Journal, Nov. 16, 2018–Harriet Torry (subscription)Household indebtedness continued to climb in the third quarter, with balances continuing to rise for almost all types of borrowing, the Federal Reserve Bank of New York reported Friday.
Financial Overregulation Wasted the Last Eight Years
The Hill, Nov. 18, 2018–Thomas VartanianNone of the four non-bank companies originally designated as systemically important financial institutions between July 2013 and December 2014 are still SIFIs. The designations of GECC, AIG and Prudential were all eventually rescinded, and MetLife successfully challenged its designation in federal court.