HousingWire, Oct. 1, 2018–Jessica Guerin”We were trying to understand why, in a still relatively low interest rate market where house prices have returned in most major markets including in many of these states where reverse mortgages were, why were we still hemorrhaging money,” FHA Commissioner Brian Montgomery said. “We thought this was a contributing factor that required further due diligence.”
Category: Top National News
Beaten-Down Subprime Mortgage Bonds Offered a Decade of Gains
Bloomberg, Oct. 1, 2018–Claire BostonFund managers that took a chance on beaten-down mortgage bonds sometime after Lehman Brothers collapsed have seen their money swell as the housing market has recovered. Home loans for even troubled consumers have turned out to be more solid than many investors had feared: borrowers that weathered the downturn are diligently paying their obligations and defaults at this stage are infrequent.
Lawmakers Urge Fed to Follow Through on Reg Relief for Midsize Banks
American Banker, Sept. 28, 2018–Neil Haggerty (subscription)Nearly 30 House Republicans are calling on the Federal Reserve Board to use new authority to relieve all banks with less than $250 billion of assets from enhanced supervision that was established after the crisis.
Ocwen’s $360 Million Acquisition of PHH to Close Within Days
HousingWire, Sept. 28, 2018–Ben LaneOcwen Financial’s $360 million acquisition of PHH Corp. is set to close within the next two weeks after the companies received approvals from all relevant regulatory agencies and governmental entities, the companies announced Friday morning.
Supreme Court Clash Puts Regulatory Nominees on Back Burner
National Mortgage News, Sept. 28, 2018–Neil Haggerty (subscription)The protracted and hyperpartisan confirmation process for Supreme Court nominee Brett Kavanaugh has complicated the Senate’s efforts to advance financial regulatory nominees before the midterm elections. Trump administration picks for the Consumer Financial Protection Bureau, National Credit Union Administration and Ginnie Mae are still in limbo.
‘It is an Issue for All of Us’: Dissent Spreads at CFPB over Top Aide’s Writings
American Banker, Sept. 30, 2018–Kate Berry, Rachel Witkowski (subscription)Kirsten Donoghue, the CFPB’s assistant director of enforcement, became the second senior leader at the agency to question the fitness of Eric Blankenstein, her boss as policy director of supervision, enforcement and fair lending, after his past writings were uncovered that used a racial slur for African Americans and suggested most hate crimes were “hoaxes.”
2nd Appraisal to Be Required on Some HECMs
Mortgage Daily, Oct. 1, 2018Ongoing losses in the FHA reverse mortgage program have led to a new policy that will require a second appraisal on some transactions.
SEC Fines Former Ocwen Exec for Insider Trading Before CFPB, PHH News
National Mortgage News, Sept, 28, 2018–Brad Finkelstein, Bonnie Sinnock (subscription)Bryan R. Ziegenfuse, who previously was a vice president of servicing at Ocwen, agreed to pay $128,130 plus interest, double the profits he made from the three transactions. He did not admit or deny wrongdoing.
Commercial/Mortgage Debt Outstanding Up in Q2
National Mortgage Professional, Sept. 27, 2018–Phil HallCommercial and multifamily mortgage debt outstanding swelled by $52.3 billion in the second quarter, according to new data from the Mortgage Bankers Association. The second quarter was 1.6 above the first quarter’s debt outstanding.
Fannie Mae, Freddie Mac Tighten Capital Rules for PMI Companies
National Mortgage News, Sept. 27, 2018–Brad Finkelstein (subscription)Fannie Mae and Freddie Mac issued new capital requirements for private mortgage insurers that will create big swings in carriers’ asset reserves.