New York Times, May 13, 2018 (Editorial)The Times’ editors say HUD Secretary Ben Carson is illegally trying to sweep aside rules that are fully consistent with the Fair Housing Act. It supports a lawsuit filed by community groups and says the court should force HUD to reinstate and fully enforce those rules.
Category: Top National News
100% LTV Program Launches
Mortgage Daily, May 11, 2018The product, dubbed Community Program by Arch Mortgage Guaranty Co., allows loan-to-value ratios as high as 100 percent for professionals–including mortgage bankers.
Banks are Walking Away from Low-Income Homebuyers
CNN Monty, May 11, 2018–Lydia DePillisNewly released federal data on mortgage lending from the Consumer Financial Protection Bureau shows people with low- and moderate-incomes made up only 26.3% of borrowers in 2017, down from 36.6% in 2009. “Profit margins on lending have come down quite a bit,” says Mike Fratantoni, chief economist at the Mortgage Bankers Association, which represents both banks and non-banks. “So a number of banks have de-emphasized their mortgage lending, because there are other business lines they can focus on.”
Financial Industry Petitions FCC to Make Robocall Lawsuits Harder to Win
National Mortgage News, May 10, 2018–Brad Finkelstein (free story)If a financial industry petition to the Federal Communications Commission on the use of autodialers is successful, it could make Telephone Consumer Protection Act cases more difficult to prove for consumer attorneys. But a favorable ruling likely won’t halt the proliferation of these suits.
CFPB to Dramatically Reorganize Operational Structure
HousingWire, May 10, 2018–Kelsey RamirezConsumer Financial Protection Bureau Acting Director Mick Mulvaney announced in an email to staff that he plans to reorganize the bureau’s operational structure.
Treasury Will Sell $101 Billion in Debt
Wall Street Journal, May 10, 2018The U.S. will auction $101 billion in securities next week, comprising $42 billion in new debt and $59 billion in previously sold debt.
Downsizing and Servicing Offset Lower Volume at Impac Mortgage
National Mortgage News, May 10, 2018–Bonnie Sinnock (subscription)Impac Mortgage Holdings Inc. generated almost $4 million in net income during the first quarter as it continued to downsize to adjust for origination declines and benefited from servicing gains.
GSE Reform Is Dead–Long Live GSE Reform!
Urban Institute, May 9, 2018–Jim Parrott, Mark M. ZandiAs it becomes apparent that the 115th Congress will not pass legislation to reform Fannie Mae and Freddie Mac, the authors describe the path the current administration will likely take to reform the government-sponsored enterprises administratively.
Mulvaney Guts CFPB’s Student Lending Office
American Banker, May 9, 2018–Kate Berry (subscription)Mick Mulvaney on Wednesday announced a restructuring of the Consumer Financial Protection Bureau that will strip the agency’s student lending office of all functions except consumer education.
RBS Reaches $4.9 Billion Deal to Settle U.S. Mortgage Bond Investigation
Reuters, May 9, 2018–Nate Raymond, Eric Walsh, Sinead CruiseRoyal Bank of Scotland has agreed to pay a smaller-than-expected $4.9 billion to resolve a U.S. investigation into its sale of mortgage-backed securities, paving the way for a long-awaited return of cash to UK taxpayers who bankrolled its post-crisis survival.