HousingWire, Dec. 29, 2017–Ben LaneThanks to the new agreement between the Federal Housing Finance Agency and the Treasury, each of the GSEs withheld billions from the Treasury to ensure that each has enough capital on hand to “cover other fluctuations in income in the normal course of each Enterprise’s business.”
Category: Top National News
Reg Relief, GSEs to Dominate Banking Policy on Capitol Hill in ’18
National Mortgage News, Dec. 29, 2017–Ian McKendry (subscription)Congress is likely to pass significant changes to the Dodd-Frank Act early next year and then attempt to overhaul roughly a third of the U.S. economy by restructuring the housing finance system.
Judge Says PricewaterhouseCoopers Was Negligent In Colonial Bank Failure
Wall Street Journal, Dec. 31, 2017–Michael Rapoport (subscription)PricewaterhouseCoopers LLP was negligent in connection with one of the biggest bank failures of the financial crisis, a federal judge has ruled, opening up the Big Four accounting firm to the potential of hundreds of millions of dollars in damages.
Hensarling on Short List of CFPB Director Prospects
Dallas Morning News, Dec. 29, 2017–Todd J. GillmanOf the eight Texas congressmen retiring in 2018, Dallas Rep. Jeb Hensarling is among the ones going out on top. He’s reportedly on a shortlist to run the Consumer Financial Protection Bureau — an opportunity to defang an agency he’s spent years trying to kill off.
Consumer Bureau to Revise Mortgage, Prepaid Card Rules from Cordray Era
The Hill, Dec. 21, 2017–Sylvan LaneThe Consumer Financial Protection Bureau will no longer assess penalties against mortgage lenders and banks for errors collected in data next year that is subject to the Home Mortgage Disclosure Act. The bureau also won’t ask for lenders to resubmit such data if errors aren’t “material” to the information provided. The CFPB also said it would begin the process of making a rule to revise parts of the CFPB’s 2015 rule regarding HMDA.
Treasury Will Allow Fannie, Freddie to Retain Small Capital Buffer
Wall Street Journal, Dec. 21, 2017–Nick Timiraos, Andrew Ackerman (subscription)Mortgage-finance giants Fannie Mae and Freddie Mac will retain some of their quarterly earnings as part of an agreement between the Trump administration and their regulator to allow the companies to build a small buffer against future operating losses.
Trump Watchdog’s Reversal on Bank Oversight Ripped by Democrats
Bloomberg, Dec. 21, 2017–Jesse HamiltonA decision by the Office of the Compotroller of the Currency to keep government examiners inside banks is drawing criticism from Senate Democrats, who said it will make watchdogs more likely to sympathize with finance executives they are responsible for policing.
Notice to Readers
This is the final issue of MBA Servicing NewsLink for 2017. We will not publish next Tuesday, Dec. 26. MBA offices will be closed from Friday, Dec. 22 through Tuesday, Jan. 2. On behalf of MBA officers and staff, thank you for your MBA membership and have a safe and happy holiday season.
Fannie, Freddie Recommit to Financing Chattel Loans
National Mortgage News, Dec. 18, 2017–Bonnie Sinnock (subscription)Fannie Mae and Freddie Mac’s final Duty to Serve plans move ahead with expanded support for manufactured housing through both single-family and multifamily programs, including controversial personal property loans.
Three Looming Worries for Bankers in Final Tax Reform Plan
National Mortgage News, Dec. 18, 2017–Ian McKendry (subscription)Congress is close to the finish line in passing a major tax overhaul, and bankers are still clear winners from the compromise worked out between House and Senate negotiators. But the bill also still includes some caveats that might give certain institutions pause.