HousingWire, June 29, 2017–Bill CosgroveFormer MBA chairman urges smaller lenders like him to reject notion that GSE reform is bad for them and says failure of Congress to act is their biggest threat.
Category: Top National News
Four Issues that Could Trip up Senate Housing Finance Bill
National Mortgage News, June 29, 2017–Ian McKendry (subscription)In a political atmosphere of intense partisan divisions, Republicans and Democrats on the Senate Banking Committee sounded on the same page about how to reform Fannie Mae and Freddie Mac during a panel hearing on Thursday. (MBA mention)
Non-QM Is Not The New Subprime
Mortgage Daily, June 29, 2017A new report indicates residential lending to borrowers who don’t meet Qualified Mortgage rule requirements is not the same as pre-crisis subprime lending.
Bipartisan Overhaul of GSEs Reportedly in the Works
National Mortgage Professional, June 30, 2017–Phil HallSen. Mark Warner, D-Va., told a Mortgage Bankers Association conference last week that he and Sen. Bob Corker, R-Tenn., had found consensus on several issues, including developing a system that maintains the 30-year mortgage.
Wells Fargo Unsettles Mortgage Bond Market by Holding Back Funds
Bloomberg, June 30, 2017–Alastair Marsh, Tracy AllowayThe bank said it invoked its right as trustee to hold back funds to cover legal costs. The 20 transactions had a principal balance of $540 million and are among more than 2,000 deals involved in a lawsuit brought by bondholders.
Morgan Stanley Nears $400 Million in Consumer Relief for Mortgage Bond Settlement
HousingWire, June 30, 2017–Ben LaneThe settlement covers Morgan Stanley’s “deceptive” mortgage bond practices in the run-up to the financial crisis and requires the company to provide $400 million in consumer relief for New York residents affected by the company’s alleged actions.
GSE Reform Returns to Center Stage
Scotsman Guide, July 3, 2017–Victor WhitmanThe Mortgage Bankers Association envisions turning Fannie and Freddie into utilities and chartering other companies to compete against them. MBA President and CEO David Stevens said the trade group’s plan was developed with input from its small lenders, and their proposal protects them.
Fed Eyes September Announcement on Balance-Sheet Reduction
Wall Street Journal, July 5, 2017–Nick Timiraos (subscription)Federal Reserve officials have indicated there is a strong chance they will announce in September a decision to start shrinking the central bank’s portfolio of bonds and other assets, while putting off until December any further interest-rate increase.
More Securitized Commercial Real Estate Debt Becomes Delinquent in June
Dow Jones Newswire, July 4, 2017–Esther FungThe delinquency rate for securitized commercial real-estate loans jumped 28 basis points to 5.75% in June from May, the biggest month-over-month increase since March 2012 and up sharply from the 4.6% recorded in June last year, according to real estate provider Trepp Inc.
Nearly $300 Million in Freddie Mac Loans Sold
Mortgage Daily, June 20, 2017Nearly $300 million in re-performing and moderately delinquent single-family mortgages have been sold with a securitization to follow.