“Forbearance exits increased in the week of the July 4 holiday to the fastest pace since early April. New requests stayed very low, resulting in a large drop in the share of loans in forbearance, particularly for Ginnie Mae loans, which also continue to be impacted by buyouts of delinquent loans. These loans are tracked as portfolio loans after a buyout.”
–Mike Fratantoni, MBA Senior Vice President and Chief Economist.
The Mortgage Bankers Association last week asked federal regulatory agencies to clarify how existing fair lending and the Equal Credit Opportunity Act adverse action notification requirements apply to Artificial Intelligence technologies.
The Consumer Financial Protection Bureau this week issued a report highlighting legal violations identified by the Bureau’s examinations in 2020.
The Mortgage Bankers Association urged the Senate Banking Committee to quickly approve Julia Gordon’s nomination as FHA Commissioner and forward her nomination for a full Senate vote.
On Tuesday the U.S. Supreme Court in, a 5-4 ruling, declined to lift the national Center for Disease Control and Prevention’s residential eviction moratorium. The ruling responds to a request to lift the D.C. Federal District Court’s stay, which has effectively paused its order invalidating the CDC moratorium.
Freddie Mac, McLean Va., said federal and local moratoria in response to the COVID-19 pandemic largely prevented an eviction crisis involving property renters—but the amount of back rent still owed is a “concerning factor” going forward.
“Artificial intelligence and related technologies, including machine learning have the potential to provide substantial benefits for participants in the mortgage lending industry and the consumers they serve. AI has particular potential in the area of credit underwriting where it can it be combined with alternative or non-traditional data to expand access to affordable (and sustainable) mortgage credit. Despite these benefits, broad adoption of AI has been slowed by uncertainty surrounding how AI fits within a regulatory framework that was largely created before its development.
–Pete Mills, MBA Senior Vice President of Residential Policy and Member Engagement.
Loans in forbearance fell for the 17th straight week–and for the second straight week, remained below 4 percent–the Mortgage Bankers Association reported Monday.
Ginnie Mae announced creation of a new pool type to support securitization of modified loans with terms up to 40 years.
The Consumer Financial Protection Bureau on Monday finalized amendments to federal mortgage servicing regulations in response to federal foreclosure moratoria phasing out later this summer.
