Servicing Newslinks Archive

“At a high level, the role of federal regulators with respect to credit scoring models should be to ensure such models exceed a minimum threshold of predictive capacity, while also remaining in compliance with fair lending requirements. If the CFPB or any other regulator was able to regularly change the weighting of various model inputs, or remove certain inputs altogether, the predictive capacity of the models could be seriously jeopardized. Such actions would then result in less sustainable mortgage lending, which would harm the very consumers that policymakers and market participants are attempting to better serve.” –MBA Senior Vice President Bill Killmer, in a letter to House Financial Services Committee leadership expressing concerns with provisions in the Clarity in Credit Score Formation Act of 2019.

“FHA can make changes to expand loan eligibility and encourage more servicer and investor participation.”–From an MBA/American Bankers Association letter to HUD outlining recommendations to improve its FHA Single-Family Loan Sale Program.

“The importance of the Terrorism Risk Insurance Act of 2002 and subsequent reauthorizations to the American economy is directly relevant to MBA’s membership. A long-term extension of TRIA is vital to the health of the commercial and multifamily real estate finance sector and the nation as a whole.”–MBA Senior Vice President of Legislative and Political Affairs Bill Killmer, in a letter to Senate Banking Committee leadership in support of reauthorization of the Terrorism Risk Insurance Act.

“Large banks appear to have great difficulty translating technological expertise and resources into efficient technology support for the mortgage origination business. Large banks’ IT projects appear to get mired in process considerations and take years to roll out, if they are rolled out at all. Clearly, this is an area that many of the largest banks should review.”–STRATMOR Principal Tom Finnegan, discussing results of the company’s collaboration with MBA’s Peer Group Roundtables.

“The lack of affordable housing is presenting significant challenges to families across the country. We need to explore how the lending community can better partner with public, private and non-profit stakeholders to ensure more Americans have access to homes they can afford.As the trade association representing the full breadth and depth of the mortgage lending community, MBA should, and will, be a leader in finding innovative solutions.”–MBA President and CEO Robert D. Broeksmit, CMB.

“Independent mortgage bankers experienced improvements in the first three months of the year. This was a welcoming sign following a very difficult end of 2018, in which profitability reached its lowest level since our survey’s inception in 2008.”–MBA Vice President of Industry Analysis Marina Walsh.

“It is time for Congress as a whole, to speak up and demand that their colleagues allow for the NFIP to be extended prior to a lapse. The millions of homeowners, renters, small businesses, builders, real estate and insurance agents, lenders and taxpayers deserve nothing less.”–From an MBA/trade group letter to House and Senate leadership urging Congress to approve a longer-term extension of the National Flood Insurance Program.

“Our ultimate goal is to be fair,” he said. “We’ll continue to hold lenders accountable…but we also want to encourage borrowers to look to FHA. We believe these adjustments will improve our risk management and better evaluate risk at the margin, so lenders can participate with more confidence.”–FHA Commissioner Brian Montgomery.

“The Mortgage Bankers Association continues to be fully focused on housing finance reform. We’re pursuing every angle and pushing regulators and lawmakers to build on the progress that has already been made. More than 10 years after the financial crisis, we still believe housing finance reform is achievable.”–MBA President & CEO Robert Broeksmit, CMB, speaking yesterday at the MBA National Secondary Market Conference & Expo in New York.

“It has become clear that our lending partners are seeking clarity and greater certainty when documenting compliance with FHA requirements. We are proposing a new, more transparent set of requirements that will preserve our enforcement authority. We anticipate that this will encourage more lender participation in FHA business, thus increasing competition in the market and resulting in greater choices for borrowers.”–Acting Deputy Secretary and FHA Commissioner Brian Montgomery, announcing new lender certification requirements for FHA.