Servicing Newslinks Archive

“While the delinquency numbers continue to drop–under 1.5 million in September–we are still very focused on markets where recovery has been slower and still need assistance.”–HOPE NOW Executive Director Eric Selk.

“An important subtext to this report is the continued volatility in the HECM book of business, which this year turned negative, dragging down the overall value of the MMIF. Given the importance of FHA to low and moderate income and first time homebuyers, the next administration may want to look at accounting for the two programs individually in order to isolate the critically important forward book from the wild swings of the HECM fund.”–MBA President and CEO David Stevens, CMB, on HUD’s annual report on the health of the FHA Mutual Mortgage Insurance fund.

“Mortgage delinquency and foreclosure rates continued to decrease in the third quarter as sustained job growth and low unemployment helped more borrowers stay current with their mortgage payments.”–MBA Vice President of Industry Analysis Marina Walsh.

“Right now, it takes 20 percent of the median monthly income to cover monthly payments on the median-priced home, which is well below historical norms. A 50 BPS increase in interest rates would be equivalent to a $17,000 jump in the average home price, and bring that ratio to 21.5 percent.”
–Black Knight Data & Analytics Vice President Ben Graboske.

“At this point last year, many of you were experiencing real and legitimate growing pains around the new rule. But we have continued to work closely with the Mortgage Bankers Association and other stakeholders to smooth the implementation process. We have clarified and addressed many issues over the past year, and we have been working with investors, due diligence firms and the rating agencies to help make sure that any minor or technical errors made on the forms do not pose unnecessary obstacles to purchasing the loans.”–Consumer Financial Protection Bureau Director Richard Cordray, speaking at the recent MBA Annual Convention & Expo.

“The housing market continues to normalize and move towards pre-crisis levels. We are extremely pleased to see the industry remain committed to preserving homeownership and helping homeowners avoid foreclosure.” –Eric Selk, executive director of HOPE NOW

“We recognize that the CFPB does important work to protect consumers and that this case is far from settled and expect the government to continue to litigate it. We will continue to fight on behalf of our members, particularly on the RESPA and due process issues, as they go to the heart of a core argument that MBA has been making for several years now–that lenders need clear, consistent and reasonable interpretations of the rules in order to be able to best serve their borrowers and contribute to a smoothly functioning real estate market.”–Mortgage Bankers Association President and CEO David Stevens, CMB, on a U.S. Appeals Court decision ruling the Consumer Financial Protection Bureau’s current leadership structure as “unconstitutional.”

“People used to consider paying off their mortgage as the top priority when managing their debt. However, credit cards are increasingly being thought of as the new top priority and because of this, over-purchased consumers are more willing to walk away from their house now than they were in previous years.”–Mark Damon, senior vice president of AutoPilot services with SWBC, San Antonio, Texas.

“On one hand the government tells us not to lend outside a very prescriptive box,” he said. “On the other hand, lenders are chastised for being too selective. This regulatory confusion significantly increases litigation risk. Through your risk management efforts, you balance these mandates, which are crucial to the health and longevity of our businesses and our industry.”–MBA Vice Chair J. David Motley, CMB.

“MBA’s task force recognizes that the industry, borrowers and investors need a successor to HAMP that is consistent and can be widely scaled. Application of the Task Force’s principles and the ‘One Modification’ or ‘One Mod’ will go a long way towards offering deep payment relief for struggling homeowners and a positive economic outcome for investors.”
–Pete Mills, Senior Vice President of Residential Policy and Member Services with the Mortgage Bankers Association.