The
mortgage marketplace is a vast and ever-changing sector of the nation’s
economy, which encompasses banks and credit unions of all sizes, as well as
government-sponsored enterprises and a growing number of fintech companies.
Below
are a handful of topics and news items recently touched upon by various trade
organizations active within the mortgage space:
MBA
reports November drop in available mortgage credit
Mortgage
credit availability decreased by 1.7
percent to 96.5 in November, according to the Mortgage Bankers
Association’s (MBA) Mortgage Credit Availability Index (MCAI). According to the
trade group’s analysis, a decline in the MCAI indicates a tightening in lending
standards, whereas an increase would suggest a loosening of credit standards.
Read more about the latest report’s findings here.
ICBA comments on AI in lending
The
Independent Community Bankers of America (ICBA) recently published a comment
letter responding to the Biden-Harris administration’s latest directive addressing how federal agencies
should approach artificial intelligence (AI) from a regulatory standpoint. In a
letter to the Office of Management and Budget (OMB), ICBA argued AI could be
beneficial to lending institutions by alleviating data reporting burdens,
provided its use is based on agreed-upon public-private standards to protect
community banks and their customers. Read the full comment letter here.
CBA
asserts factual issues with CARD Act data cited by CFPB
The
Consumer Bankers Association (CBA) released the third installment of its “Facts
Matter” blog series asserting discrepancies in data cited by the Consumer
Financial Protection Bureau (CFPB) concerning the prevalence of challenges
faced by consumers with credit card debt. Specifically, CBA pointed to the
CFPB’s sixth report required by the Credit
Card Accountability Responsibility and Disclosure Act (CARD) in
which the bureau claimed more consumers are carrying balances month to
month, with many falling deeper into debt over time. However, CBA argued
the CARD Act report actually suggests more
consumers are paying their credit card balances off each month than in previous
years. Read more of CBA’s argument here.
CSBS is under new leadership
The
Conference of State Bank Supervisors (CSBS) recently announced the appointment
of Brandon Milhorn, a senior official at the Federal Deposit Insurance Corp.
(FDIC), as the trade group’s new president and CEO. Milhorn will succeed James
Cooper, who has led the CSBS since June 2022. Milhorn currently serves as
deputy to FDIC Vice Chairman Travis Hill and previously chief operating
officer, chief of staff and deputy to FDIC Chairman Jelena McWilliams. Milhorn
brings nearly three decades of advocacy, policy, legal and regulatory
experience to the CSBS. Read more about this appointment here.