News By Edition

At the National Settlement Services Summit (NS3) in Naples, Fla., former Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger spoke about her government career and the lessons she learned at the CFPB.

“The mission was the best part of the job, and the people who really cared about that mission,” Kraninger said.

Read on for more details.

At the National Settlement Services Summit (NS3) in Naples, Fla., National Closing Solutions Senior Vice President of National Accounts Chris Scott moderated a discussion between Rocket Mortgage Vice President of Business Development Tony Nuckolls and Movement Mortgage Area Branch Leader Christopher Kiblin.

The trio discussed how mortgage transactions have changed over the last couple of years and the impact of technology in the lending space.

Read on for more details.

Wolters Kluwer released its annual indicator survey, which gauges bankers’ sentiments on a variety of issues related to regulatory and risk management.

Timothy Burniston, Wolters Kluwer Compliance Solutions senior advisor of regulatory strategy, said although there was still a relatively high level of concern about compliance and risk management, many respondents also stated they were more confident about their organization’s ability to track regulatory changes and document compliance.

Read on for more details.

After a four-year vacancy, the Senate confirmed a new president of Ginnie Mae. The last leader of the organization was Ted Dozer, who left the role in 2017.

Prior to her confirmation, the new president served as senior advisor at the Department of Housing and Urban Development. The new Ginnie Mae president has had positions at several prominent organizations and companies in the housing industry.

Read on for more details.

Closepin, a data services provider for the mortgage industry, announced its rollout of a new API to assist lenders in reducing purchase loan turn-times.

The API provides instant access to over 65 validated and commonly requested data points from closing agents that can be integrated with any loan origination system, the company stated.

Read on for more details.

The Federal Housing Finance Agency (FHFA) issued a notice of proposed rulemaking (NPR) requiring Fannie Mae and Freddie Mac (the Enterprises) to develop, submit, and maintain annual capital plans to the agency.

The NPR is part of the FHFA’s commitment to ensure safety and soundness at the Enterprises.

Read on for more details.

The Federal Deposit Insurance Corp.’s Office of Supervisory Appeals is fully operational and will begin to decide appeals of material supervisory determinations.

The new office will enhance the independence of the agency’s supervisory appeals process and further its goal of ensuring consistency and accountability in the examination process.

For more details, read on.

In its mortgage metrics report for the third quarter of 2021, the Office of the Comptroller of the Currency revealed the performance of first-lien mortgages in the federal banking system improved.

These loans comprise 23 percent of all residential mortgage debt outstanding, an estimated 12.5 million loans totaling $2.59 trillion in principal balances.

Read on for more details. 

Fannie Mae’s fourth quarter 2021 Mortgage Lender Sentiment Survey showed most lenders expect the housing market to return to “normal” in the coming year.

More lenders this quarter also reported reduced consumer demand for both purchase and refinance mortgages. They expect purchase mortgages to remain stable in 2022, while refinance demand shrinks.

Read on for more details.

Black Knight’s Originations Market Monitor report for November 2021 showed origination activity slowed for the third consecutive month.

This brought originations volume down to its lowest level since February 2020.

Read on for more details.

ACES Quality Management’s quality control trends report for the second quarter of 2021 showed an increase in the overall defect rate, ending a multi-quarter trend of improvement.

Factors impacting this trend include the transition from a refinance market to a purchase one, eviction moratorium uncertainty, and rising inflation, according to ACES Executive Vice President Nick Volpe.

Read on for more details.

The National Credit Union Administration named its director of the Office of Business Administration as the new director of the Office of Examination and Insurance.

Her new duties will begin on Jan. 1, 2022.

Read on for more details.

President Joe Biden announced his intent to nominate Sandra Thompson as the new lead for the Federal Housing Finance Agency (FHFA).

Thompson has been serving as the acting director for the agency since June 2021. Prior to that, she was the deputy director of FHFA’s Division of Housing Mission and Goals.

Read on for more details.

The Consumer Financial Protection Bureau (CFPB) released its supervisory highlights for the first half of 2021. The report identifies legal violations and public enforcements actions taken by the bureau.

“Today’s report reveals that irresponsible or mismanaged firms harmed Americans during the COVID-19 pandemic,” CFPB Director Rohit Chopra said. “We will continue to supervise firms to halt harmful practices before they become widespread.”

Read on for more details.

The Office of the Comptroller of the Currency (OCC) appointed a chief of staff for acting Comptroller Michael Hsu.

In her new role, she will advance Hsu’s priorities, direct the daily operations of supporting staff, and serve as a member of the OCC Executive Committee.

The new chief of staff joined the OCC in July.

Read on for more details.

In the fourth installment of October Research, LLC’s economic forecast series, Mortgage Bankers Association Chief Economist and Senior Vice President of Research and Industry Technology Michael Fratantoni shared his views on mortgage rates, housing trends, and lenders performance and expectations.

This 30-minute, complimentary webinar sponsored by SoftPro is now available for download.

Read on for more details.

The Mortgage Bankers Association’s (MBA) mortgage credit availability index revealed lending standards are tightening.

“Credit availability in November was down slightly, even as the housing market continues to thrive amidst the improving job market,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said. “However, the picture was different depending on the market segment.”

To learn what Kan is referring to, read on. 

MISMO is seeking public comment related to the sharing of commercial financial operating statement data.

The organization said its proposed standard will make the exchange of such information more accurate and efficient.

Read on for more details. 

After a contentious Senate hearing and pushback from both parties, Saule Omarova, President Joe Biden’s nomination to lead the Office of the Comptroller of the Currency, withdrew from consideration.

“I deeply value President Biden’s trust in my abilities and remain firmly committed to the administration’s vision of a prosperous, inclusive, and just future for our country,” Omarova wrote in her withdrawal letter. “At this point in the process, however, it is no longer tenable for me to continue as a presidential nominee.”

Read on for more details.

Fannie Mae’s November Home Purchase Sentiment Index showed consumer sentiment toward homebuying and home selling has remained relatively flat month-over-month. Compared with the same time last year, the index is down 5.3 points.

Consumers expressed pessimistic views relating to the economy, with a record-setting majority saying it is on “the wrong track.”

For details from the survey, read on. 

Fannie Mae has appointed an executive vice president and chief financial officer (CFO), as well as a senior vice president and controller.

The new CFO will be responsible for the company’s financial management and economic and strategic research functions, while the new controller will be the principal accounting officer.

Read on for more details.

The Mortgage Bankers Association’s (MBA) 2021 third quarter report on commercial/multifamily delinquencies showed a decline in these rates for every major capital source since the onset of the pandemic.

“Despite successive waves of COVID-19, the economy has shown solid growth, and it is hard to imagine a return to the extraordinary shutdowns in early 2020 that negatively impacted some sectors of commercial real estate,” MBA Vice President of Commercial Real Estate Research Jamie Woodwell said.

Read on for more details.

OpenClose has launched its native mobile app platform Mobile Assist.

The company said the new tool adds features and functionality to help originators be more successful with a real-time omnichannel device platform.

Read on for more details. 

The Mortgage Bankers Association’s Research Institute for Housing America found renters were more likely to miss, delay, or make reduced housing payments in September and October 2021 than homeowners.

The difference is attributed to the expiration of government support programs, inflationary pressures, and rising COVID-19 cases.

Read on for more details.

The Consumer Financial Protection Bureau has issued a final rule to facilitate the industry’s transition away from the LIBOR interest rate index. It will be effective April 1, 2022.

The discontinuation of LIBOR is in relation to a criminal rate-setting conspiracy implicating large international banks, undermining the public’s confidence in the index.

For more details about the rule, read on.

The Federal Housing Finance Agency (FHFA) released its performance and accountability report for 2021.

The report covers the agency’s activities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac during this year. The FHFA also reported the Government Accountability Office’s unmodified audit opinion.

For details from the report, read on.

The Consumer Bankers Association and American Bankers Association penned a letter to the Consumer Financial Protection Bureau, urging it to protect consumers in a rapidly evolving marketplace.

The letter is in response to the bureau’s notice and request for comment regarding big tech payment platforms and its inquiry sent to Amazon, Apple, Facebook, Google, PayPal, and Square for information on their business practices.

Read on for more details.

Mortgage Coach has integrated with ICE Mortgage Technology to enable lenders to deliver accurate loan comparisons to borrowers through Encompass and its Total Cost Analysis platform.

Mortgage Coach is the inaugural “borrower conversion” solution available through the ICE Mortgage Technology Marketplace, the company stated in a release.

Read on for more details.

Deloitte Technology Fast 500 has ranked Sales Boomerang on its list of the 500 fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America.

The company’s CEO Alex Kutsishin credits the company’s revenue growth to an ever-expanding line of automated alerts to help lenders better understand and anticipate the needs of their clients and Sales Boomerang’s company culture.

Read on for more details.

The U.S. Government Accountability Office (GAO) released its audit for Consumer Financial Protection Bureau’s fiscal years 2020 and 2021.

The GAO issues an annual audit and opinion on the bureau’s financial statements and on related internal controls.

For more details, read on.

President Joe Biden nominated Jerome Powell for a second term as chair of the board of governors of the Federal Reserve System. He also nominated Lael Brainard to serve as vice chair.

Powell initially took office as chairman in February 2018 with a four-year term ending in February 2022. Should he be confirmed for a second term, his tenure will be extended to Jan. 31, 2028.

For industry reactions, read on.

Rep. Jesús García (D-Ill.) and 16 other representatives introduced HR 5974, a bill to amend the Truth in Lending Act to extend consumer credit protections provided to members of the armed forces and their dependents to all consumers.

“This bipartisan bill expands the time-tested protections of the Military Lending Act to veterans, military families, and other consumers. Congress should act with haste to advance it to protect families from this unpayable debt,” García said.

For more details on the legislation, read on.

The Federal Deposit Insurance Corp.’s (FDIC) quarterly banking profile for the third quarter of 2021 showed America’s banks were fundamentally sound.

Reports came from 4,914 commercial banks and savings institutions insured by the FDIC and reflected an aggregate net income of $69.5 billion during the relevant time period, an increase from the same quarter the year before.

For more details and industry reactions, read on.

The Mortgage Bankers Association’s Quarterly Mortgage Bankers Performance Report showed independent mortgage banks and mortgage subsidiaries of chartered banks saw an increase in production profits during the third quarter of 2021.

Combining production and servicing operations, 92 percent of firms posted overall profitability during this quarter, compared with 84 percent in the second quarter of 2021, the association stated.

Read on for more details.

MISMO is seeking participants for its new workgroup tasked with creating a standard format for the exchange of bid-wanted in competition data.

The standards organization stated this will facilitate accuracy, liquidity, and rapid pricing for agency mortgage-backed securities transactions.

Read on for more details.  

The Consumer Financial Protection Bureau has made its Truth in Lending (Regulation Z) annual threshold adjustments.

These have been published in the Federal Register and will go into effect Jan. 1, 2022.

Read on for more details.

The Small Business Administrations’ Office of Advocacy, the Independent Community Bankers of America, the American Bankers Association, and state banking associations have requested the Consumer Financial Protection Bureau extend the comment deadline for the proposed rule implementing Section 1071 of the Dodd-Frank Act.

The proposed rule outlines the requirements for lenders disclosing information about their lending to small businesses, such as the amount and type of small-business credit applied for and extended, demographic information about small-business credit applicants, and key elements of the price of the credit offered.

For more details about the request, read on. 

The Office of the Comptroller of the Currency issued an interpretive letter clarifying the authority of banks to engage in certain cryptocurrency activities and the agency’s authority to charter a national trust bank.

“Today’s letter reaffirms the primacy of safety and soundness,” acting Comptroller Michael Hsu said. “Providing this clarity will help ensure that these cryptocurrency, distributed ledger, and stablecoin activities will be conducted by national banks and federal savings associations in a safe and sound manner.”

Read on for more details.

The Federal Housing Finance Agency announced the conforming loan limits for 2022.

These limits are the highest loan amount that can be acquired by Fannie Mae or Freddie Mac and are adjusted each year to reflect the change in the average home price in the U.S.

For details on the conforming loan limits, read on.

The Federal Housing Finance Agency released the deemed-issuance ratio for 2022 for Fannie Mae and Freddie Mac.

The ratio was set in accordance with Internal Revenue Service guidelines regarding uniform mortgage-backed securities trading.

Read on for more details.

The Mortgage Bankers Association announced 19 members for the 2022 Affordable Rental Housing Advisory Council.

The council provides important recommendations, feedback, and ideas on what the association should do to assist in advancing affordable homeownership initiatives and closing the racial homeownership gap.

Read on for more details.

In a letter to Sen. Pat Toomey (R-Pa.), the National Credit Union Administration requested enhancements made to the central liquidity facility by the Coronavirus Aid, Relief, and Economic Security Act be made permanent.

Unless Congress acts, these changes will expire on Dec. 31, 2021.

Read on for more details.