News By Edition

Zaid Shariff, vice president and head of solution design and product implementation at SLK Global Solutions, spoke with Dodd Frank Update about non-qualified mortgage loans and the current challenges within that market.

Non-QM loans had a small market share before the pandemic and was on the rise prior to March 2020. However, when COVID-19 hit, the non-QM market crashed, Shariff said.

Read on for more details.

Saule Omarova, President Joe Biden’s nominee to lead the Office of the Comptroller of the Currency, faced a challenging hearing before the Senate Committee on Banking, Housing, and Urban Affairs.

Community banks’ opposition to her nomination took center stage during Omarova’s testimony and questions, according to the Independent Community Bankers of America (ICBA). Its joint letter of opposition, along with 60 others, was entered into the record.

Read on for more details.

Fannie Mae’s Economic and Strategic Research (ESR) Group stated inflation is a key forecast concern in its November 2021 commentary.

The ESR group also published its expectations for 2023 real GDP for the first time, forecasting growth that is in line with the pre-pandemic domestic growth trend.

For more information from the report, read on. 

Freddie Mac’s Single-Family business’ Credit Risk Transfer (CRT) reported year-to-date CRT issuances that protected $585.5 billion in unpaid principal balance of single-family mortgages.

“At the end of the third quarter 2021, Freddie Mac maintained its position as the leading programmatic issuer of single-family CRT,” Freddie Mac’s Mike Reynolds, vice president of single-family CRT, said.

Read on for more details. 

Mortgage Coach has integrated with First American Title Insurance Co. to enable lenders to incorporate title fees into custom total cost analysis presentations.

This feature will provide consumers with greater insight into their closing costs.

Read on for more details.

The Mortgage Bankers Association recently announced a vice president (VP) of member relations and a VP of commercial and multifamily policy.

In these roles, the new VPs will lead all residential member recruitment and member relations efforts, and lead advocacy efforts on policy issues impacting MBA’s commercial real estate finance members.

Read on for more details. 

The Federal Trade Commission made five new appointments to agency leadership positions in its Office of Policy Planning.

These additions will work with the agency’s chief technology officer and technologists as part of an informal AI strategy group and in partnership with policy experts to provide insight and advice on emergency technology issues.

For more details, read on. 

The Federal Housing Finance Agency has released the 2022 scorecards for Fannie Mae, Freddie Mac (the Enterprises), and Common Securitization Solutions, LLC (CSS).

The scorecards are designed to hold the Enterprises and CSS accountable for achieving their core mission requirements, promoting sustainable and equitable access to affordable housing, and operating in a safe and sound manner.

Read on for more details.

In an editorial building off a Consumer Bankers Association (CBA) white paper, CBA President and CEO Richard Hunt asked Consumer Financial Protection Bureau Director Rohit Chopra to establish clear and transparent “rules of the road” rather than regulating by enforcement.

“In the past, the bureau has used its authority to sidestep the formal rulemaking process by announcing new regulatory standards through enforcement actions instead of issuing rules or guidance,” Hunt wrote. “But rarely, if ever, is it in the best interest of the consumers America’s leading banks are working to serve.”

Read on for more details.

Acting Comptroller of the Currency Michael Hsu addressed modernizing the financial regulatory perimeter during remarks he delivered at the Federal Reserve Bank of Philadelphia’s fifth annual fintech conference.

Hsu said changes to the regulatory perimeter, normally driven by crises and failures, should instead be proactive to keep up with the pace of innovation.

Read on for more details. 

Mid America Mortgage has hired a national sales manager in its reverse mortgage division.

The new manager will be responsible for recruiting top-tier loan officers to join Mid America.

Read on for more details.

ReverseVision, a national provider of home equity conversion mortgages, private reverse sales, and origination technology, welcomed a new vice president of finance and a new systems administrator.

The two positions will play key roles in optimizing internal functions and prepping the company to scale.

Read on for more details.

ICE Mortgage Technology has welcomed an experienced leader as its vice president, head of executive accounts.

He will manage an enterprise team of account executives and relationship managers responsible for providing digital mortgage technology to lenders nationwide.

Read on for more details.

The Consumer Financial Protection Bureau issued a request for information on detecting discrimination in mortgage lending.

The bureau intends to review the 2015 changes to the rules implementing the Home Mortgage Disclosure Act and evaluate their effectiveness. The CFPB will then publish an assessment report on its findings by Jan 1, 2023.

Read on for more details.

The National Association of Federally-Insured Credit Unions supports a bill that will, according to the organization, “modernize the Federal Credit Union Act’s provisions related to member expulsion in order to keep credit unions, their members, and staff safe from illicit behavior.”

The bill was advanced by the House Financial Services Committee to the full House for consideration.

Read on for more details.

Stavvy and Flagstar Bank have partnered on a project where Flagstar is leveraging Stavvy’s platform to better execute digital loan servicing transactions.

With this integration, Flagstar said it is well-positioned to handle the increased volume expected as COVID-19 relief programs end.

Read on for more details. 

Promontory MortgagePath LLC’s endorsement from the American Bankers Association (ABA) has been renewed.

The ABA’s endorsement dates to 2018 and recognizes the financial technology company’s fulfillment solutions that assist members in reducing mortgage origination costs while allowing them to retain a full mortgage product suite.

Read on for more details.

The Mortgage Bankers Association’s builder application survey showed mortgage applications decreased in October 2021 compared with last year.

Compared with September 2021, applications increased.

Read on for more details.

In a joint statement, the Federal Reserve, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corp., the National Credit Union Administration, the Office of the Comptroller of the Currency, and state financial regulators announced they will resume supervision and enforcement actions under Regulation X mortgage servicing rules.

This statement replaces the one made in April 2020, where the same agencies suspended actions against mortgage servicers for failing to meet certain timing requirements.

Read on for more details.

National Credit Union Administration Chair Todd Harper spoke at the African American Credit Union Coalition’s Town Hall.

During his remarks, Harper addressed the U.S. economic situation and near-term outlook. He gave guidance on working with borrowers, supporting small, low-income and MDI credit unions, combating appraisal bias, and addressing financial education and literacy for consumers.

Read on for more details. 

Promontory MortgagePath, LLC has promoted a managing director who has been with the company since 2015 to chief information officer (CIO).

“He brings an executive-level engineering and information technology focus to the important CIO position,” Promontory MortgagePath founder and CEO Gene Ludwig, said. “He will help us continue to grow and constantly improve upon our technology so we can exceed our clients’ expectations.”

Read on for more details.

ClearPath Lending, a leading U.S Department of Veterans Affairs home loan originations firm, thanked the millions of people who have served the country in celebration of Veterans Day.

The company also called on the industry to do more for veterans.

Read on for more details.

John Marshall Bank expanded its commercial lending team by hiring a new senior vice president, commercial lender, with 39 years of experience in commercial banking.

Andy Peden, John Marshall Bank’s chief lending officer, said this new addition to the team will serve a key role in sharing leadership, management, and commercial lending expertise with the team.

Read on for more details. 

The Mortgage Bankers Association’s mortgage credit availability index revealed a slight month-over-month increase in mortgage credit availability.

However, when compared to February 2020, the overall index was 30 percent lower, and close to the lowest supply of mortgage credit since 2014.

Read on for more details.

Michael Hsu, Office of the Comptroller of Currency’s (OCC) acting comptroller, addressed the risk climate change poses to banks.

During his remarks at OCC headquarters, Hsu announced the OCC will be issuing high level framework guidance for large banks on climate risk management by the end of this year.

“These words are extremely important. Bank action is even more so,” Hsu said.

Read on for more details.

Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw wrote about decentralized finance in an article published in The International Journal of Blockchain Law.

Crenshaw discussed the similarities between DeFi offerings and products and those in the traditional financial marketplace, the potential issues with unregulated markets, the SEC’s role in regulating DeFi, and the structural problems with DeFi that need to be addressed.

Read on for more details.

The Federal Housing Finance Agency has issued the annual performance plan for 2022 that supports the agency’s strategic plan for fiscal years 2021-2024.

The plan sets out performance measures and targets in support of the goals outlined in the strategic plan, and has four components: strategic goals, strategic objectives, performance measures and associated targets, and means and strategies to accomplish the performance goals.

For details from the performance plan, read on.

The Mortgage Collaborative’s (TMC) TMC Emerging Technology Fund LP will host a TMC Mortgage Tech Day in Spring 2022.

The event provides the opportunity for financial technology and mortgage technology companies to present to a live audience of TMC’s Emerging Tech Fund limited partners.

Read on for more details.

Pretium, a specialized investment manager firm, has acquired Anchor Loans, LP, the nation’s leading provider of financing to residential real estate investors and entrepreneurs.

This move will further Pretium’s mission to provide solutions for the U.S. housing market through a diversified platform and meet growing residential real estate needs by providing loans to upgrade aging homes.

Read on for more details. 

The Mortgage Bankers Association’s quarterly survey of commercial/multifamily mortgage bankers originations showed borrowing in this space increased dramatically in the third quarter of 2021.

All property types showed an increase during this period compared with the third quarter of 2020.

Read on for more details.

The President’s Working Group on Financial Markets, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency issued a report on stablecoins, related activities, and the risk posed to the economy and consumers.

The report concluded with recommendations for Congress to preserve market integrity, investor protection, and avoid illicit finance concerns.

Read on for more details.

The Federal Housing Finance Agency released its annual housing report examining the achievements and goals met by Fannie Mae and Freddie Mac (the Enterprises).

The report covers the affordable housing activities undertaken by the Enterprises between Jan. 2020 and Dec. 2020.

For more details on whether the Enterprises met their goals, read on.

The Federal Housing Finance Agency’s Office of Fair Lending Oversight and Office of Economic Research published a report looking into the reasons behind the decrease in housing production and subsequent lack of housing options.

“One reason for this production shortfall has been the spread of strict land use controls, including minimum lot sizes and zoning that permits only single-family housing to be built,” the research note stated.

Read on for more details.

New American Funding has partnered with CBC Mortgage Agency to expand the offering of the latter’s Chenoa Fund Down Payment Assistance Program to improve access to affordable homeownership.

“We are thrilled about the partnership with New American Funding and the opportunity to expand homeownership to underserved communities,” CBC Mortgage Director of Government Affairs Tai Christensen said.

Read on for more details.

FormFree announced AccountChek, its financial data verification service, has been integrated into OpenClose’s Consumer Assist Enterprise point-of-sale and LenderAssist loan origination service.

The partnership will give borrowers the ability to electronically permission verification data easily when applying for a mortgage loan.

Read on for more details.

The Federal Deposit Insurance Corp. has created an Office of Minority and Community Development Banking.

The new department will support the agency’s engagement with minority depository institutions, community development financial institution banks, and other mission-driven banks.

Read on for more details.

Sen. Tim Scott (R-S.C.) introduced S. 3056, which would prohibit the Internal Revenue Service from requiring banks and other financial institutions to report certain bank account information, including private bank deposits or withdrawal activity, for tax enforcement purposes.

The bill comes in the wake of the American Families Plan, which proposes banks supply additional information for certain businesses and personal accounts over a de minimis threshold in Form 1099-INT reports.

Read on for more details.

Two weeks after being sworn in as the director of the Consumer Financial Protection Bureau, Rohit Chopra testified before the House Committee on Financial Services.

During his testimony, Chopra spoke about the current economic conditions, market monitoring, and the steps the bureau intends to take under his leadership.

Read on for more details. 

The Federal Housing and Finance Agency (FHFA) has appointed its acting chief operating officer to hold the position permanently, the agency announced.

Additionally, the FHFA has appointed two others to senior advisor for legal affairs and policy and deputy director for the division of research and statistics.

For more details on these individuals, read on. 

From Nov. 1 to Nov. 5, 2021, the Mortgage Bankers Association’s Mortgage Action Alliance (MAA) has its action week, a national, industry-wide campaign to help real estate finance professionals learn how to become more engaged in political advocacy supporting the industry.

MAA currently has 70,000 members and represents a broad range of industry professionals ready to act on key issues.

Read on for more details.

Refinances during the COVID-19 pandemic was a significant economic stimulus, providing a savings aggregate of $1.3 billion per month, according to Black Knight, Inc.’s most recent Mortgage Monitor report.

While rate increases have resulted in a shift away from rate/term refinance lending to cash-outs, the report shows there is still a pool of high-quality refi candidates larger than at any time prior to 2020.

Read on for more details.

The Consumer Financial Protection Bureau has appointed an assistant director of the Office of Supervision Policy and an assistant director for the Office of Enforcement.

Most recently, one candidate worked as commissioner of the New York City Department of Consumer and Worker Protection, and the other was the CEO of Civil Rights Corps.

Read on for more details.

The Office of the Comptroller of the Currency (OCC) has released its bank supervision operating plan for 2022.

Next year’s strategies focus on credit risk management, allowances for loan and lease losses, and allowances for credit losses; cybersecurity and operational resilience; oversight of third parties and related concentrations; and more.

To learn what other topics the OCC will address in the coming year, read on.

In an effort to support sustainable housing, Fannie Mae issued a letter to all of its single-family sellers on temporary requirements of condo and co-op projects.

The letter was issued after the condo building collapse in Surfside, Fla., left 98 dead and 136 homes lost. It is meant to address increasing concerns about significant deferred maintenance of aging condo and co-op infrastructure.

Read on for more details.

The Federal Housing Finance Administration has issued a notice of proposed rulemaking on the Enterprise regulatory capital framework (ERCF) for Fannie Mae and Freddie Mac (the Enterprises).

The proposed rule would implement additional public disclosure requirements for the Enterprises related to regulatory capital instruments, risk-weighted assets calculated under the ERCF’s standardized approach, and risk management policies and procedures.

Read on for more details.

Button Finance, a financial technology mortgage lender focused on home equity loans, has closed a $2 million seed raise.

The amount will help the company hire talent and further develop its proprietary technology.

Read on for more details.

The Mortgage Bankers Association’s Builder Application Survey showed mortgage applications for new home purchases decreased in September 2021.

“New home sales purchase activity was weaker in September, and the average loan size rose to another record high, as homebuilders continue to grapple with rising building materials costs and labor shortages,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said.

Read on for more details.

The Federal Housing Finance Agency’s House Price Index for August showed an increase both month-over-month and year-over-year.

The previously reported price change for July 2021 was unchanged.

Read on for more details.