While a long-anticipated interest rate cut remains a topic of speculation, a recent drop in mortgage rates produced a notable spike in mortgage applications, according to the Mortgage Bankers Association’s (MBA). Learn more about this development and more topics trade organizations are buzzing about in this roundup:
MBA reports uptick in mortgage applications as rates decline
Mortgage applications rose 6.9 percent the week of Aug. 2 as mortgage rates decreased across the board, according to the MBA‘s weekly applications survey. The seasonally-adjusted uptick in application volume marked the highest level since January as the 30-year fixed rate dropped to 6.55 percent, its lowest point since May 2023, according to MBA’s Market Composite Index. On an unadjusted basis, the index increased 6 percent compared with the previous week. The refinance index jumped up 16 percent from the week prior and was 59 percent higher than the same week one year ago. The seasonally adjusted purchase index increased 1 percent from one week earlier. On an unadjusted basis, the purchase index ticked up 0.3 percent and was 11 percent lower than the same week one year ago. Learn more here.
CBA launches website to fact-check CFPB rulemakings, statements
Continuing the organization’s efforts to highlight questionable data published by the Consumer Financial Protection Bureau (CFPB), the Consumer Bankers Association (CBA) announced the launch of a new website focused on fact-checking the bureau.
“Over the last several years, it’s become apparent the CFPB has politicized financial regulatory policies to the detriment of the American consumer,” CBA President and CEO Lindsey Johnson said in a statement. “The bureau has an obligation to develop policy based on objective facts and data, not electoral politics. CBA and our members strongly believe in the important role of the CFPB, while also recognizing these continued actions may harm the reputation and legitimacy of the bureau for years to come. Now more than ever, it’s imperative that ideology not play a role in ensuring the financial well-being of the millions of Americans who rely on essential banking services each and every day.”
The site outlines specific examples of policies released by the CFPB over the last year citing data that runs contrary to information gathered by CBA, as well as conclusions the trade association contends to be false, based on its research and findings. Learn more about the fact-checking site here.
Trades argue CFPB failed to follow APA with BNPL rulemaking
The Bank Policy Institute and the CBA submitted a letter to the CFPB calling on the agency to abide by the Administrative Procedure Act (APA) as it seeks to regulate buy-now-pay-later (BNPL) providers. The trade groups argued the CFPB’s interpretive rule on BNPL providers violates the APA, based on its substantive nature. The associations made it clear their objections are not regarding the bureau’s interpretation of the law as it applies to BNPL offerings, but rather CFPB’s decision to circumvent the formal rulemaking process. The trades urged the bureau to rescind the interpretive rule and reintroduce it in accordance with APA requirements to give the public the proper ability to provide comments. Read more about this matter here.
ICBA objects to FCC using Weiss Ratings for certain programs
The Independent Community Bankers of America (ICBA) submitted a comment letter to the Federal Communications Commission (FCC) on a proposal that would require banks to have a Weiss Ratings of B-minus or better to qualify for certain programs. This stipulation would apply to programs community banks commonly utilize, such as the FCC’s rural digital opportunity fund. A Weiss Bank Rating is calculated based on five indexes: capitalization, asset quality, profitability, liquidity and stability. ICBA’s comment letter was endorsed by more than 70 state banking associations, opposing the Weiss Rating requirement, asserting that the ratings: are not sufficiently rigorous or transparent; have questionable impartiality, given the number of anti-government, anti-bank, and pro-cryptocurrency messages on the Weiss Ratings website; and an unregulated cryptocurrency received an A-minus rating from Weiss while thousands of regulated financial institutions have a safety rating below a B-minus. Learn more about the trade group’s opposition here.