Numerous legislative proposals have gained support from industry
trade advocates representing mortgage lenders, community bankers and credit
unions.
Among these measures are bills to stop the implementation of
rules some believe would be harmful to consumers and the business community. Others
pertain to increasing homeownership options and preventing abusive practices.
Learn more about these bills, as well as some recent
developments in the mortgage market, below:
MBA reports 7.1 percent uptick in mortgage applications as
rates fall
The latest weekly mortgage applications survey from the Mortgage
Bankers Association (MBA) showed a 7.1 percent increase in applicants from one
week earlier, according to data from the week ending on March 8. That
percentage represents a seasonally-adjusted week-over-week calculation as part
of the Market Composite Index, which measures mortgage loan application volume.
The index rose 8 percent on an unadjusted basis, compared with the previous
week. The Refinance Index showed a 12 percent uptick and the Purchase Index jumped
5 percent, both on a seasonally adjusted basis.
“Mortgage rates dropped below 7 percent last week
for most loan types because of incoming economic data showing a weaker service
sector and a less robust job market, with an increase in the unemployment rate
and downward revisions to job growth in prior months,” MBA Chief Economist Mike
Fratantoni said in a statement. “Purchase application volume increased for the
week but remains about 11 percent below last year’s level. By contrast,
refinance volume picked up by 12 percent, with a larger,
24 percent increase in the government refinance index. While
these percentage increases are large, the level of refinance activity remains
quite low, and we expect that most of this activity reflects borrowers who took
out a loan at or near the peak of rates in the past two years.”
ABA joins 101 associations in opposing overtime proposal
The American Bankers Association (ABA) recently joined 101
national, state and local industry trade associations in expressing support for
H.R. 7367, the “Overtime Pay Flexibility Act,” which would prohibit the
Department of Labor from finalizing its proposed rule on employee overtime
regulations. The bill would increase the number of employees subject to the
Fair Labor Standards Act’s overtime and minimum wage requirements. The proposal
stipulates that employees earning up to $60,209 would be subject to federal
overtime and minimum wage requirements. Current regulations set the salary
level at $35,568 annually. Read the letter here.
CBA supports bill to stop interchange rule
A two-page fact sheet released by the Consumer Bankers
Association (CBA) details the trade group’s argument that the Federal
Reserve’s proposed rule on interchange fees would negatively impact millions of
consumers, pointing to evidence that the Durbin Amendment also caused consumer
harm. The fact sheet was released shortly after Rep. Blaine Luetkemeyer (R-Mo.)
introduced the Secure Payments Act, which would prevent the Fed from
advancing the proposed Regulation II rulemaking until its board further
researches its potential impacts on consumers. View the fact sheet here.
ACU urges Congress to help close gaps in homeownership
America’s Credit Unions (ACU) President and CEO Jim
Nussle wrote to the Senate Banking Committee ahead of its recent
hearing on housing affordability, urging legislators to enact legislative
measures to support the creation of financial products and services designed to
help more consumers, including in underserved areas, become homeowners.
“Credit unions have long had a history of rent-to-own
programs; first-time homeowner programs; financial literacy and wealth building
programs to assist millions of Americans on their path to financial well-being,”
Nussle wrote. “Data consistently shows that credit unions are at par or exceed
our for-profit counterparts in the financial services marketplace.”
Nussle noted his support for the bipartisan Homebuyers
Privacy Protection Act (S. 3502/H.R.7297), which is intended to curb the
abusive use of mortgage credit “triggers leads” in all but a limited set of
circumstances.