CFPB ends pandemic relief on HMDA, where the most overleveraged borrowers live, 2021’s best fintechs and more top news
April 2, 2021 5:00 AM
CFPB ends pandemic relief on HMDA reporting and other regulations
The Consumer Financial Protection Bureau is rescinding seven policy statements issued last year under the Trump administration that gave flexibility to financial institutions dealing with fallout from the coronavirus pandemic.
The agency said effective April 1 it would undo relief from resolvingcredit card billing disputes, flexibility on exams and enforcement, and a reprieve from submitting loan data under the Home Mortgage Disclosure Act, among other policies.
Read the full storyhere.
The agency said effective April 1 it would undo relief from resolving
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Distressed borrower communication rules on track for now: CFPB
Consumer Financial Protection Bureau Acting Director David Uejio has said that he would explore the possibility of preserving the status quo regarding two pending Fair Debt Collection Practices Act rules, but a report released Monday indicated that the CFPB is instead proceeding with the implementation of the new rules.
Both final rules are scheduled to take effect on Nov. 30, 2021 according to the CFPB’s annual report to congress on the FDCPA.
The new FDCPA rule could help third-party mortgage servicing entities use some new safe harbors for compliance, according to some industry attorneys.
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Both final rules are scheduled to take effect on Nov. 30, 2021 according to the CFPB’s annual report to congress on the FDCPA.
The new FDCPA rule could help third-party mortgage servicing entities use some new safe harbors for compliance, according to some industry attorneys.
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Biden still likely to cut FHA premiums in the future, analysts say
A reduction in the Federal Housing Administration mortgage insurance premium is still more likely than not to occur at some point during the next four years, a report from BTIG said.
The Biden administration wasexpected to revive the 25 basis point cut in the FHA premium proposed at the end of the Obama administration. But, citing rising delinquency rates and the pandemic, new Department of Housing and Urban Development Secretary Marcia Fudge put the kibosh on such a move for now.
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The Biden administration was
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All-cash bids, waiving financing top strategies to win bidding wars
Consumers who need to get a mortgage might be losing out to those able to make an all-cash offer in a bidding war, a Redfin report found.
But mortgage lenders could end up on the short-end of the equation,losing business or taking on more risk, if bidders use this and other apparently successful strategies.
Being able to pay the purchase price entirely in cash increased the likelihood of the offer being accepted by 290%, according to a Redfin analysis of offers written by its agents for clients between July 2020 and February.
Read the full storyhere.
But mortgage lenders could end up on the short-end of the equation,
Being able to pay the purchase price entirely in cash increased the likelihood of the offer being accepted by 290%, according to a Redfin analysis of offers written by its agents for clients between July 2020 and February.
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These cities have the most overleveraged mortgage holders in the U.S.
Willis, Texas has the most overleveraged mortgage borrowers in the country, according to a study of 2,530 cities conducted by WalletHub.
Overleveraged borrowers aremore likely to default on their mortgage if they have any financial shocks like a loss of income.
"If you can comfortably afford the payments, then a very high loan-to-value ratio is probably fine," said Jonathan Halket, an assistant professor at Texas A&M University in a blog accompanying the report. "Relying onhouse price growth to accrue equity is a mistake."
Read the full storyhere.
Overleveraged borrowers are
"If you can comfortably afford the payments, then a very high loan-to-value ratio is probably fine," said Jonathan Halket, an assistant professor at Texas A&M University in a blog accompanying the report. "Relying on
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Deferrals outpace forbearance as foreclosure prevention method at GSEs
Almost a year ago, the passing of the CARES Act made postponing payments the dominant form of foreclosure prevention used by the government-sponsored enterprises, but a new analysis from the Federal Housing Finance Agency shows that’s changed.
Fourth-quarter numbers released in the foreclosure prevention report show forbearance, at 44%, is giving way to payment deferrals, at 51%, as the main type of foreclosure prevention the GSEs are using. Deferralsintroduced in 2020 allow consumers to simply tack missed payments on to the end of their loan.
Read the full storyhere.
Fourth-quarter numbers released in the foreclosure prevention report show forbearance, at 44%, is giving way to payment deferrals, at 51%, as the main type of foreclosure prevention the GSEs are using. Deferrals
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Mortgage reparations for Black homeowners approved in Evanston, Ill.
Black residents in Evanston, Ill., became eligible to apply for housing-related funds in an effort to address “historic wealth and opportunity gaps” following a city council vote on Monday.
The $10 million program will offer low, five-figure sums for down payments and closing costs, to pay down mortgage principal, interest and/or late penalties on real property, or to make home repairs. Black residents who were affected by discriminatory city policies or had family members affected by those measures can apply, according to draft criteria.
Read the full storyhere.
The $10 million program will offer low, five-figure sums for down payments and closing costs, to pay down mortgage principal, interest and/or late penalties on real property, or to make home repairs. Black residents who were affected by discriminatory city policies or had family members affected by those measures can apply, according to draft criteria.
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New program aims to create affordable homes, loans for servicemembers
As the number of homes for sale in the U.S. keeps hitting new record lows, lenders and builders are teaming up to put more affordable inventory on the market.
AAFMAA Mortgage Services a wholly-owned subsidiary of the American Armed Forces Mutual Aid Association, is collaborating with the National Association of Independent Builders and Real Estate Services to form the Military Urban Development Initiative, a program designed to encourage new home construction. While aimed primarily at military families, the program is open to anyone.
Read the full storyhere.
AAFMAA Mortgage Services a wholly-owned subsidiary of the American Armed Forces Mutual Aid Association, is collaborating with the National Association of Independent Builders and Real Estate Services to form the Military Urban Development Initiative, a program designed to encourage new home construction. While aimed primarily at military families, the program is open to anyone.
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How mortgage industry recruitment has changed in the pandemic
The latest iteration of American Mortgage Network began originating loans in 2020, but the rate-driven wave of loan applications left the company at an inflection point.
Seeking to keep loans moving through the underwriting process, while trying to fill its back office staff out during a period when every lender was hiring for that kind of talent, the Chula Vista, Calif.-based lender did one other thing.
Read the full storyhere.
Seeking to keep loans moving through the underwriting process, while trying to fill its back office staff out during a period when every lender was hiring for that kind of talent, the Chula Vista, Calif.-based lender did one other thing.
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As CDC extends eviction ban, servicers face range of outcomes
The three-month extension of the federal eviction moratorium announced Monday could put some additional strain on multifamily servicers, and how well they’ll bear up depends on the effectiveness of government relief.
About 3.4 million renters consider themselves at risk for eviction due to nonpayment, but with $45 billion in rental aid from recent stimulus packages and other forms of pandemic rescue funds, the number affected could be closer to 130,000 to 660,000, according to a Zillow report.
Read the full storyhere.
About 3.4 million renters consider themselves at risk for eviction due to nonpayment, but with $45 billion in rental aid from recent stimulus packages and other forms of pandemic rescue funds, the number affected could be closer to 130,000 to 660,000, according to a Zillow report.
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5 questions for Mortgage Bankers Association's Lisa Haynes on inclusion
With over two decades of experience in financial services, the Mortgage Bankers Association’s senior vice president, chief financial officer, and chief diversity and inclusion officer Lisa Haynes witnessed the field’s lack of representation firsthand.
“As a Black woman in the finance profession, I have spent my career being the ‘only’ in the room,” she said.
Read the full storyhere.
“As a Black woman in the finance profession, I have spent my career being the ‘only’ in the room,” she said.
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Manufactured homes get a boost as inventory crisis persists
Mortgage lenders who have traditionally been reluctant to go too far down in the home price spectrum are increasingly interested in manufactured homes as elevated unemployment, inventory shortages, rising prices and higher rates make traditional houses less accessible to a growing number of borrowers.
From the slightly higher-end structures that rival site-built houses to the smallest single-section manufactured home, mortgages for these types of home have become more attractive to lenders who are using them to reach more buyers and offset dwindling refinancing.
Read the full storyhere.
From the slightly higher-end structures that rival site-built houses to the smallest single-section manufactured home, mortgages for these types of home have become more attractive to lenders who are using them to reach more buyers and offset dwindling refinancing.
Read the full story
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Rash of private equity deals reinforces investor interest in mortgages
The private equity markets are going big on the mortgage business. In the past week alone, five funding announcements regarding real estate finance-related businesses demonstrated that investors are pouring tens of millions, hundreds of millions and even billions into them.
If all goes well, these companies could one day go public — as was speculated afterBetter.com's last funding round .
Here is a look at the five transactions.
If all goes well, these companies could one day go public — as was speculated after
Fairway CEO fires back at United Wholesale Mortgage over broker agreement
Fairway Independent Mortgage is finally firing back at United Wholesale Mortgage, pointing to a clause in the latter's mortgage broker agreement limiting the opportunity to look for a lower interest rate after a loan locks.
Fairway CEO Steve Jacobson cited the following portion of the agreement, which was revised following UWM President and CEOMat Ishbia's announcement stating brokers that sell to Fairway or Rocket Pro TPO can no longer do business with his company:
Read the full storyhere.
Fairway CEO Steve Jacobson cited the following portion of the agreement, which was revised following UWM President and CEO
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Mortgage tech firms upgrade business development tools as volume slows
As mortgage refinance origination volumes continue to slip , Black Knight, Blend and Embrace Home Loans are each bringing new business development tools to market.
The Mortgage Bankers Association's March forecast predicts overall volume will slip in each of this year's four quarters, from $1.1 trillion in the first quarter, down to $578 billion in the fourth.
Projected refi originations over the same time frame are expected to go from $774 billion in the first quarter to just $145 billion for the fourth quarter.
Read the full storyhere.
The Mortgage Bankers Association's March forecast predicts overall volume will slip in each of this year's four quarters, from $1.1 trillion in the first quarter, down to $578 billion in the fourth.
Projected refi originations over the same time frame are expected to go from $774 billion in the first quarter to just $145 billion for the fourth quarter.
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Best Fintechs to Work For
A business world gone suddenly virtual played to the strengths of fintech companies. After all, they are built on digital alternatives to analog processes, from making loans to trading securities.
But even though many fintechs saw growth accelerate over the last 12 months, they were not immune to the political, social and financial turmoil wrought by the COVID-19 pandemic.
The 49 companies that earned a spot in our ranking of the Best Fintechs to Work For this year had to respond nimbly, as the crisis demanded shifts in business strategy and leadership style.
Read the full storyhere.
But even though many fintechs saw growth accelerate over the last 12 months, they were not immune to the political, social and financial turmoil wrought by the COVID-19 pandemic.
The 49 companies that earned a spot in our ranking of the Best Fintechs to Work For this year had to respond nimbly, as the crisis demanded shifts in business strategy and leadership style.
Read the full story
