CFPB extends forbearance deadline, Ginnie Mae nominee gets closer to confirmation and more of the week’s news
October 8, 2021 5:31 PM
CFPB extends forbearance request deadline for government loans
The deadline for initial forbearance requests for Federal Housing Administration-insured and Department of Veterans Affairs guaranteed loans has been extended, according to the Consumer Financial Protection Bureau.
Previously set for Sept. 30, the deadline for initial forbearance requests for FHA, VA and U.S. Department of Agriculture loans won’t arrive until the pandemic ends.
“If you have a home loan backed by HUD/FHA, USDA, or VA, your mortgage servicer is authorized to approve initial COVID hardship forbearance requests until the...National Emergency is officially over,” the CFPB said.
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Previously set for Sept. 30, the deadline for initial forbearance requests for FHA, VA and U.S. Department of Agriculture loans won’t arrive until the pandemic ends.
“If you have a home loan backed by HUD/FHA, USDA, or VA, your mortgage servicer is authorized to approve initial COVID hardship forbearance requests until the...National Emergency is officially over,” the CFPB said.
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Biden nominee to head Ginnie Mae moves closer to confirmation
President Biden’s nominee to lead Ginnie Mae pledged to lawmakers Thursday that if confirmed, she would do her part to expand access to credit and provide the critical capital and liquidity needed to finance affordable housing as the U.S. faces record-high demand for homes.
Alanna McCargo, currently a senior advisor at the Department of Housing and Urban Development, told the Senate Banking Committee in a hearing to examine her nomination that while her role in slowing home price appreciation would be limited at Ginnie Mae, she would ensure that the agency would continue to be a reliable backstop to investors in mortgage-backed securities. That support in turn ensures that borrowers in government-backed programs are able to capture lower interest rates on home loans.
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Alanna McCargo, currently a senior advisor at the Department of Housing and Urban Development, told the Senate Banking Committee in a hearing to examine her nomination that while her role in slowing home price appreciation would be limited at Ginnie Mae, she would ensure that the agency would continue to be a reliable backstop to investors in mortgage-backed securities. That support in turn ensures that borrowers in government-backed programs are able to capture lower interest rates on home loans.
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Discrimination continues to impact mortgage and housing professionals
“He said, ‘Listen, you little [N-word], I’m not selling my house to you,’ and slammed the phone down.”
That happened to Chandra Patterson, a realtor and regional vice presidentfor the National Association of Real Estate Brokers , during a routine prospecting call on an unsold home’s expired listing. “I was never called the N-word until that moment,” she said in an interview.
Overall, 41% of employees throughout professional and financial services reported personally facing some form of workplace discrimination,according to a survey of 458 respondents conducted by National Mortgage News parent company Arizent. That share jumps to 74% for BIPOC and Latinx women, then steps down to 57% for white women, 51% for BIPOC and Latinx men and 22% for white men.
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That happened to Chandra Patterson, a realtor and regional vice president
Overall, 41% of employees throughout professional and financial services reported personally facing some form of workplace discrimination,
Read the
UniversalCIS, Credit Plus create largest trimerge report provider
UniversalCIS and Credit Plus are combining to create the mortgage industry's largest provider of trimerge credit reports.
Terms of the transaction, which is described as a merger of equals, were not disclosed.
UniversalCIS, based in Philadelphia, has grown in the past 14 months via a series of acquisitions. The first deal took place in August 2020, when CIS merged with Avantus. The following October, itmerged with Universal Credit Services. Among the other deals was the purchase of appraisal technology company SharperLending , announced in January of this year. In July, it bought the lending solutions and appraisal management divisions of Data Facts.
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Terms of the transaction, which is described as a merger of equals, were not disclosed.
UniversalCIS, based in Philadelphia, has grown in the past 14 months via a series of acquisitions. The first deal took place in August 2020, when CIS merged with Avantus. The following October, it
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GSE securitization platform scuttles private-label market endeavor
The joint venture that runs Fannie Mae and Freddie Mac’s mortgage securitization platform has moved away from plans to offer its services to the private-label market as well.
Common Securitization Solutions has disbanded a group of independent board members originally brought in to look into the possibility, according to the Federal Housing Finance Agency. It also has named Matthew Feldman, the retired president and CEO of the Federal Home Loan Bank of Chicago, as chairman. Tony Renzi, a former mortgage servicing executive, will remain the CEO.
“In early 2020, FHFA explored expanding the role of CSS to serve a broader market. After a nearly two-year review, FHFA determined that CSS should instead focus on maintaining the resiliency of the enterprises’ mortgage-backed securities platform,” the agency said in a press release. “This decision allows CSS to stay focused on the safety and soundness of the housing finance market and reduce unnecessary expenses.”
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Common Securitization Solutions has disbanded a group of independent board members originally brought in to look into the possibility, according to the Federal Housing Finance Agency. It also has named Matthew Feldman, the retired president and CEO of the Federal Home Loan Bank of Chicago, as chairman. Tony Renzi, a former mortgage servicing executive, will remain the CEO.
“In early 2020, FHFA explored expanding the role of CSS to serve a broader market. After a nearly two-year review, FHFA determined that CSS should instead focus on maintaining the resiliency of the enterprises’ mortgage-backed securities platform,” the agency said in a press release. “This decision allows CSS to stay focused on the safety and soundness of the housing finance market and reduce unnecessary expenses.”
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Bloomberg News
Chopra expected to address fair housing, discrimination as CFPB head
As Rohit Chopra gets set to take the helm of the Consumer Financial Protection Bureau , many expect fair lending to be high on his agenda. But his anti-discrimination efforts could diverge from that of his predecessors.
Anti-redlining policies traditionally have been focused on mortgage lending. Analysts say housing will still be a priority, but the CFPB will likely also crack down on fair-lending violations for small-business loans governed by the Paycheck Protection Program.
Read thefull story here .
Anti-redlining policies traditionally have been focused on mortgage lending. Analysts say housing will still be a priority, but the CFPB will likely also crack down on fair-lending violations for small-business loans governed by the Paycheck Protection Program.
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Ting Shen/Bloomberg
CHLA calls for equal rules among depositories and IMBs
The Community Home Lenders Association greeted newly confirmed Consumer Financial Protection Bureau Director Rohit Gupta by asking him to equalize licensing requirements between bank and nonbank loan officers.
Under a January 2013 CFPB rule implementing the SAFE Act, mortgage loan officers at federally insured banks only have to be registered on the Nationwide Multi-State Licensing System. Their nonbank counterparts need to pass a licensing examination.
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Under a January 2013 CFPB rule implementing the SAFE Act, mortgage loan officers at federally insured banks only have to be registered on the Nationwide Multi-State Licensing System. Their nonbank counterparts need to pass a licensing examination.
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Altisource offers cryptocurrency payment option
Online real estate services provider and marketplace Altisource Portfolio Solutions is the latest firm to explore the potential of cryptocurrency, announcing that it will start allowing its use for property purchases and investments made through its subsidiary sites.
Home buyers on Altisource marketplaces Equator.com or Hubzu.com who choose Premium Title — another Altisource-owned company — as their title and escrow provider will now be able to complete their transaction through ForumPay, which will convert the cryptocurrency at a fixed rate and wire funds directly to Premium Title or a closing attorney.
Read thefull story here .
Home buyers on Altisource marketplaces Equator.com or Hubzu.com who choose Premium Title — another Altisource-owned company — as their title and escrow provider will now be able to complete their transaction through ForumPay, which will convert the cryptocurrency at a fixed rate and wire funds directly to Premium Title or a closing attorney.
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Work still needed for industry leadership to match client demographics
While businesses continue to talk about the need for greater diversity, equity and inclusion within their companies, diversity consultant Jina Etienne offers another key component to be included in the DEI conversation — one that many might be overlooking.
“The goal of inclusion is belonging,” Etienne said. “It's creating a workforce where everybody feels like they're part of the team. The data shows performance improves, turnover decreases, absenteeism decreases, all of these things drive retention. Retention drives, ultimately, development into leadership.”
even as companies of all sizes, including those within the mortgage sector, have placed increased emphasis on diversity and inclusion, results froma recent study conducted by Arizent , parent company of National Mortgage News, show that plenty of work remains before reality aligns with good intentions.
“There’s more want-to than there has been in the past, and I do think it's genuine, with some of the larger corporations trying to improve the experience for diverse employees and diversify the workforce,” said Jerome Nichols, president of commercial real estate financier and portfolio management company Standard Real Estate Investments.
Read thefull story here .
“The goal of inclusion is belonging,” Etienne said. “It's creating a workforce where everybody feels like they're part of the team. The data shows performance improves, turnover decreases, absenteeism decreases, all of these things drive retention. Retention drives, ultimately, development into leadership.”
even as companies of all sizes, including those within the mortgage sector, have placed increased emphasis on diversity and inclusion, results from
“There’s more want-to than there has been in the past, and I do think it's genuine, with some of the larger corporations trying to improve the experience for diverse employees and diversify the workforce,” said Jerome Nichols, president of commercial real estate financier and portfolio management company Standard Real Estate Investments.
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Gary Tramontina
Regions buys California commercial real estate lender
Regions Financial in Birmingham, Alabama, is building out its capital markets business with a deal for a California lender that specializes in small-balance commercial real estate loans.
The $156 billion-asset bank will acquire the lending and servicing business of Sabal Capital Partners in a deal expected to close in the fourth quarter. Financial terms of the transaction were not disclosed.
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The $156 billion-asset bank will acquire the lending and servicing business of Sabal Capital Partners in a deal expected to close in the fourth quarter. Financial terms of the transaction were not disclosed.
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Home price growth breaks 45-year record
The rate of home price growth climbed to a new extreme in August, according to CoreLogic.
Annual appreciation surged by 18.1% in August, setting a new record since tracking began in 1976. It more than tripled theyear-ago rate of 5.9% and shattered the “downshifted” 0.2% growth forecast from August 2020. It also marks the sixth straight month in which the Home Price Index made double-digit year-over-year gains, besting July’s 17.5% and June’s 16.6% .
Read thefull story here .
Annual appreciation surged by 18.1% in August, setting a new record since tracking began in 1976. It more than tripled the
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Credit scores increased among consumers with COVID hardships
At least one credit score model revealed improvement for 18.7 million borrowers with financial hardships during the pandemic, new TransUnion research shows.
In a study of VantageScore 4.0 changes for consumer credit lines other than student loans, TransUnion found that 58% of those with an indicator offorbearance or any other type of payment relief program in 2020 saw an increase during that year, when the CARES Act limited some adverse credit actions.
Read thefull story here .
In a study of VantageScore 4.0 changes for consumer credit lines other than student loans, TransUnion found that 58% of those with an indicator of
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Andrew Harrer/Bloomberg
Snapdocs and Freddie Mac join forces to drive eMortgages
Snapdocs and Freddie Mac teamed up on a new program designed to push originators towards using digital mortgages and electronic promissory notes.
The software aims to address some of the key issues that have hindered the adoption of eMortgages and eNotes, such as the unique technical components required to store and manage the note, the variability in counterparties' digital closing acceptance policies and the complexity of implementing and managing the process changes required.
With the quickstart program, Snapdocs provides the technology necessary to generate, store, manage, and transfer eMortgages that is agnostic to point-of-sale, loan origination or doc prep systems. It also involves creating streamlined implementation processes between counterparties with the aim of reducing complexity and facilitating eMortgage approvals.
Read thefull story here .
The software aims to address some of the key issues that have hindered the adoption of eMortgages and eNotes, such as the unique technical components required to store and manage the note, the variability in counterparties' digital closing acceptance policies and the complexity of implementing and managing the process changes required.
With the quickstart program, Snapdocs provides the technology necessary to generate, store, manage, and transfer eMortgages that is agnostic to point-of-sale, loan origination or doc prep systems. It also involves creating streamlined implementation processes between counterparties with the aim of reducing complexity and facilitating eMortgage approvals.
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Colorado adds fee for nonbank servicers
A new Colorado law will require nonbank mortgage servicers to sign up with the administrator of the state’s Uniform Consumer Credit Code and pay an ongoing fee starting next year.
“The Act, among other things...requires mortgage servicers to pay the administrator an initial notification fee within 30 days after commencing servicing activities in Colorado,” Weiner, Brodsky & Kider noted inan Oct. 1 report posted on JD Supra. “Thereafter, mortgage servicers will be required to pay an annual notification fee on or before Jan. 31 of each year.”
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“The Act, among other things...requires mortgage servicers to pay the administrator an initial notification fee within 30 days after commencing servicing activities in Colorado,” Weiner, Brodsky & Kider noted in
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Mortgage rates fall back below 3%
The 30-year fixed-rate mortgage averaged 2.99% for the seven days ending Oct. 7, according to the Freddie Mac Primary Mortgage Market Survey. A week ago, the average shot up to 3.01% after spending the majority of the summer close to 2.9%. The latest rate still came in above the figure from this time a year ago when the 30-year average sat at 2.87%.
“Mortgage rates continue to hover at around 3% again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s chief economist, in a press statement.
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