Senate Banking Committee Chairman Richard Shelby, R-Ala., does not want a affordable housing fund to be based on GSE profits, a committee spokesman said, and the senator is considering other "mechanisms" in drafting a GSE regulatory reform bill."There are better mechanisms to refocus" Fannie Mae and Freddie Mac on affordable housing, committee spokesman Andrew Gray said. Committee Democrats support a proposal, drafted by Sen. Jack Reed, D-R.I., that would require the two government-sponsored enterprises to contribute 5% of their profits to an affordable housing fund. But Sen. Shelby is concerned that it would encourage the GSEs to increase their profits by expanding the size of their mortgage portfolios. Sen. Reed discounted those concerns. "We hope the new GSE regulator will very carefully monitor not just this housing program, but their overall portfolios," he told MortgageWire. Earlier this year, the Mortgage Bankers Association recommended to the House and Senate banking committees that Fannie's and Freddie's contributions to an AH fund could be tied to a percentage of their outstanding debt, which would act as a restraint on portfolio growth. "It creates a different set of incentives, and it is one that may be gaining new currency," the MBA's top lobbyist Kurt Pfotenhauer said.
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Government officials confirmed the California Democrat is under scrutiny over a long-held Maryland property he designated as a second home in 2020.
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Credit availability declined in June as the job market and rising delinquency figures have some lenders concerned, the leading mortgage trade group said.
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The Ocean State is the latest to enact rules prohibiting the agreements that end up tying older homeowners to long-term contracts with real estate brokers.
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CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."
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House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
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Gain on sale at JPMorgan Chase fell by 5 basis points in the second quarter, which could be a slightly adverse sign for mortgage banker results, KBW said.
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