GSEs

The Basel III capital requirements are making it hard for banks to stay in the servicing business, said David Motley, president of Colonial Savings. Their exodus from the market indirectly hurts consumers, he argued.

Senate Banking Committee Chairman Mike Crapo said Wednesday that although he plans to begin working on housing finance reform and changes to the Dodd-Frank Act, the poor relationship between Democrats and Republicans will slow any progress.

Fannie Mae is making technological updates and implementing policy and operational changes as part of an effort to improve servicing.

The government-sponsored enterprises should target their affordable housing efforts to strengthening the single-family market, rather than investing in private equity giants.

The sale will include Fannie Mae's sixth "community impact" pool of loans.

JPMorgan Chase is known to eschew selling conforming mortgage loans to Fannie Mae and Freddie Mac, preferring to securitize them in the private-label market.

The denial rate traditionally used by the mortgage industry is hiding the fact that fewer borrowers with lower credit are applying for loans, according to the Urban Institute.

While lenders support the intent of a proposal to encourage the growth of private flood insurance, they claim a regulatory proposal doesn't give lenders enough flexibility and remains too complicated.

The rise in home values is good news for homeowners looking to tap the equity in their homes to pay down debt or make big purchases, but some consumer groups fear it could lead to a new wave of loan defaults.

Federal Reserve Bank of St. Louis President James Bullard said the central bank ought not rush to raising interest rates next month because uncertainty over the fiscal policies of the Trump administration clouds the U.S. economic outlook.