NEWS About Mortgage From MBA (www.mortgagebankers.org)
Efforts Continue on FHA Reform
MBA met with a number of Senators and staff, both on the Senate Transportation, Treasury, HUD Appropriations Subcommittee and the Senate Banking Committee, this week in an effort to increase support in the Senate for FHA reform. Additionally, Sen. Hillary Clinton (D-NY) wrote to Chairman Kit Bond (R-MO) and Ranking Member Patty Murray (D-WA) of the Senate Appropriations Subcommittee. In her letter (attached) Sen. Clinton requests the inclusion of FHA provisions that are in S. 2597 and S. 3173 in the Subcommittee's FY2007 appropriations bill. Sen. Clinton introduced S. 2597 and S. 3173, which would empower FHA to create more housing and homeownership opportunities for working families. MBA continues to push for statutory changes in the FHA program to improve its efficiency and effectiveness.
Campaign Continues Against Higher MF FHA Fees
Representatives Gary Miller (R-CA) and Barney Frank (D-MA) are currently circulating a Dear Colleague letter within the House of Representatives in opposition to the increase in the MIP for FHA's multifamily programs. MBA is encouraging members to contact the Members of Congress from their area or any areas where they finance FHA loans to urge them to sign onto the letter to HUD opposing the fee increase. All comments on the notice must be received by HUD by July 28.
Also, MBA is asking its members to continue their contacts with members of the Senate Appropriations Committee to urge them not to include the MIP increase in their version of the HUD appropriations bill. The subcommittee is scheduled to mark up the bill on July 18 with full committee action scheduled for July 20.
MBA Members Meet with Fed and FTC Staff on Risk-Based Pricing Rule
On July 12, MBA and several executives from member companies met with Federal Reserve Board and Federal Trade Commission staff to discuss the risk-based pricing rulemaking - one of MBA's biggest priorities under the Fair and Accurate Credit Transactions Act (FACTA). The meeting focused on the value to consumers of permitting mortgage lenders to combine the existing credit score disclosure with the risk-based pricing notice. MBA will work with the agencies to further examine this approach.
MBA Submits Comments to FHFB on Retained Earnings and Excess Stock
On July 13, MBA submitted comments in strong opposition to a proposed rule issued by the Federal Housing Finance Board (FHFB) on retained earnings requirements and excess stock restrictions for the Federal Home Loan Banks (FHLBs). MBA's comments state that the proposed measures are not necessary to secure safe operations. MBA believes that, if implemented, the proposed rule would be detrimental to the overall success of the FHLBs, the achievement of their mission and the delivery of business value to members.
MBA requests that the FHFB consider MBA's concerns and recommends that the FHFB refrain from proceeding to issue a final rule based on the proposed rule. Instead, MBA asks that the FHFB issue an Advance Notice of Proposed Rulemaking as a framework for further discussion of the best approach to capital regulation for the FHLBs. MBA and several other groups previously requested that the rule be withdrawn.
Mortgage Fraud Language Included in Senate Commerce, Justice, and State Department Appropriations Bill
On July 13, the Senate Appropriations Committee passed the FY2007 Commerce, Justice, and State Department Appropriations measure. The committee report contains language, requested by MBA, which expresses the Committee's concern about the growing problem of mortgage fraud and urges the FBI to combat this threat by increasing resources dedicated to this crime and by supporting the operations of Interagency Task Forces in the cities with the highest concentrations of mortgage fraud.
Hurricane Relief Update
According to numerous press reports, the Louisiana Recovery Authority has agreed that assistance grants to homeowners with hurricane-damaged properties should be placed in escrow accounts. MBA urged Louisiana to take such an approach to ensure that the funds are used for repairs and rebuilding.
In a widely anticipated move, HUD confirmed that the additional $4.2 billion Congress funded last month for Louisiana's housing needs will be awarded. In addition, the State of Mississippi is expected to release the first of its grants next week.
MBA Testifies at Federal Reserve HOEPA Hearing in Atlanta
On July 11, Doug Duncan, MBA's Senior Vice President of Research and Business Development and Chief Economist, testified in Atlanta before the Federal Reserve on the macroeconomics of nontraditional mortgage products. In his oral remarks, Duncan discussed the use and prevalence of nontraditional mortgage products in the market. This discussion was particularly important because it provided some context within which the Fed and others can consider nontraditional mortgage products. Duncan discussed the economics of the mortgage market and then described how the market breaks down by product in terms of volume and originations. He noted that in terms of volumes, interest-only loans comprised 25% of total originations, and a growing share is becoming fixed rate loans. He continued by stating that option ARM originations accounted for 8% of the dollar volume originations in the second half of 2005. He then described the state of delinquencies and foreclosures.
This hearing was the last in a series of four Federal Reserve hearings this summer on HOEPA. MBA testified at three of those hearings. Per notice in the Federal Register, MBA will submit written comments to the Fed by August 15 on predatory lending laws, nontraditional mortgage products, reverse mortgage lending and consumer shopping behavior.
MBA Makes Terrorism Insurance Presentation to the President's Working Group on Financial Markets
On July 14, Stacey Berger presented to the President's Working Group on Financial Markets (PWG), the MBA's views on a long-term solution for terrorism risk insurance. Mr. Berger is Executive Vice President of Midland Loan Services, Inc. and serves as Vice Chair of COMBOG. The PWG was charged by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) with preparing a report no later than September 30, 2006 that addresses the long-term availability and affordability of terrorism risk insurance including nuclear, biological, chemical, and radiological (NBCR) and group life insurance. During the presentation, Mr. Berger indicated that MBA would evaluate long-term solutions based upon the following principles:
Widely Available - Terrorism insurance needs to be widely available, which would require the existing "make available" provision in Terrorism Risk Insurance Extension Act of 2005 (TRIEA) be included in a long-term terrorism insurance solution.
No Interruptions - The long-term terrorism insurance solution should be crafted in a manner that eliminates short-term interruptions in terrorism insurance availability or price shocks when it is implemented.
Affordable - Terrorism insurance needs to be priced in an affordable manner.
All-Peril Coverage - Terrorism insurance will cover all-perils including nuclear, biological, chemical, and radiological threats.
All Terrorism Sources - Terrorism insurance should cover both foreign and domestic source terrorist events.
Lender/Servicer Notifications - lenders/servicers are listed as mortgagee, loss payee and additional insured depending on the loan documentation and as such they are entitled to specific notifications of coverage lapses, gaps, and renewals. Any long-term solution needs to preserve and implement the required notification.
Rhode Island Predatory Lending Bill Signed Into Law
On Tuesday, July 11, 2006, Rhode Island Governor Donald Carcieri signed S 2851 - "the Rhode Island Home Loan Protection Act" into law. The new law will take effect on December 31, 2006. The legislation contains many troublesome provisions from the industry's perspective. If enacted, it would create an uncertain legal and regulatory environment for the mortgage lending industry in the state. The bill will have the unintended consequence of creating an environment in which the mortgage lending industry will face extremely high legal risks that could render it impossible to conduct business in the state. It also subjects lenders, sellers, buyers, assignors and assignees of mortgages to increased exposure to frivolous litigation. These increased risks are due to subjective standards and vague definitions in the bill that will present significant compliance challenges.
In addition, the new law contains prohibitions that apply not only to loans that are defined as "high cost home loans" but to all home loans, including home equity loans and home equity lines of credit. Although the industry has seen some similar provisions in other state predatory lending laws, these prohibitions had previously only been applied to "high cost home loans" and it is difficult to predict how applying these prohibitions to all home loans will affect the primary and secondary mortgage markets in the state.
MBA is preparing a more detailed analysis of the bill, which will be distributed to MBA members via MBAlert this week.
CampusMBA to Host Conference Call on RESPA Reform
On Thursday, July 20, from 2:00 to 3:30 PM, CampusMBA will host a special members-only conference call on RESPA reform. The purpose of the call is to seek input from MBA members on potential MBA options for reform and draft Good Faith Estimate (GFE) and revised HUD-1. These documents were developed by a task force representing a cross section of MBA members under the leadership of MBA Chairman Regina Lowrie, CMB, in light of repeated public pronouncements by the Secretary and other senior officials that the Department of Housing and Urban Development (HUD) intends to go forward with RESPA reform. Pending member input, these documents could comprise an MBA approach to RESPA reform.
To participate: Click here to register online or call (800) 348-8653. There is no charge for this MBA member-only forum.
MBA members can view a summary and description of the options, the new GFE and HUD-1 on www.mortgagebankers.org/respa.htm and will also be able to provide written comments online.
MBA met with a number of Senators and staff, both on the Senate Transportation, Treasury, HUD Appropriations Subcommittee and the Senate Banking Committee, this week in an effort to increase support in the Senate for FHA reform. Additionally, Sen. Hillary Clinton (D-NY) wrote to Chairman Kit Bond (R-MO) and Ranking Member Patty Murray (D-WA) of the Senate Appropriations Subcommittee. In her letter (attached) Sen. Clinton requests the inclusion of FHA provisions that are in S. 2597 and S. 3173 in the Subcommittee's FY2007 appropriations bill. Sen. Clinton introduced S. 2597 and S. 3173, which would empower FHA to create more housing and homeownership opportunities for working families. MBA continues to push for statutory changes in the FHA program to improve its efficiency and effectiveness.
Campaign Continues Against Higher MF FHA Fees
Representatives Gary Miller (R-CA) and Barney Frank (D-MA) are currently circulating a Dear Colleague letter within the House of Representatives in opposition to the increase in the MIP for FHA's multifamily programs. MBA is encouraging members to contact the Members of Congress from their area or any areas where they finance FHA loans to urge them to sign onto the letter to HUD opposing the fee increase. All comments on the notice must be received by HUD by July 28.
Also, MBA is asking its members to continue their contacts with members of the Senate Appropriations Committee to urge them not to include the MIP increase in their version of the HUD appropriations bill. The subcommittee is scheduled to mark up the bill on July 18 with full committee action scheduled for July 20.
MBA Members Meet with Fed and FTC Staff on Risk-Based Pricing Rule
On July 12, MBA and several executives from member companies met with Federal Reserve Board and Federal Trade Commission staff to discuss the risk-based pricing rulemaking - one of MBA's biggest priorities under the Fair and Accurate Credit Transactions Act (FACTA). The meeting focused on the value to consumers of permitting mortgage lenders to combine the existing credit score disclosure with the risk-based pricing notice. MBA will work with the agencies to further examine this approach.
MBA Submits Comments to FHFB on Retained Earnings and Excess Stock
On July 13, MBA submitted comments in strong opposition to a proposed rule issued by the Federal Housing Finance Board (FHFB) on retained earnings requirements and excess stock restrictions for the Federal Home Loan Banks (FHLBs). MBA's comments state that the proposed measures are not necessary to secure safe operations. MBA believes that, if implemented, the proposed rule would be detrimental to the overall success of the FHLBs, the achievement of their mission and the delivery of business value to members.
MBA requests that the FHFB consider MBA's concerns and recommends that the FHFB refrain from proceeding to issue a final rule based on the proposed rule. Instead, MBA asks that the FHFB issue an Advance Notice of Proposed Rulemaking as a framework for further discussion of the best approach to capital regulation for the FHLBs. MBA and several other groups previously requested that the rule be withdrawn.
Mortgage Fraud Language Included in Senate Commerce, Justice, and State Department Appropriations Bill
On July 13, the Senate Appropriations Committee passed the FY2007 Commerce, Justice, and State Department Appropriations measure. The committee report contains language, requested by MBA, which expresses the Committee's concern about the growing problem of mortgage fraud and urges the FBI to combat this threat by increasing resources dedicated to this crime and by supporting the operations of Interagency Task Forces in the cities with the highest concentrations of mortgage fraud.
Hurricane Relief Update
According to numerous press reports, the Louisiana Recovery Authority has agreed that assistance grants to homeowners with hurricane-damaged properties should be placed in escrow accounts. MBA urged Louisiana to take such an approach to ensure that the funds are used for repairs and rebuilding.
In a widely anticipated move, HUD confirmed that the additional $4.2 billion Congress funded last month for Louisiana's housing needs will be awarded. In addition, the State of Mississippi is expected to release the first of its grants next week.
MBA Testifies at Federal Reserve HOEPA Hearing in Atlanta
On July 11, Doug Duncan, MBA's Senior Vice President of Research and Business Development and Chief Economist, testified in Atlanta before the Federal Reserve on the macroeconomics of nontraditional mortgage products. In his oral remarks, Duncan discussed the use and prevalence of nontraditional mortgage products in the market. This discussion was particularly important because it provided some context within which the Fed and others can consider nontraditional mortgage products. Duncan discussed the economics of the mortgage market and then described how the market breaks down by product in terms of volume and originations. He noted that in terms of volumes, interest-only loans comprised 25% of total originations, and a growing share is becoming fixed rate loans. He continued by stating that option ARM originations accounted for 8% of the dollar volume originations in the second half of 2005. He then described the state of delinquencies and foreclosures.
This hearing was the last in a series of four Federal Reserve hearings this summer on HOEPA. MBA testified at three of those hearings. Per notice in the Federal Register, MBA will submit written comments to the Fed by August 15 on predatory lending laws, nontraditional mortgage products, reverse mortgage lending and consumer shopping behavior.
MBA Makes Terrorism Insurance Presentation to the President's Working Group on Financial Markets
On July 14, Stacey Berger presented to the President's Working Group on Financial Markets (PWG), the MBA's views on a long-term solution for terrorism risk insurance. Mr. Berger is Executive Vice President of Midland Loan Services, Inc. and serves as Vice Chair of COMBOG. The PWG was charged by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) with preparing a report no later than September 30, 2006 that addresses the long-term availability and affordability of terrorism risk insurance including nuclear, biological, chemical, and radiological (NBCR) and group life insurance. During the presentation, Mr. Berger indicated that MBA would evaluate long-term solutions based upon the following principles:
Widely Available - Terrorism insurance needs to be widely available, which would require the existing "make available" provision in Terrorism Risk Insurance Extension Act of 2005 (TRIEA) be included in a long-term terrorism insurance solution.
No Interruptions - The long-term terrorism insurance solution should be crafted in a manner that eliminates short-term interruptions in terrorism insurance availability or price shocks when it is implemented.
Affordable - Terrorism insurance needs to be priced in an affordable manner.
All-Peril Coverage - Terrorism insurance will cover all-perils including nuclear, biological, chemical, and radiological threats.
All Terrorism Sources - Terrorism insurance should cover both foreign and domestic source terrorist events.
Lender/Servicer Notifications - lenders/servicers are listed as mortgagee, loss payee and additional insured depending on the loan documentation and as such they are entitled to specific notifications of coverage lapses, gaps, and renewals. Any long-term solution needs to preserve and implement the required notification.
Rhode Island Predatory Lending Bill Signed Into Law
On Tuesday, July 11, 2006, Rhode Island Governor Donald Carcieri signed S 2851 - "the Rhode Island Home Loan Protection Act" into law. The new law will take effect on December 31, 2006. The legislation contains many troublesome provisions from the industry's perspective. If enacted, it would create an uncertain legal and regulatory environment for the mortgage lending industry in the state. The bill will have the unintended consequence of creating an environment in which the mortgage lending industry will face extremely high legal risks that could render it impossible to conduct business in the state. It also subjects lenders, sellers, buyers, assignors and assignees of mortgages to increased exposure to frivolous litigation. These increased risks are due to subjective standards and vague definitions in the bill that will present significant compliance challenges.
In addition, the new law contains prohibitions that apply not only to loans that are defined as "high cost home loans" but to all home loans, including home equity loans and home equity lines of credit. Although the industry has seen some similar provisions in other state predatory lending laws, these prohibitions had previously only been applied to "high cost home loans" and it is difficult to predict how applying these prohibitions to all home loans will affect the primary and secondary mortgage markets in the state.
MBA is preparing a more detailed analysis of the bill, which will be distributed to MBA members via MBAlert this week.
CampusMBA to Host Conference Call on RESPA Reform
On Thursday, July 20, from 2:00 to 3:30 PM, CampusMBA will host a special members-only conference call on RESPA reform. The purpose of the call is to seek input from MBA members on potential MBA options for reform and draft Good Faith Estimate (GFE) and revised HUD-1. These documents were developed by a task force representing a cross section of MBA members under the leadership of MBA Chairman Regina Lowrie, CMB, in light of repeated public pronouncements by the Secretary and other senior officials that the Department of Housing and Urban Development (HUD) intends to go forward with RESPA reform. Pending member input, these documents could comprise an MBA approach to RESPA reform.
To participate: Click here to register online or call (800) 348-8653. There is no charge for this MBA member-only forum.
MBA members can view a summary and description of the options, the new GFE and HUD-1 on www.mortgagebankers.org/respa.htm and will also be able to provide written comments online.
posted by !GOD BLESS YOU! at 11:52
0 Comments:
Post a Comment
<< Home