2/9/18  WASHINGTON — The House passed a bill Thursday that would loosen regulatory restrictions on the mortgage points and fees charged by lender-affiliated title insurers and other companies.

The Consumer Financial Protection Bureau caps points and fees at 3% for “qualified mortgages” that are in compliance with the agency’s ability-to-repay rule. However, certain real estate-related fees, such as for title insurance or appraisals, do not count toward the cap if they are paid to a company unaffiliated with the lender.

The Mortgage Choice Act, which passed the House 280-131, with support from both sides of the aisle, would exclude certain fees regardless of whether the company is an affiliate or not. It would also exclude insurance premiums that are held in escrow. A similar bill also passed the House in the previous Congress.

"By excluding these items from the calculation, it will allow more loans to qualify as QM and open up more credit to potential homebuyers," Rep. Keith Rothfus, R-Pa., said in the House floor debate Wednesday.  Supporters of the bill argue that leaving lender-affiliated companies out of the exemption can increase the cost of the mortgage, even if the loan is QM. That is counter to the intent of the CFPB rules, they say.

2/7/18  - Dallas-area home prices were 6.9% higher at the end of 2017 compared with a year earlier, according to a new report by CoreLogic. Dallas' year-over-year home price gain was slightly ahead of the 6.6% nationwide price increase from December 2016.

"Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock," Frank Martell, president and CEO of CoreLogic, said in the report. "The largest price gains during 2017 were in five Western states: California, Idaho, Nevada, Utah and Washington.

"As home prices and the cost of originating loans rise, affordability continues to erode, making it more challenging for both first-time buyers and moderate-income families to buy," Martell said. "At this point, we estimate that more than one-third of the 100 largest metropolitan areas are overvalued."

Dallas-area home prices have risen more than 40% in the last four years, giving the area one of the greatest home price appreciation increases since the recession. At the end of 2017, some of the biggest annual home price increases were in Las Vegas (up 11.2%), San Francisco (10.1%) and Denver (8.1%).

CoreLogic predicts that nationwide home prices will rise 4.3% during 2018.

 

2/5/18  - The mortgage industry should expect significant volatility that could result in a wave of lender consolidation in 2018, warns an analyst at risk management technology vendor LoanLogics.

Origination volume will continue to decline amid rising interest rates this year, which will leave lenders strapped for cash to fund ongoing operations, particularly among nondepository mortgage companies, Les Parker, the senior vice president of industry relations and consulting at Trevose, Pa.-based LoanLogics wrote in a recent industry analysis.

"2018 just may look like 1994 to mortgage bankers," said Parker, referring to the end of the early 1990s refinance boom. That pickup of refi volume helped nonbank mortgage lenders first gain prominence in the industry, but the sector suffered setbacks when rates began to rise later in the decade.

2/6/18  - WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today issued a Request for Information (RFI) about the Bureau’s enforcement processes. The Bureau is seeking information to help assess the overall efficiency and effectiveness of its processes related to the enforcement of federal consumer financial law. This is the third in a series of RFIs announced as part of Acting Director Mick Mulvaney’s call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The next RFI in the series will address the Bureau’s supervisory processes, and will be issued next week.

The RFI on enforcement processes is available at: http://files.consumerfinance.gov/f/documents/cfpb_rfi_enforcement-processes_022018.pdf

The CFPB will begin accepting comments once the RFI is printed in the Federal Register, which is expected to occur on February 12.

More information about the call for evidence is available at: http://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/call-for-evidence/

2/3/18  - A report Monday indicating that the Consumer Financial Protection Bureau is pulling back from a "full-scale probe" of Equifax led to wide-ranging Democratic criticism of the CFPB and revived scrutiny of the credit bureaus.

But it is unclear whether the CFPB is abandoning its supervisory oversight of Equifax or just taking a back seat to the Federal Trade Commission as the latter investigates the credit bureau over its massive data breach last year.

On Monday, Reuters reported that acting CFPB Director Mick Mulvaney has not ordered subpoenas against Equifax or taken any sworn testimony from its executives. Reuters cited unnamed sources who said the CFPB rebuffed prudential banking regulators that had offered to help with on-site supervisory exams.

Yet the story appears more complicated than that. Last year, the FTC took the unusual step of announcing that it was taking the lead in investigating Equifax. Per a prior agreement between the two agencies, to avoid overlapping roles, only one of them is tasked with probing any of the credit reporting giants when it is suspected of potential wrongdoing.