Dodd-Frank Act

Browse articles from all of our Newsletters related to Dodd-Frank Act.

August 11, 2016 - Inside Mortgage Finance

FHFA Stress Test of Hypothetical Crisis Shows Fannie And Freddie Could Need as Much as a $125B Bailout

In the event of a severe economic crisis, Fannie Mae and Freddie Mac could need a bailout of up to $125.8 billion, according to a Federal Housing Finance Agency stress test released this week. The test of severely adverse scenarios, required by the Dodd-Frank Act for companies with total consolidated assets of more than $10 billion, took place in March and is based on Fannie and Freddie portfolios as of Dec. 31, 2015. The bailout would be needed on an incremental basis and would also depend on the treatment of the government-sponsored enterprises’ deferred tax assets. Under this hypothetical economic scenario, situations include...

July 29, 2016 - Inside MBS & ABS

Commercial Mortgage Securitization Slumped in 2Q16 as Non-Agency Issuance Hits Four-Year Low

New issuance of non-agency commercial MBS fell dramatically during the second quarter of 2016, more than offsetting a modest uptick in the production of agency multifamily MBS, according to a new Inside MBS & ABS analysis. Non-agency CMBS issuance fell to just $12.87 billion in the second quarter, a 29.5 percent drop from the first three months of the year. It was the lowest quarterly output of new CMBS since the second quarter of 2012, when just $10.63 billion of new securities were issued and the market was still finding its legs after the financial meltdown. New CMBS issuance has been...[Includes one data table]

July 28, 2016 - Inside Mortgage Finance

Democratic Platform Would Expand Foreclosure Prevention, Increase Access to Affordable Housing

The Democratic Party wants to expand programs to prevent foreclosure, increase access to affordable housing and preserve the 30-year fixed-rate mortgage, according to its recently released 2016 platform. “Whereas the Republican Presidential nominee rooted for the housing crisis, Democrats will continue to fight for those families who suffered the loss of their homes,” the document says. “We will help those who are working toward a path of financial stability and will put sustainable homeownership into the reach of more families.” Democrats want...

July 28, 2016 - Inside Mortgage Finance

Small Banks Remain Just as Active Under CFPB’s Servicing Rules, GAO Finds

Small community lenders such as banks and credit unions not only have remained active in the mortgage servicing space under the Consumer Financial Protection Bureau’s mortgage-servicing rules, their market share of 13 percent in 2015 was double what it was in 2008 after the financial crisis, according to a new report from the Government Accountability Office. The largest community banks and credit unions accounted for most of the growth in the share of servicing by community banks and credit unions, the report said. Many of the representatives from 16 community lenders that GAO interviewed said...

July 22, 2016 - Inside MBS & ABS

Republican Platform 2016 Talks of Reduced Government Role, Ending Mandates

The Republican platform, released this week during the Republican National Convention, would scale back the government’s role in housing and make borrowers and lenders more responsible. But it offered a somewhat vague prescription for what to do with Fannie Mae and Freddie Mac. “Our goal is to advance responsible homeownership while guarding against the abuses that led to the housing collapse,” the platform states. The GOP said housing reform should include clear underwriting standards and guidelines on predatory and acceptable lending practices – standards that are arguably at the core of the Dodd-Frank Act that’s roundly criticized by the party. Republicans blamed...

July 21, 2016 - Inside Mortgage Finance

Small Banks and Nonbanks Applaud H.R. 5907, Seek Relief from Increased Regulatory Oversight

Smaller banks and nonbanks are rallying behind legislation recently introduced to relieve community mortgage lenders from some of the scrutiny placed on larger banks. Rep. Roger Williams, R-TX, authored H.R. 5907, the Community Mortgage Lenders Regulatory Act of 2016, and emphasized that community mortgage lenders engaged in traditional mortgage lending were not responsible for the recent mortgage crisis. Scott Olson, director of the Community Home Lenders Association, told...

July 15, 2016 - Inside MBS & ABS

Industry Participants Seek Exemption From Related- Party Debt Taxes that Could Apply to MBS and ABS

A new tax policy proposed by the Internal Revenue Service in April aimed at corporate “earnings stripping” tax avoidance maneuvers could cause significant problems for the MBS and ABS markets, according to industry participants. The proposed rule from the IRS under Section 385 of the Internal Revenue Code of 1986 would treat related-party debt as equity, aiming to reduce internal restructurings at foreign corporations by establishing new taxes. The Structured Finance Industry Group’s Tax Policy Committee submitted...


The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.


Better by 11% to 25%.


Off the charts better. Applications are great now.


Worse than 1H, but not by much.


A lot worse. But not sure on the damage.


Housing Pulse