Democratic State AGs Urge CFPB to Retain Public Access to Consumer Complaint Database. A coalition of 15 state attorneys general, led by New York AG Barbara Underwood, sent a joint letter to the CFPB, urging the bureau to retain its public database of consumer complaints. In the letter, the AGs said a public consumer complaint database is consistent with the CFPB’s statutory mandate in the Dodd-Frank Act, The law requires the agency to [Includes three briefs] ...

With razor-thin production margins becoming the norm this year, some originators are thinking about, or moving ahead with plans to trim the compensation levels of their most valuable asset: loan officers.

The incidence of defects in mortgage loan applications has decreased significantly in the last five years, according to First American Financial’s Loan Application Defect Index.

A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]

Are mortgage lenders in the financial services business? The answer from the Internal Revenue Service on that question will determine whether lenders organized as pass-through entities can take a significant deduction included in the Tax Cuts and Jobs Act.

Originations of purchase mortgages are expected to increase this year even though interest rates and home prices continue to rise. “The underlying demand for buying a home is holding up, and will continue to do so, as long as the economy is generating solid job and income growth,” said Sam Khater, chief economist at Freddie Mac.

Industry groups and lawmakers have turned their attention to the GSEs’ pilot programs and how they’re being implemented. Many argue that as of late, pilot programs such as recent initiatives involving mortgage insurance and home rentals are being launched without much transparency.This week, the Mortgage Bankers Association penned a letter to the Federal Housing Finance Agency recommending the regulator increase the level of transparency for new products and activities the GSEs take on. The trade group noted it’s concern about new initiatives which raised “significant” questions as whether they have the public’s best interest in mind. There’s also some unease about Fannie Mae and Freddie Mac possibly infringing on the primary market.

Industry insiders are continuing to play the speculation game regarding who might replace Mel Watt as director of the Federal Housing Finance Agency, a position that holds immense power given the role Fannie Mae and Freddie Mac play in the housing market. So far, analysts and lobbyists have identified a handful of potential candidates who might replace the director when his five-year term ends early next year, including Treasury counselor Craig Phillips; Mark Calabria, chief economist to Vice President Mike Pence; and Michael Bright, EVP of Ginnie Mae, among others. Another candidate who has been mentioned is Comptroller of the Currency Joseph Otting, who was sworn into that post in late November of last year.

There are benefits to merging Fannie Mae and Freddie Mac with the Department of Housing and Urban Development, according to one conservative think tank opining on the future of the GSEs.The American Action Forum said because the government-sponsored enterprises are being funded in part by taxpayers, and treated as being on the federal budget, the goal should be to align policy with the budget. “This raises an intriguing possibility. Merge Fannie and Freddie into the Department of Housing and Urban Development,” said Douglas Holtz-Eakin president of the AAF and a former director of the Congressional Budget Office in the early 2000’s.

Some banks may be manipulating prices in Fannie Mae and Freddie Mac unsecured debt, according to several investigations launched late last week.The Department of Justice has reportedly opened a criminal investigation while the law firm of Hagens Berman is investigating the potential fraud.They suspect that traders from several banks have engaged in a coordinated attempt to manipulate pricing. Hagens Berman attorneys encourage investors and whistleblowers to report any information about potential antitrust violations and other fraud in the bond trading market to a tip line they recently established. This type of fraud has a large impact on market participants, according to Steve Berman, managing partner of Hagens Berman.