If nonbanks and real estate investment trusts eventually gain access to the Federal Home Loan Bank system – and the discount borrowing window – they can credit the FHLBank of Chicago, which continues to push the membership issue in Congress.
The Mortgage Bankers Association has met with state regulators in an effort to speed implementation of transitional licenses for loan originators who move from banks to nonbanks or to a new state.
With nonbanks continuing to gain share in mortgage origination, servicing and securitization, their ability to raise fresh capital to appease government guarantors is becoming increasingly important – and comes at a difficult time.
The House of Representatives this week passed legislation extending the National Flood Insurance Program for another four months, while a House committee reported out a bill revising the definition of “points and fees” under the federal Truth in Lending Act.
The Consumer Financial Protection Bureau recently announced plans to create a “regulatory sandbox” to encourage consumer-friendly innovation in financial services. The mortgage industry sees it as an opportunity to enhance the emerging niche of loans that fall outside the qualified mortgage standard.
Fannie Mae recently announced plans to simplify its private mortgage insurance cancellation policy. In a letter that went out to lenders last week, the government-sponsored enterprise updated the different methods for verifying current property values.
Trends with housing inventory, home prices and interest rates appear to be holding back home sales and originations of purchase mortgages, according to industry analysts.
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