ABA stands to be an “influencer” in the debate not just because of the size of its bank membership base, but because depositories rank a close second to the Federal Reserve among the largest investors in agency securities.
The CFPB recently announced its plan to review and evaluate the effectiveness of its ability-to-repay/ qualified mortgage rule, as per the requirements of the Dodd-Frank Act, and is soliciting interested parties for their input. “We are asking the public to comment on our plan, to suggest sources of data, and generally to provide information that would help with the assessment,” bureau officials said in a blog posting revealing the plan. They added that the agency views the pending review and evaluation as an opportunity. “Conducting the assessment will advance our knowledge of the benefits and costs of the key requirements of the ATR/QM rule,” said the officials. “The assessment will also provide the public with information on the mortgage lending market, ...
The American Bankers Association sent a letter to Secretary Treasury Steve Mnuchin late last month detailing a handful of key reforms it believes are needed to the ability-to-repay/qualified mortgage rule promulgated by the CFPB. The trade group’s correspondence was in response to President Trump’s Executive Order 13772 and the circulation of his core principles for regulating the U.S. financial system.For starters, the ABA said all mortgages originated and held in a bank’s own portfolio should be considered QM, and should be afforded safe harbor legal treatment. “This approach is consistent with safe lending principles because holding loans in portfolio means that the bank is retaining 100 percent of the risk on that loan,” said the organization. Banks will offer ...
Capital Alpha projects that the “emerging reform thrust” might emulate ideas promulgated by the Mortgage Bankers Association, which is adamantly opposed to recap and release.
Some $247.0 billion of subprime mortgages were outstanding at the end of the first quarter of 2017, according to estimates by Inside Nonconforming Markets.
A surging home-purchase market helped boost new single-family business volume at Fannie Mae and Freddie Mac in May, according to a new ranking and analysis by Inside The GSEs.Together, the two companies issued $62.03 billion of single-family mortgage-backed securities in May, an unspectacular 6.3 percent increase from April. In fact, May’s volume was the second lowest monthly production of the year. But that’s because the early months of 2017 were still heavy with refinance business. Purchase-mortgage business at Fannie and Freddie was up a solid 15.5 percent from April, hitting $36.78 billion, tops so far in 2017. Meanwhile, Fannie and Freddie securitized just $23.98 billion of refinance loans in May.
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