The CFPB last week moved to restructure how the agency enforces fair lending laws, consolidating that function under the director’s office, which is headed by interim appointee Mick Mulvaney. In a statement provided to Inside the CFPB, John Czwartacki, senior advisor to the acting director, said: “The bureau’s statutory mandate includes the supervision and enforcement of fair lending laws and regulations [and] the bureau will continue to perform those functions.” He added: “The fact is, it never made sense to have two separate and duplicative supervision and enforcement functions within the same agency – one for all cases except fair lending, and the other only for fair lending cases. By announcing our intent to combine these efforts under one roof, we ...

House Rules Committee Expected to Clear Legislation to Tweak Points and Fees Definition under the ATR Rule. The House Rules Committee is expected to clear sometime this week H.R. 1153, “The Mortgage Choice Act,” legislation that would make two adjustments to the Truth in Lending Act (TILA) definition of points and fees to ensure greater consumer choice in mortgage and settlement services under the ability-to-repay/qualified mortgage rule.... OIG Has Mixed News for CFPB on Mobile Device Data Security. The CFPB got a dinged report card from the Office of Inspector General in terms of the security of mobile technology that bureau staff use. “Mobile devices help CFPB staff carry out their duties, but the portability of these devices heightens the risk of loss or theft of IT equipment and data,” said the OIG in explaining its motivation for evaluating the CFPB’s mobile encryption practices....

Reforming the housing-finance system under the plan from Sen. Bob Corker, R-TN, includes having at least a handful of guarantors, winding down the GSEs and establishing a mortgage insurance fund with private capital, according to a leaked draft making the rounds this week. The 80-page document seeks to promote competition in the marketplace by having five or six guarantors of conventional mortgage-backed securities, with none of them getting more than 20 percent to 25 percent of the market. Those new guarantors would be expected to launch within two years. Section 809 of the legislation spells out that “as promptly as practicable” the FHFA can greenlight Fannie Mae and Freddie Mac to “sell or transfer” their assets.

In the event that Congress can’t come to an agreement on fixing Fannie Mae and Freddie Mac, Treasury Secretary Steve Mnuchin said the department can take matters into its own hands. But he would rather leave it up to the lawmakers. “There are certain administrative options that we have,” he said, adding, “These entities are very complicated, and I would just say my strong preference would be to work with Congress on a bipartisan basis to reach a long-term solution.” Mnuchin reaffirmed his commitment to reforming the housing-finance system and support for the 30-year fixed-rate mortgage while testifying at a Committee on Banking, Housing, and Urban Affairs hearing Tuesday morning.

GSE shareholders rights group Investors Unite took issue with a recent op/ed that suggested the Trump administration is preparing to return to the same housing-finance market that purportedly caused the financial crisis. In a piece penned for the Wall Street Journal, the American Enterprise Institute’s Peter Wallison warned that the Treasury Department is going down the wrong road on GSE reform. However, IU said Wallison's fears that the Federal Housing Finance Agency and Treasury are “marching back to the 1930’s” are unfounded. The group said in a blog posting that conservatives like Wallison will always claim that “statist prescriptions to economic questions are inevitably doomed to failure and almost always make matters worse.”

Departing Federal Reserve Chair Janet Yellen quietly rode off into the sunset this week, with the Fed’s Open Market Committee deciding to keep interest rates unchanged, as expected. The fed funds target range remains at 1.25 percent to 1.50 percent.

The en banc panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled Wednesday in favor of PHH Mortgage in its long-running legal dispute with the Consumer Financial Protection Bureau over issues tied to the Real Estate Settlement Procedures Act.

The Consumer Financial Protection Bureau last year logged 988 servicemember complaints related to the origination and servicing of VA and FHA mortgages. CFPB data showed VA outscored FHA on the number of complaints, 740 to 248, respectively, in 2017. The top five reasons for servicemember complaints were trouble during the payment process, difficulty in paying the mortgage, loan servicing, applying for a purchase mortgage or refinance, and closing a loan. Other complaints were about loan modification and foreclosure, mortgage brokers, incorrect information, settlement process and costs, underwriting/credit decision, credit-reporting company’s investigation of a consumer problem, and improper use of a credit report. Abusive practices related to loan churning might not be reflected clearly in servicemembers’ complaints in 2017 compared to the previous year, but a deeper dive into the ... [Chart]

Legislation that would define loans held in portfolio by smaller banks as qualified mortgages garnered unanimous support at a markup in the House Financial Services Committee last week. H.R. 2226, the Portfolio Lending and Mortgage Access Act, was approved on a 55-0 vote. The bill has been kicking around in Congress for years and was modified at the markup to help win support in the Senate. Rep. Andy Barr, R-KY, introduced the legislation. He said it will “expand access to ...

While the House Financial Services Committee was busy last week passing a handful of mortgage-related bills, the full House passed legislation that would eliminate additional Home Mortgage Disclosure Act reporting requirements for smaller banks and credit unions as well as nonbanks.