FRB

Browse articles from all of our Newsletters related to FRB.

January 19, 2018 - Inside MBS & ABS

The Fed’s ‘Great Unwind’ Will Likely Lag Due to Payment Uncertainties, Aspects of the TBA Market

The plan of the Federal Reserve’s Open Market Committee to shrink the U.S. central bank’s huge balance sheet probably will unfold with a bit of a lag because of the uncertainty surrounding principal payments and the forward-settling nature of the to-be-announced MBS market, according to economists at the Federal Reserve Bank of New York.


January 8, 2018 - Inside the CFPB

CFPB, Other Feds, to Cut Lenders Some ‘Good Faith’ Slack on HMDA

As 2017 came to an end, the CFPB and other federal prudential regulators informed the industry they would implement a “good faith efforts” enforcement philosophy toward lender compliance with the new requirements under the Home Mortgage Disclosure Act that took effect Jan. 1. The CFPB in 2015 put out its rule under which financial institutions were required to collect and report new mortgage data points for loans made after Jan. 1, 2018. This past August, the bureau released a final rule that clarified some reporting requirements, increased the threshold for collecting and reporting data on home equity lines of credit for two years, and made various technical corrections. “The bureau recognizes the significant systems and operational challenges needed to meet ...


December 15, 2017 - Inside Mortgage Trends

Price-to-Income Ratio Seen as Good Risk Gauge

Mortgages with high home price-to-income ratios tend to perform worse than mortgages with lower PTI ratios, according to economists at the Federal Reserve. The analysts suggest that PTI ratios are a helpful tool for gauging mortgage risk by tracking housing affordability. “Banks that have greater exposure of mortgages to high PTI regions have higher mortgage delinquency and charge-off rates and significantly higher probabilities of failure, even after controlling for ...


December 15, 2017 - Inside MBS & ABS

Janet Yellen’s Last Hurrah: A Final Rate Hike, And Don’t Expect More Info on the Great Unwind

The three most notable aspects of Janet Yellen’s final press conference as the chair of the Federal Re-serve were the expected comments in support of the central bank’s 25 basis point rate increase, positive economic expectations of pending tax reform efforts, and confirmation the Fed is unlikely to provide much information about its balance sheet reduction going forward.


Poll

How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.
11 to 30. We’re feeling slightly bullish.
31 or more. We’re in expansion mode.
None. We’re staying right where we are, for now.
We’re cutting back.

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