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Tuesday, February 26, 2013

Bipartisan Policy Center Releases Housing Reform Plan

The Bipartisan Policy Center’s Housing Commission yesterday unveiled a plan to wind down Fannie Mae and Freddie Mac and significantly increase private lenders’ participation in mortgage-market financing. ABA President and CEO Frank Keating was a member of the commission and gave the opening remarks at the briefing -- carried live by C-SPAN -- where the plan was unveiled.

The commission’s report “proposes a new housing finance system that calls for a far greater role for the private sector, a continued but limited role for the federal government, the elimination of Fannie … and Freddie … , and reform of the Federal Housing Administration to improve efficiency and avoid crowd-out of private capital,” according to the BPC’s press release.

Under the commission’s plan -- intended to jump-start debate and help build a consensus for change -- banks and other private companies would take the lead in originating mortgages, and also in issuing mortgage-backed securities. Those firms and private insurers would bear the risks of default, except in extreme cases when they are unable to absorb further losses.

In that case, a “public guarantor” funded by premium payments would backstop financing for loans up to $275,000, which is lower than the current $625,500 loan limit Fannie and Freddie currently finance.

“The report is a strong one, which I believe charts a course for a much-needed return of the private market to housing finance. It also states where government involvement is needed it is explicit, paid for, and limited,” Keating said in a statement.

“In the coming months, the commission will continue its important work on housing policy by reaching out to policymakers and key stakeholders and holding forums across the country,” he explained.


---ABA Daily Newsbytes

Friday, February 22, 2013

Friday Rate Update

Mortgage Rates Rise

The average interest rate on 30-year, fixed-rate mortgages rose to 3.56 percent this week from 3.53 percent last week, Freddie Mac reported yesterday. A year ago, rates for 30-year mortgages averaged 3.95 percent.

Wednesday, February 20, 2013

CFPB and the Community Banks

Gauging the impact of new financial regulations on the nation’s community banks is a top priority for regulators, according to testimony from a congressional hearing last week. The FDIC is focused on addressing megabank risks while being sensitive to the regulatory impact on community banks, FDIC Chairman Martin Gruenberg told the Senate Banking Committee.

Comptroller of the Currency Thomas Curry said he has directed OCC staff to look for ways to minimize potential burdens on community banks and to organize and explain the agency’s rulemaking documents to facilitate community bankers’ understanding of how the rules affect their institutions.

Consumer Financial Protection Bureau Director Richard Cordray said the bureau knows community banks might be more likely to retreat from the mortgage market if the new rules are too burdensome. He said the CFPB is working to tailor its rules to encourage small providers to continue providing credit and other services.


---ICBA

Tuesday, February 12, 2013

FTC Study Says 1 in 4 Consumers Had Error in a Credit Report From Major Agency

One in four consumers found an error in a credit report issued by a major agency, according to a study released Monday by the Federal Trade Commission. The study also said that 5 percent of the consumers identified errors in their reports that could lead to them paying more for mortgages, auto loans or other financial products. The study looked at reports for 1,001 consumers issued by the three major agencies — Equifax, Experian and TransUnion. The FTC hired researchers to help consumers identify potential errors.

From "FTC Study Says 1 in 4 Consumers Had Error in a Credit Report From Major Agency"
Associated Press (02/11/13) Wagner, Daniel

--BAI

Friday, February 8, 2013

Friday Rate Update

Mortgage Rates Unchanged

The average interest rate on 30-year, fixed-rate mortgages remained unchanged a 3.53 percent this week, Freddie Mac reported yesterday. A year ago, rates for 30-year mortgages averaged 3.87 percent

Monday, February 4, 2013

Congratulations World Champions!


Small Lenders Ride U.S. Mortgage Wave as Big Banks Cut Back

Big banks retrenching and cutting back on mortgage lending after the financial crisis have created an opportunity for smaller firms and community banks such as Guaranteed Rate, an independent mortgage lender. The advent of smaller banks is beneficial for customers, and several smaller lenders say reduced costs, low interest rates, and faster processing times permit them to price more aggressively than the larger banks. Small lenders also are leveraging federal guarantees to make home loans geared toward borrowers with low incomes to a greater degree than the big banks.

From "Small Lenders Ride U.S. Mortgage Wave as Big Banks Cut Back"
Reuters (02/04/13) Sussman, Anna Louie


--BAI

Friday, February 1, 2013

Friday Rate Update

Mortgage Rates Rise


The average interest rate on 30-year, fixed-rate mortgages rose to 3.53 percent this week from 3.42 percent last week, Freddie Mac reported yesterday. A year ago, rates for 30-year mortgages averaged 3.87 percent.

---ABA Daily Newbytes