FHFA will require preapproval for new Fannie Mae, Freddie Mac products
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"The final rule clarifies how FHFA will conduct assessments of new activities and products proposed by the Enterprises," the agency's director, Sandra Thompson, said in a press release. "Enterprise activities can have significant effects on the mortgage market, consumers, and industry stakeholders, and today's rule further refines FHFA's process to ensure activities continue to serve the Enterprises' mission while maintaining high standards of safety and soundness." The final rule goes into effect 60 days after publication and will replace an interim rule in place since July 2, 2009. Fannie Mae and Freddie Mac pilot programs, and any modifications of duration or volume made to them, are considered new activities subject to this rule. In July, House Republicans called on Thompson to enact measures to ensure that the GSEs don't overstep their legal bounds when moving into new products and activities.
Forbearance was flat in the latest month tracked by the Mortgage Bankers Association, but hints of near-term weakness in certain parts of the market are growing more consistent. The share of loans with forborne payments in November matched October's 0.7% and loan performance in general was historically strong. However, a pattern of very slight upticks in the first-time buyer segment served by government loan programs is taking shape. The forbearance rate for loans in government-backed Ginnie Mae securitizations, a sector which is dominated by mortgages insured by the Federal Housing Administration, rose 5 basis points to 1.46%. The equivalent for mortgages backed by government-sponsored enterprises Fannie Mae and Freddie Mac inched up by one basis point to 0.32%.
In recent weeks there had been murmurs among lobbyists that the legislation, the Improving Access to the VA Home Loan Benefit Act of 2022, would be pushed through during the lame-duck session. It was passed unanimously and now heads to President Biden's desk to be signed into law. Under the legislation, which was introduced in mid-May by Sen. Dan Sullivan R-Alaska, and Rep. Mike Bost, R-Illinois, the VA will be required to update regulations, requirements and guidance related to appraisals. The agency will also have to codify the use of desktop appraisals. Appraisals for VA loans have been a sore subject in the mortgage industry, with many claiming that the process is both costly and timely, which has made VA borrowers less competitive in the housing market.
The Kalamazoo, Michigan-based lender and servicer will terminate approximately 59 employees at its Portage, Michigan office on Feb. 12, 2023, according to a Worker Adjustment and Retraining Notification. The filing last week to the Michigan Department of Labor and Economic Opportunity indicated at least eight managers would be cut, although it didn't reveal if loan officers or underwriters would be affected. None of the impacted personnel are represented by a union nor have bumping rights regarding seniority. The WARN was filed ahead of the required 60-day notice , and staff were informed of the layoffs last week, according to the disclosure.?
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Lower mortgage rates for much of November brought some purchasers of newly constructed homes back into the market, the Mortgage Bankers Association said. Its builder application survey for November was up 1% from October , although still down 25.2% from November 2021. The data is not seasonally adjusted. It is the first time application activity increased on a month-to-month basis since August. Meanwhile, November's residential starts data, also released on Dec. 20, was down 0.5% , while permits for construction of one-family homes fell 7.1%, the weakest pace since 2020.
HomeVestors of America, the firm behind the ubiquitous "We Buy Ugly Houses" trademark, is accusing Warner Bros. Discovery of trademark infringement, among three other counts, over its HGTV show "Ugliest House in America." The Dallas-based HomeVestors claims to hold over 30 trademarks around the "Ugly" phrasing, according to the complaint filed last week in the U.S. District Court for the District of Delaware. "Most of the shows center around little more than making fun of homes and home design," said HomeVestors in a press release last week. "The nature of this television show does not align with HomeVestors' values or brand identity." HomeVestors, founded in 1996, claims to be the nation's largest professional home buying franchise with over 125,000 homes purchased.
The Consumer Financial Protection Bureau is ordering Wells Fargo to pay $3.7 billion for violating consumer protection laws — a major penalty that also clears some of the megabank's long-standing legal troubles. The order covers "widespread mismanagement" of auto loans, mortgages and deposit accounts, with the agency saying the $1.9 trillion-asset bank wrongfully foreclosed on homes, illegally repossessed vehicles and charged customers surprise fees.? "Wells Fargo's rinse-repeat cycle of violating the law has harmed millions of American families," CFPB Director Rohit Chopra said in a news release Tuesday, calling the action an "initial step for accountability and long-term reform of this repeat offender."?
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