Top housing-finance policy developments in 2023

Common themes in government-related actions with implications for home mortgages in 2023 were moves that affected the economics of the business, surprising legal developments that could overturn traditional dynamics and upheaval in the banking system. Federal Reserve actions related to monetary policy were clearly the big driver, with the latest change at the time of this writing being a statement forecasting an eventual cut in short-term interest rates, something that hadn't been seen in a while. Other government-related agencies that control large sectors of the mortgage market took some steps that hit the bottom line of businesses in the financial services industry and consumers' wallets as well. Read on for some of the biggest developments in housing finance over the course of last year, with comments from some market experts about why they were, or will be, important.

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Hackers obtained Social Security numbers in Fidelity cyberattack

Following a pre-Thanksgiving cyberattack at parent company Fidelity National, mortgage subservicer Loancare disclosed the degree of data compromise that has occurred from the incident thus far. In a filing with the Maine attorney general's office last week, Loancare revealed personal identifiable information, including Social Security numbers, of 1,316,938 customers were exposed in the event, which occurred on Nov. 19.? In correspondence being sent to affected clients, the Virginia Beach, Virginia-based company said it "determined that an unauthorized third party exfiltrated data from certain FNF systems," while noting it had not seen any fraudulent use of customer information thus far.

Home price growth slows but should keep rising in 2024

The Federal Housing Finance Agency's Home Price Index increased in October from September, but at a more modest pace than what the S&P CoreLogic Case-Shiller data showed. This data also highlighted some profound regional variations during the month. The FHFA index increased 0.3% month-to-month and by 6.3% versus October 2022, the agency reported.? Between August and September it grew by a revised 0.7%. The end-of-third quarter release is used by the FHFA to set the conforming loan limits for the following year.

Basel III endgame: 5 things to watch in 2024

The Basel III endgame is entering its end stage. Tuesday, Jan. 16 is the deadline for the public to comment on a joint proposal from the Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency that would rewrite capital obligations for all banks with at least $100 billion of assets.? Put forth in July, the proposal would force the affected banks to increase their aggregate Tier 1 equity capital by 16%, with the largest, global systemically important banks bearing the brunt of the increase, seeing their capital levels bumped by 19%. Banks have pushed back hard against the potential rule change, as have congressional Republicans and other interest groups outside the banking space, including those representing the real estate sector.?

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