What's on mortgage bankers' wish list for servicing rules

With the possibility of recession looming, an industry trade group has asked government entities to apply temporary foreclosure-prevention methods from the pandemic on a more permanent basis or to expand their application. The Federal Housing Finance Agency's plan to broaden the use of deferrals marks one aspiration in this area that's recently been fulfilled. There are others as well. The Mortgage Bankers Association would like to see the Department of Veteran Affairs bring back the standalone partial claim, and thinks servicing rules under Reg X should be revamped. What follows are thoughts from the MBA's Brendan Kelleher, associate director, loan administration; and Justin Wiseman, vice president and managing regulatory counsel, on what the benefits of the expanded leeway for repayments, and other potential measures, might be. We also looked at potential obstacles and, where recommendations are still under consideration, asked agencies about their likelihood of occurring.

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Cornerstone Capital Bank starts adding subservicing clients

Toby Wells, a longtime industry servicing executive, oversaw the development of the new business line at Cornerstone Capital Bank. He also helped the bank's predecessor, Cornerstone Home Lending, bring servicing in-house last year. Prior to joining Cornerstone, Wells was the CEO of Specialized Loan Servicing and continued to work with it after SLS became part of Computershare. Cornerstone's new subservicing offering includes outreach to borrowers through digital strategies based on a distinct amalgamation of vendor technology that the company brought together in consultation with communications experts.

Tech woes deflate momentum in Western housing markets

Home price growth increased by its slowest pace since 2019 in February, largely driven lower by annual depreciation in several Western states, according to CoreLogic. But while seven states, all located in the Pacific and Mountain regions, posted drops in property values from a year ago, housing costs in other parts of the country reported growth by as much as 11% in "a tale of two housing markets," according to CoreLogic Chief Economist Selma Hepp. "Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply," she said in a press release.?

CFPB to appeal its Townstone redlining case loss

The Consumer Financial Protection Bureau is appealing a judge's ruling to dismiss its redlining lawsuit against Chicago-based Townstone Financial. In February, Judge Franklin Valderrama of the U.S. District Court for the Northern District of Illinois granted the lender a victory, declaring the Bureau's action was invalid because the Equal Credit Opportunity Act applies only to home loan applicants, not to potential applicants. The case was dismissed with prejudice, which meant the CFPB could not refile the complaint. However, the Bureau still maintained a right to appeal. On April 3, it filed a notice with the Seventh Circuit Court of Appeals stating it would do that.

Massachusetts to make remote online notarizations permanent

Massachusetts has become the latest state to update laws that make remote online notarizations for real estate closings and other business transactions permanent after the signing of new legislation last week. Governor Maura Healey authorized a provision, which was included in the state's supplemental budget, granting permission to notaries in the Bay State to perform RONs beginning in January 2024. Massachusetts joins 44 other jurisdictions with similar legislation on their books, according to data from the American Land Title Association.?

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