TheMReport — News and strategies for the evolving mortgage marketplace.
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the latest SECONDARY MARKET Or ig i nat ion The Conventional Single-Family Serious Delinquency Rate was 2.7 percent in July, down seven basis points. The Multifamily Serious Delinquency Rate was 0.18 percent, a drop of 10 basis points. Fannie Mae completed 11,870 loan modifications, bringing the year's total to 95,381. CFPB Names Deputy Director 2013 continues to be a year of ups and downs for Freddie's business. Acting deputy Steven Antonakes' position is made official. OCC Deputy Opens Up on Risk Management Deputy Darrin Benhart stresses the importance of multidimensional management strategies. and banks need a culture that promotes risk identification across business lines," he said. Benhart says home equity lines of credit (HELOCs) and collateral valuations are two key areas his office will be watching in the coming year. As the industry focused heavily on loss mitigation during the past few years, Benhart says valuations slipped under the radar somewhat. His office reviewed valuation procedures "in a number of institutions" and found several common problems, including lack of oversight of appraisal management companies (AMCs), inconsistencies in appraisal processes, and inadequate reviews of appraisals and evaluations. "Problems ranged from independence, qualifications, and training of reviewers to the scope and depth of reviews," Benhart said. Overall, Benhart expressed an optimistic outlook for the mortgage industry and economy as a whole, though he added, "we must remain vigilant not to let unmanaged risks slip back into the industry." The M Report se c on da r y m a r k e t S peaking at an industry conference in Phoenix, Arizona, Darrin Benhart, deputy comptroller for credit and market risk with the Office of the Comptroller of the Currency (OCC), said the changing regulatory environment requires mortgage lenders to consider a number of potential risks on different fronts. "As you well know, the list of mortgage-related reforms is extensive," Benhart said, naming the qualified mortgage (QM) and qualified residential mortgage (QRM) among them. "These reforms mean you will need an even greater emphasis on risk management techniques that not only look at credit risk, but also encompass operational and compliance risk," he said. While in the past, various aspects of risk were often considered and managed individually, Benhart says going forward, it is important for all risks to be monitored in a holistic manner. "Risk management groups today need to be multidimensional, H aving served in an acting capacity since January 2013, Steven Antonakes has been officially named deputy director of the Consumer Financial Protection Bureau (CFPB), the agency announced. "I am happy to announce that Steve will be the official deputy director of the bureau," said director Richard Cordray. "He has aptly led—and will continue to lead—our supervision, enforcement, and fair lending teams. Steve's experience, his knowledge, and his judgment are vital in helping us achieve our mission of fostering a thriving, sustainable marketplace for both consumers and responsible businesses." Antonakes' background includes more than two decades as a financial services regulator. He started his career in 1990 as an entrylevel bank examiner with the Commonwealth of Massachusetts Division of Banks. Since that time, he has served in numerous managerial capacities, including serving as former Commissioner of Banks Thomas J. Curry's deputy, before being appointed to take over that role himself. He joined CFPB in November 2010 as assistant director for large bank supervision and was named associate director for supervision, enforcement, and fair lending in June 2012. His stint as acting deputy director followed the departure of Raj Date. A na ly t ic s T he latest volume summary from Freddie Mac shows business continues to defy any sort of trend this year. After picking up slightly in June, the enterprise's mortgage portfolio shrank once again in July at a compound rate of 1.7 percent. Year-todate, the portfolio's average monthly growth rate is -1.2 percent. In 2013's first seven months, business has declined in four and grown in three. As of the end of July, the portfolio's ending balance was $1.94 trillion. Purchases and issuances dropped to their lowest point so far this year, totaling $42.3 billion. Year-to-date, 2013 purchases and issuances have totaled $318.3 billion. At the same time, Freddie's portfolio of mortgage-related securities and other guarantees continued to grow, expanding at an annual rate of 1.1 percent. Single-family refinance-loan purchase and guarantee volume was $26.7 billion in July, representing 69 percent of total single-family mortgage portfolio purchases or issuances. Relief refinance mortgages made up 32 percent of the GSE's total single-family refinance volume in July (based on unpaid principal balance). The single-family seriously delinquent rate dropped further, falling to 2.7 percent from June's 2.79 percent. Multifamily delinquency declined to a rate of 0.06 percent. Freddie Mac reported 6,354 loan modifications in July, bringing the year-to-date total to 46,244. s e r v ic i ng Freddie Mac's Portfolio Falls Back into Decline | 61