TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/57493
MONTH IN REVIEW Voter's opinions prompt politicians to harp on the real estate and mortgage industries, while the government's bulky servicer settlement makes headlines around the globe. February 21 CFPB Launches Small Business Panel The Consumer Financial Protection Bureau took steps to engage mortgage lenders by forming a small business panel to review the integration of mortgage disclosure requirements into a single uniform document. The Dodd-Frank Act obli- gates the bureau to stream- line conflicting rules and statutory requirements from the Real Estate Settlement Procedures Act and Truth- in-Lending Act. The CFPB billed the panel as a way to increase transparency with mortgage lenders. February 15 HUD and CitiMortgage Reach Settlement Agreeing to pay the Department of Housing and Urban Development more than $150 million, CitiMortgage settled claims that the company qualified an estimated 30,000 bad loans for government insur- ance. U.S. Attorney Preet Bharara said of the deal, "For far too long, lenders treated HUD's insurance of their mortgages like they were playing with house money . . . We are pleased that . . . CitiMortgage has ac- cepted responsibility for its conduct and agreed to pay damages in an amount that will significantly compensate HUD in this case for losses to the FHA insurance fund." February 14 City of St. Paul Withdraws Fair Housing Case Showing approval for the Minnesota city's decision to discontinue its pursuit of a fair housing case in the U.S. 14 | THE M REPORT Supreme Court, the National Fair Housing Alliance's president and CEO, Shanna L. Smith, said, "Civil rights advocates and the U.S. government have utilized disparate impact under the Fair Housing Act for over 40 years to help address mort- gage lending and insurance redlining practices . . . . The city's decision will keep this vital part of the law viable for future generations." February 9 Data Report Shows High Home Affordability in Midwest The latest quarterly report by the National Association of Realtors (NAR) demonstrated improving conditions in the majority of metropolitan areas, with rising sales and lower inventory creating more balanced circumstances. From the Dakotas and Nebraska to Oklahoma and Texas, stable home price trends continue to result from stronger job creation, ultimately creating record highs in home affordability, according to the report. The NAR housing affordability index rose to a record high of 184.5 in 2011, based on the relationship between various sets of data. HOME SWEET HOME BY RYAN SCHUETTE February 2 Political Pressure Prompts Housing Initiative On Capitol Hill, a plan was released that would reduce the cost burden for refinanc- ing borrowers by eliminating the need to submit appraisal and tax forms to lenders and the GSEs, effectively removing manual appraisers from the process. Without referencing any recent prob- lems for the FHA, the White House notably highlighted several measures that it said would help relieve pressure for the agency, which con- tinues to see capital diminish amid historically low home prices and a high number of defaults. February 1 Homeownership Rates Fire Industry Feedback Many mortgage and housing industry professionals remain concerned about the future of homeownership, and new numbers released by the [U.S. Department of Commerce] drew heavy feedback. Paul Diggle, property economist for consultancy group Capital Economics, said, "The share of Americans who are willing and able to own their own home is still falling . . . . With house prices still falling for now, it will be awhile yet before homeownership is once again seen as an essential part of the American Dream." January 25 Extension of Low Interest Rates Draws Criticism Despite commentary from industry insiders, many of whom were adamant that the Federal Open Market Committee's (FOMC) deci- sion to extend historically low interest rates until 2014 would serve as a disin- centive for investors, the Federal Reserve stood behind the FOMC's plan. The Fed noted it "expects economic growth over coming quarters to be modest and consequently anticipates that the unem- ployment rate will decline only gradually." January 20 Candidates Face Special Struggle in States Still Suffering from the Housing Crisis While candidates are sure to trumpet their job and economic plans while on the campaign trail, a report from the Progressive Policy Institute indicates that politicians will likely need to address the hole in household wealth left over from the financial crisis when targeting voters in hard-hit states. The analysts behind the study, Jason Gold and Anne Kim, had some advice for candidates, recommending they "resist the temptation to succumb to an election- year 'easy fix.'" The views expressed by Home Sweet Home solely reflect the views of the cartoonist and not the views of MReport, the Five Star Institute, or any affiliates.