TheMReport

September 2012

TheMReport — News and strategies for the evolving mortgage marketplace.

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LOCAL EDITION SECONDARY MARKET enterprise or bank securities holdings." FHFA said that in relation to Fannie Mae and Freddie Mac, the use of an eminent domain program could result in a cost to taxpayers. FHFA also stated it had the bill by a 20-point margin, while Democrats displayed a stronger preference with an 83-point margin. Independents weighed in, showing a 50-point margin in favor of the act. Lake Research also asked significant concerns regarding a "chilling effect on the extension of credit to borrowers seeking to become homeowners and on investors that support the hous- ing market." As conservator for the GSEs those responding to evaluate the Consumer Financial Protection Bureau (CFPB), and voters sided with the organization by a 40-point margin. Additionally, 66 percent of and as a regulator for Federal Home Loan Banks, FHFA stated it may need to take action "to avoid a risk to safe and sound operations and to avoid taxpayer expense." Along with concerns, the agency also raised several ques- tions, including the constitu- tionality of the proposed use of eminent domain; the effects on holders of existing securities; and the impact on millions of negoti- ated and performing mortgage contracts. FHFA said it is accepting input on the topic through its Office of General Counsel no later than September 7. IHS Economists Evaluate Home Sales Statistics WEIGHING IN ON THE CENSUS BUREAU'S HOME SALES DATA, ANALYSTS FROM IHS EXPLAINED THE STATISTICS' SIGNIFICANCE AND IMPLICATIONS. COLORADO // Compared with the two-year high for new home sales in May, June's figures were met with disappointment, and the Census Bureau reported new home sales dropped 8.4 percent month-over-month to 350,000 in June compared with an upward- ly revised 382,000 for May. In an IHS Global Insight port as mixed. "Still, one should never get too excited (or de- pressed) by the latest new home sales figures because they are not estimated very well," IHS noted, adding that it prefers moving averages or quarterly figures because such estimates "iron out volatility and highlight trends." IHS offered up examples and Thus, IHS described the re- stated, "A three-month moving average shows sales inching up nationally. Regionally, three- month sales have picked up smartly since the start of the year in the West and Northeast (despite June's sales plunge) but are wavering in the Midwest and South. "For the quarter," the firm commentary, economists Patrick Newport and Michele Valverde pointed out that figures for March, April, and May were all revised up, and that sales were up in the Midwest and West but down in the Northeast and South. percent and 2.8 percent on a year-on-year basis," the research- ers said. Voters Prefer Dodd- Frank Act A RECENT SURVEY FROM LAKE RESEARCH PARTNERS DEMONSTRATES THAT POPULAR OPINION FAVORS THE CONTROVERSIAL BULKY LEGISLATION PACKAGE. DISTRICT OF COLUMBIA// added, "national sales climbed to their highest level since the fourth quarter of 2009. Quarterly sales rose in the Northeast, Midwest, and West but fell in the South. Home prices were also up. "The second-quarter average and median prices were up 4.2 A new study from Lake Research Partners is revealing the popular perspective on the controversial Dodd-Frank Act. The poll, which was commis- sioned by the AARP, Center for Responsible Lending, Americans for Financial Reform, and the National Council of La Raza, showed that voters are generally in favor of the legislation. Generally, voters participating in the survey supported Dodd- Frank by a 53-point margin. Republican respondents favored participants and 69 percent of independents agreed the "CFPB is needed." Commenting on the report, Lake Research's David Mermin said, "This poll shows that American voters broadly and strongly support both Wall Street reform and the CFPB. And they strongly favor specific components of the CFPB. After hearing arguments in support and in opposition, voters across party lines solidly favor the reform law." Specifically, the poll found that tougher rules and enforcement for Wall Street's financial companies was top of mind for voters, with 73 percent supporting the regula- tions targeting the sector. A large majority, 92 percent, also favored policies that would mandate more transparent information on rates, terms, and fees from banks, mortgage lenders, credit card companies, and student and auto loan providers. Lisa Donner, executive direc- tor of Americans for Financial Reform, noted, "The message for Congress is unmistakable: Voters across the board are intensely supportive of stronger consumer protections. Strong majorities of voters across party lines say we need tougher rules for Wall Street and they do not want Congress to override a state's ability to enforce stronger consumer protections at the state level." Gary Kalman, director for the Center for Responsible Lending's federal policy division, spoke out as well, stating, "Bipartisan sup- port among voters should be no surprise: Who hasn't been hurt by the economic downturn? People get that commonsense oversight could have prevented it." THE M REPORT | 79 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET

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