TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 56 of 67

TH E M R EP O RT | 55 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST GOVERNMENT A Look Back U.S. Rep. Jeb Hensarling recently announced he will not seek re-election. We take a look back at his housing stances. U .S. Rep. Jeb Hensarling (R-Texas), who current- ly chairs the Financial Services Committee, announced recently that he will not seek re-election in 2018. "Today I am announcing that I will not seek re-election to the US Congress in 2018. Although service in Congress remains the greatest privilege of my life, I never in - tended to make it a lifetime com- mitment, and I have already stayed far longer than I had originally planned," Hensarling wrote in a statement, according to the Dallas Morning News. Despite his retirement an- nouncement, Hensarling expressed how more work remains at the House Financial Services Committee in the areas of housing finance reform, regula- tory relief, cybersecurity, and capital formation. "Furthermore, important work remains in the Congress as a whole—especially pro-growth tax reform. I look forward to continuing this work on behalf of the people of the 5th District of Texas and all Americans," Hensarling wrote. Looking back at Hensarling's financial positions, what could this announcement mean for the housing industry? Hensarling has long advocated replacing Dodd-Frank, the reform package designed to limit the high-risk practices that triggered the financial crisis, and has often been at odds with Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. Additionally, Hensarling once called the CFPB "the most powerful and least accountable Washington bureaucracy in history." To defend himself and the bureau, Cordray responded at the time, "Years of uneven federal oversight on behalf of consum - ers allowed a lot of bad behavior to go unchecked. As the inde- pendent consumer watchdog, we are solely focused on the job Congress gave us of assuring that these markets are fair, transparent, and competitive and consumers have access to sound financial products and services." However, on June 8, 2017, the House of Representatives passed the Financial CHOICE Act, origi - nally introduced by Hensarling, as it significantly amending the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, MReport reported. In mid-April, Republicans introduced the bill, arguing that Dodd-Frank and the subsequent regulation that ensued harms eco - nomic growth and ultimately, the American consumer. According to the proposal, Dodd-Frank's particu- lar brand of regulatory complexity and government micromanagement made basic financial services less accessible to small businesses and lower-income Americans. Hensarling has continuously fought for what he is passionate about during his time in office and although his time is coming to a close, he assures the public that he will continue to press for what he believes is best for the financial services of the American people. "Although I will not be running for re-election, there are 14 months left in my congressional term to continue the fight for individual liberty, free enterprise, and limited constitutional government—the causes for which I remain passion - ate," Hensarling wrote. The industry will have to wait and see how the rest of Hensarling's term pans out to determine the type of impact the end of his tenure will truly have. Hensarling has represented Congressional District 5 in the Dallas area since he was elected in November 2002. Rep. Pete Sessions (R-Texas) said in a statement that through - out his time in Congress, Hensarling has always been a conservative, principled leader, the Dallas Morning News reported. "I want to thank him for his service to our country, the Texas delega - tion, and to our conference as Financial Services Chairman," Sessions said. "I am proud to call Jeb not only my colleague but my dear friend." Mortgage Rates Fall Month- Over-Month Data from the FHFA sheds light on the market through several indices examining new contracts. B ased on new data released by the Federal Housing Finance Agency (FHFA), interest rates have de - creased for conventional purchase- money mortgages from August to September, based on several indices of new mortgage contracts. The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes Index closed in late September was 4.00 percent. This is down 5 basis points from the 4.05 percent rate in August. For conventional 30-year fixed rate mortgages that were $424,100 or less, the average interest rate was 4.14 percent. This is down 5 basis points from 4.19 percent in August. The average loan amount for all loans in September was $299,500, which is down $10,100 compared to the average loan amount of $309,600 in August. For the average interest on all mortgage loans, the rate was 3.99 percent, which is down 5 basis points from 4.04 in August. The ef - fective interest rate on all mortgage loans landed at 4.08 percent in September, which is down 6 basis points from 4.14 percent in August. This rate accounts for the additions of initial fees and charges over the life of the mortgage. Indices are based on small monthly surveys taken by mortgage lenders and are not guaranteed to be representative. This sample is considered a convenience sample rather than statistical. The indices include 15-year mortgages and adjustable-rate mortgages un - less specified otherwise and the September 2017 values from the FHFA are based on 4,445 reported loans from 17 lenders which include savings associations, mortgage companies, commercial banks, and mutual savings banks.

Articles in this issue

Archives of this issue

view archives of TheMReport - MReport_December2017