CFPB Salaries, FHA Solvency Act, MI Enters Risk Sharing, Dave Stevens: PATH is a Start, Scott Simon on GSE Guarantees, 2nd Home Deduction, Love for Janet, Wells Quits Mortgage JVs, FHFA and UBS, GDP Redefined, New Home Prices

mnc-bc-fay2

email signup          RSS News Signup          Fay Servicing          BC’s profile

———

(Is CFPB hiring? WOW read this) Those Excessive CFPB Salaries – BY PHIL HALL – …  The Washington Examiner recently ran an analysis of the salary data of the CFPB’s staff, … 56 CFPB employees have annual salaries that are higher than the $199,700 earned by Fed Chairman Ben Bernanke, while 19 CFPB employees earn salaries higher than the $223,500 received by Chief Justice John Roberts. Furthermore, 14 CFPB staffers have salaries that exceed the $227,000 earned by Vice President Joe Biden.  …  – Progress In Lending 
————
FHA Solvency Act headed to Senate floor – By Christina Mlynski – The Senate Banking Committee approved a bipartisan compromise measure Wednesday to ensure stability in the mortgage market while protecting taxpayers. – Housingwire

————
(MIs enter risk sharing fray) Fannie Mae Obtains Insurance on $5 Billion Pool of Mortgages – By Jody Shenn – Fannie Mae (FNMA) obtained insurance on a pool of about $5 billion of mortgages from National Mortgage Insurance Corp. as the government-controlled company seeks to expand its risk-sharing with private firms. – Bloomberg
————
Eminent Domain Battle Pits Homeowner Against Hospital – By Jody Shenn and John Gittelsohn – Bloomberg Businessweek 
and
“Tax Nightmare” of Eminent Domain Mortgage Seizures - Mike Shedlock – Gayle McLaughlin, mayor of Richmond, California is hell-bent on her plan to seize mortgages via eminent domain, then provide “mortgage forgiveness” for the homeowners. … Legalities aside, there are also huge tax consequences to consider. … – MISH’S Global Economic Trend Analysis     
————

Mortgage Industry Stakeholders Say PATH Act Has Some Flaws – By Patrick Barnard – David H. Stevens, president and CEO of the Mortgage Bankers Association, said that while the MBA supports the introduction of the PATH Act as a starting point for negotiating reforms, the group has serious concerns regarding some of the bill’s measures. – MortgageOrb eFeature 
————
How I Learned to Stop Worrying and Love the Government Guarantee – SCOTT SIMON – American Banker Bankthink
————
Mortgage interest deduction on second homes benefits lawmakers most – hattip to a friend – By BLOOMBERG NEWS Newsday.com 
————
REPORT: There’s A Letter Circulating In The Senate Supporting Janet Yellen As The Next Fed Head – SAM RO – Business Insider 
————
Wells Fargo Quits 8 Mortgage Joint Ventures, Cuts 300 Jobs – By Dakin Campbell & Noah Buhayar – Bloomberg 
————
FHFA reaches $885 million settlement with UBS – By Megan Hopkins  – … The agreement ends one of many cases filed against banks by the FHFA. The conservator for Fannie and Freddie alleged that the various banks violated federal and state securities laws when selling private-label RMBS to the housing agencies.  … – Housingwire 
————
(interesting view) Proposed Legislation Would Replace Fannie Mae, Freddie Mac – BY ANTHONY NARULA AND ROBERT SIEGEL – Mortgage Crisis Watch

————
(Advantage: Government – GDP redefined yet again) The ‘Knowledge Economy’ Will Soon Count As Investment — Making The US Economy Look Better – JASON LANGE, REUTERS – Business Insider

————
Buried in the June housing report, New Home prices down 11.5% from AprilOC Housing News

New Rentals Liquidity Source? 4 posts, Richmond CA Update, Time to Buy a House, QE Exit and Housing, No Foreign Bailout, Mel has Votes?, Old Versus Young, Great Non QM Summary, QE Exit Debate, JCHS Harvard Observations

mnc-bc-fay2

email signup          RSS News Signup          Fay Servicing          BC’s profile

———

New Rentals Liquidity Source? 4 posts

Investor activity to plummet, home sales volumes will dropOC Housing NewsLarge private-equity hedge funds will begin tapering their purchases of houses shortly. Prices have simply gotten too high, and with the flood of rentals from their previous purchases, rents are softening in many of the markets where these funds have been most active. … However, despite the apparent worsening of conditions for this investment class, some housing analysts are worried that investors will remain too active and possibly overheat prices. 
————
(another way for big rental owners to reduce their exposure?) Here We Go Again: Step Aside RMBS, Rent-Backed Securities Are Here, And With Them The Beginning Of The End – Submitted by Tyler Durden – Zero Hedge 
————
Blackstone Said to Discuss Rental-Home Bonds With Deutsche Bank - By Jody Shenn & Heather Perlberg – Bloomberg 
————
(5 charts tell story) US Rents Hit Record Highs As Homeownership Plunges To 18 Year Lows – Submitted by Tyler Durden – The American Homeownership Dream is officially dead. Long live the New Normal American Dream: Renting.Zero Hedge

————

OTHER NEWS:

SIFMA Statement on City of Richmond’s (CA) Threats to Use Eminent DomainSIFMA Newsroom 
and
Illegal Public Seizure of Mortgages Via Eminent Domain in the Spotlight – Mike Shedlock – MISH’S Global Economic Trend Analysis    – … The law requires the owner to receive “fair value” for the seizure. Of course it is the state that gets to define “fair value”. Richmond does not even want to pay fair value for the mortgages.  … 
————

(let’s buy a house!) Final July Consumer Sentiment increase to 85.1, Highest since 2007 – by Bill McBride – Calculated Risk 
————
Housing sparks a recovery, but could QE exit put out the flames? - By Christina Mlynski – Housingwire 
————
(4 great charts too) Despite Declining Deficit, Foreigners Aren’t Bailing Us Out, So the Fed Will Keep QE Going – Bud Conrad – Casey Research

————
Mel Watt Might Have the Votes – By Brian Collins and Mark Fogarty – WE’RE HEARING that the Senate is bracing for a fight over the confirmation of Rep. Mel Watt to be the new GSE regulator. And the North Carolina Democrat has a good chance of being confirmed next week. – National Mortgage News

————
Infographic: Getting to know the Millennials, the next generation of homebuyers
BY MARK K. HICKS · DEADLINENEWS.COM – hattip Broderick Perkins

and
(old take jobs from young) Payroll Employment for Age Group 18 to 29 Shows Fewer Full-Time Employment “Regardless of Education” – MIKE SHEDLOCK – A Gallup Poll on US Payroll Employment for Age Group 18 to 29 shows Fewer Young Adults Holding Full-Time Jobs in 2013. – MISH’S Global Economic Trend Analysis 
————
(Non QM Mortgage Market – great summary) Misfit Borrowers Attracting Lenders as Housing Revives  By John Gittelsohn & Prashant Gopal – Bloomberg – hattip Rob Chrisman

————
Bond-buying exit should be quick, says Federal Reserve’s Lacker – Reuters – NDTV Profit 
vs.
IMF: Fed’s QE Tapering Might Spark ‘Adverse Global Implications’MoneyNews

————
For many Americans rising home prices are no cause for celebrationSober Look Blog – looks at 6 observations from JCHS Harvard 
————

MBA Likes Housing, FHA New Indemnification Standards, Eminent Domain is Here, STACRs Influence G-fees, Redwood’s 72 Buyers, 4 Servicer Fixes, Understating Inflation, HAMP Redefaults, DQ Rate Jumps, Community Banks, Home Sales Pace Jumps, Softening QRM, Maxine Was Not Happy

mnc-bc-fay2

email signup          RSS News Signup          Fay Servicing          BC’s profile

———

MBA Bright On Housing, Gloomy On Economic Recovery In Second Half – by MortgageOrb.com

————
FHA Bill Outlines Indemnification Standards for Bad Loans – by Jason Oliva – Reverse Mortgage Daily – … section three of the FHA Solvency Act of 2013 gives FHA the authority to seek indemnification from losses if the mortgage has a “material defect that would have prevented the loan from being insured or have involved fraud or misrepresentation.” Currently, FHA only has the authority to seek indemnification from lenders under the lender insurance program or the direct endorsement program. … 

————
(It’s happening) A City Invokes Seizure Laws to Save HomesThe New York Times – By SHAILA DEWAN – … “We’re not willing to back down on this,” said Gayle McLaughlin, … serving her second term as Richmond’s (CA) mayor. “They can put forward as much pressure as they would like but I’m very committed to this program … roughly half of all homeowners with mortgages in Richmond are underwater, … On Monday, the city sent a round of letters to the owners and servicers of the loans, offering to buy 626 underwater loans. … 
————
(will STACRs influence G-fees?) GSE offering puts g-fee hikes into question - By Christina Mlynski – … A rosier housing market and mortgage credit outlook has influenced the private sector appetite for mortgage credit. As a result, the Structured Agency Credit Risk (STACR) notes offering have left agency investors wondering if this pricing will ultimately impact future guarantee-fee hikes. … – Housingwire 
————

Latest Redwood RMBS features 72 separate mortgage sellers – By Christina Mlynski – Housingwire
————
(4 servicer recommendations) SIGTARP searches for HAMP redefault fix – By Megan Hopkins – Housingwire 
————
Right now, Larry Summers is the front-runner for Fed chair - By Ezra Klein – The word among Federal Reserve watchers right now is that the choice is down to Janet Yellen or Larry Summers as Ben Bernanke’s replacement. I can’t find anyone who really thinks it’ll be Roger Ferguson, Tim Geithner, Alan Blinder, or some other dark horse. – Washington Post 
————
(explains how gov’t understates inflation) What’s Up with Inflation? - Charles Hugh Smith – Of Two Minds 
————
Report: 26% of HAMP Borrowers Redefaulted, Rate Continues to Worsen – BY: ESTHER CHO – DS News – Upon closer examination, the Home Affordable Modification Program (HAMP) has not helped as many borrowers as it may seem, according to a report from the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). – DS News 
————
LPS: Delinquency Rate Sees Abrupt Increase in June - BY: ESTHER CHO – After five months of declines, the national mortgage delinquency rate reversed course in June, according to data from Lender Processing Services (LPS). – DS News

————
(Community Banks need secondary market access) ICBA Testifies Before Congress to Remain Secondary Market PlayersNational Mortgage Professional – … Testifying before the Senate … ICBA Vice Chairman Jack Hartings said provisions in the recently introduced Housing Finance Reform and Taxpayer Protection Act (S. 1217) would help provide secondary market access to community banks without requiring them to take on the additional risk and cost of securitizing loans. 
————
Pace of New Home Sales Climbs to Five-Year High – BY: MARK LIEBERMAN – The price of a new single-family dropped to its lowest level in seven months in June as sales surged to a five-year high, the Census Bureau and HUD reported Wednesday. – The M Report 
————
Softened (QRM) Mortgage Rule Said to Be Proposed Soon by U.S. Agencies – By Clea Benson and Jesse Hamilton – (43 DTI would replace 36 DTI)Bloomberg

————
(Maxine was not happy) House Financial Services Committee Approves PATH Act (30-27) – by MortgageOrb.com

Barrons on GSEs Fading Away, Taper in September?, Two Million Missing Households, Purchases Increase, S. Florida, Against Eminent Domain (3), Dodd-Frank in 1 Chart, Fannie Forecast, CFPB’s Constitutionality?, Time to Buy a Home?, Weaker Reps and Warrants

mnc-bc-fay2

email signup          RSS News Signup          Fay Servicing          BC’s profile

———

Barron’s Recap: Fannie and Freddie Will Fade – Nelson Hem, Benzinga – … Barron’s position is that investors ought to realize mortgage giants Fannie Mae and Freddie Mac will not be coming back. Also, home buyers should understand the alternatives to government-backed mortgages will be more expensive. …  It includes a table showing whether Fannie Mae and Freddie Mac were better stewards of capital than Wall Street since before the financial crisis. … 
————
5 reasons the Fed’s taper will begin in SeptemberSober Look Blog – Little doubt remains at this stage that the Fed will begin slowing its securities purchases this September. The central bank under Bernanke’s leadership has been highly focused on data and will consider the following 5 broad indicators to reach its decision.

———–
(Demographics and household formation) Sorry, Mom and Dad: The Kids Aren’t Moving Out Yet – by Trulia – … More Than Two Million Missing Households – While other measures of the housing recovery are chugging along – like foreclosures, prices, sales, and construction – household formation is lagging. Thanks to years of below-normal household formation, the number of “missing households” has accumulated. … – Forbes
————

(healthy sign) Survey: Current Homeowners Increase Purchases, Investors Exit Market – BY: ESTHER CHO – Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity, according to data from the Campbell/Inside Mortgage Finance HousingPulse Tracking survey. – DS News 
————
South Florida housing prices up by double digits in June – BY MARTHA BRANNIGAN – MIAMIHERALD.COM 
———–
SIFMA and (11) Other Associations Submit Comments to Congress Opposing the Use of Eminent Domain to Acquire and Refinance Underwater Mortgage Loans – press Release with links to all 11 letters – SIFMA.org
and
Rep. Campbell Reintroduces Eminent Domain Measure to Protect GSEsNational Mortgage Professional – Rep. John Campbell (R-CA) has reintroduced The Defending American Taxpayers from Abusive Government Takings Act, legislation to stop reckless city and county governments from enacting profiteering schemes that seek to cash in on the plight of underwater homeowners through the arbitrary seizure of private home loans. … 
and
Bibbidi Bobbidi Boo: Eminent Domain Needs More Than a Magic Wand to Overcome Title Defects – by Laurence E. Platt – K&L Gates 
————
(must look) Why Dodd-Frank Will Not Succeed At Fixing Wall Street (In 1 Chart)The Huffington Post – By David Winograd
————
Fannie Mae Sticks to Predictions of Increased Growth – BY: TORY BARRINGER – . On the housing front, Fannie Mae predicts mortgage rates will rise gradually, averaged 4.7 percent in Q4. The surge in rates is expected to continue dragging down refinancing activity into next year. For all of 2013, total mortgage originations are forecast to decline to $1.65 trillion from an estimated $2.03 trillion in 2012, with refinance share dropping to an estimated 62.0 percent. Meanwhile, home sales are expected to rise 8.0 percent throughout 2013—little changed from previous forecasts. … – The M Report

————
New lawsuit challenging CFPB’s constitutionality filed – Barbara S. Mishkin – Constitutional challenges to the CFPB’s authority have not ended with Director Cordray’s confirmation last week as CFPB Director.  Yesterday, a lawsuit was filed against the CFPB in federal district court in Washington, D.C. by two targets of the CFPB’s crackdown on the debt relief industry which claims that the agency’s structure violates the Constitution because it “insulates [the CFPB] from political accountability and internal checks and balances.” - CFPB Monitor 
————
(questions to ask yourself) It’s Not Everyone’s Time to Buy a Home – Carl Richards – NY Times
————
Third JPMorgan Chase RMBS rolls the dice with weaker reps and warrants – By Christina Mlynski – … Compared to other post-crisis reps and warrants plans, this deal employs an anemic standard, which includes materiality factors, the use of knowledge qualifiers as well as sunset provisions that allow for certain representations to expire within three to six years after the closing date, analysts with DBRS suggested. … – Housingwire

All About Freddie STACR Risk Sharing Notes – 5 Posts

mnc-bc-fay2

email signup          RSS News Signup          Fay Servicing          BC’s profile

———

Freddie STACR web page – Freddie Mac – Freddie Mac Structured Agency Credit Risk (STACR sm)  – lots to look at
————
Freddie Mac sells $500M risk-sharing MBS – By Christina Mlynski – Housingwire

————
Statement of FHFA Acting Director Edward J. DeMarco on Freddie Mac Risk-Sharing TransactionFHFA Press release

————
Freddie Mac May Get Risk-Sharing Notes Rated as Lessons Learned – By Jody Shenn – Freddie Mac may seek credit ratings in the next offering of the firm’s new securities sharing its mortgage-default risks with investors, as it learns from the first issue and plans for another later this year. The lack of grades on $500 million of notes sold this week “definitely detracted from a further breadth in the investor base,” Kevin Palmer, a vice president of costing and portfolio management at the government-controlled mortgage-finance company, said in a telephone interview. – Bloomberg

————
New Freddie Mac Debt Seen as Imperfect Shift of Housing Risk – By Jody Shenn – Freddie Mac’s $500 million of risk-sharing debt sold yesterday may not give the firm as much protection against homeowner defaults as policy makers seek, according to Amherst Securities Group LP and Deutsche Bank AG. – detailsBloomberg 

————

Plus – Nom de Plumber’s earlier thoughts:

Agency RMBS Credit-Linked Notes: SSFA Capital Treatment–Nom de Plumber’s Thought of the Day

Janet vs. Larry, Rates Decline, Existing Home Sales and Prices, Dave Stevens vs. Eminent Domain, 7 House Hunting Sites, Wil Armstrong Interview, Doug Duncan Likes Housing, Repo Defaults? = Danger, $65B QE Taper in Sep?, Senate Likes Mel Watt, Judicial FCs

mnc-bc-fay2

email signup          RSS News Signup          Fay Servicing          BC’s profile

———

(Do Janet or Larry Really Want This?) No Direction But Down For The Next Fed Leader – Posted by Tom Lindmark  – … I wonder if Summers, Yellen or any dark horses have truly thought out the implications of getting this job now. There’s a better than even chance that they end up being labeled a failed chairman. Think about it.  … – But Then What Blog
and 
Larry Summers Opposition Grows As Name Mentioned As Possible Federal Reserve Chairman – Reuters – By Pedro da Costa and Mark Felsenthal – Huffington Post 

and
(does Obama want austerity?) Larry Summers and the Pivot to Austerity – by Bill McBride – Just a thought, I haven’t seen any discussion on this … the pivot to austerity in early 2010 is widely viewed as a major mistake (as opposed to staying focused on employment). Larry Summers was the Director of the National Economic Council until December 2010, so he probably played a key role in the austerity pivot … – Calculated Risk 

————

After Peaking In July, U.S. Mortgage Rates Prepped To Decline For The Third Straight WeekThe Mortgage Reports
————
Comments on Existing Home Sales: Solid Report, Inventory near Bottom – by Bill McBride – … this is also the smallest year-over-year decline since June 2011. The key points are: 1) inventory is very low, but 2) the year-over-year inventory decline will probably end soon. With the low level of inventory, there is still upward pressure on prices – but as inventory starts to increase, buyer urgency will wane, and price increases will slow. … Right now I’m guessing inventory will be up year-over-year in September or October.  … – Calculated Risk

————
(has quotes) MBA CEO jumps into eminent domain debate - HousingwireDavid Stevens, CEO and president of the Mortgage Bankers Association, declared his public support for a bill that aims to prevent municipalities from using the power of eminent domain to help underwater homeowners. 
————
7 Great Sites That Do The House Hunting For You - SHELBY BREMER, CREDIT.COM – Business Insider  
————
Wil Armstrong, CEO of Blueberry Systems LLC, Greenwood Village, Colo. – PHIL HALL – Business Superstar of the Week (lots of you know Wil. He is a good guy. thanks Phil Hall)

————
Fannie economists watch rates closely, but remain positive on housing - By Kerri Ann Panchuk – … “We are keeping a very close eye on the effect of rising mortgage rates on the housing market and the economy, but our July forecast is little changed from last month,” said Fannie Mae Chief Economist Doug Duncan. We continue to see growth in housing, partly due to an increase in existing home sales as buyers choose to act while rates remain near historic lows. Consumer attitudes are improving … – Housingwire

————
(repos are lifeblood of money funds and treasuries trading) SEC Warns: Prepare For Repo Defaults – Submitted by Tyler Durden – Zero Hedge 
————
Bernanke Seen Tapering QE to $65 Billion in September in Survey – By Jeff Kearns, Joshua Zumbrun & Catarina Saraiva – Federal Reserve Chairman Ben S. Bernanke in September will trim the Fed’s monthly bond buying to $65 billion from the current pace of $85 billion, according to a growing number of economists surveyed by Bloomberg News – Bloomberg 
————
Senate Banking Committee Confirms Mel Watt To Head FHFA – by MortgageOrb.com – By a 12-10 party line vote, the Senate Banking Committee on Thursday approved the nomination of Rep. Mel Watt, D-N.C., to head the Federal Housing Finance Agency (FHFA). The truce between Senate Democrats and Republicans reached earlier this week averted the so-called “nuclear option” threatened by Majority Leader Harry Reid, D-Nev.,  … 
————
(confirms what we already know) Fed: Judicial Foreclosure Processes Thwart Price Gains – BY: KRISTA FRANKS BROCK – DS News 
————