The American Enterprise Institute this week released a proposal to gradually eliminate Fannie Mae and Freddie Mac through administrative action and reform the FHA program. Many of its recommendations could be implemented by the Federal Housing Finance Agency director that President Trump can nominate early next year.

The Internal Revenue Service said that interest payments on home-equity loans can still be deductible under the Tax Cuts and Jobs Act that went into effect at the end of 2017 if it’s used for home improvements.

The Trump administration is seeking additional budget allocations in FY 2019 for FHA and Ginnie Mae to pay technology upgrades, additional staffing, and increased issuer oversight. The budget request seeks an additional $20 million above the 2017 enacted level of $130 million for FHA to upgrade its aging information technology – some still based on the antiquated COBOL programming language – and contract support. The additional funding would be offset by charging lenders an IT fee of no more than $25 per loan, according to the proposed budget for the Department of Housing and Urban Development. In addition, the 2019 HUD budget requests $400 billion in new loan guarantees under the Mutual Mortgage Insurance Fund for forward single-family mortgages Home Equity Conversion Mortgages, multifamily housing, and manufactured housing. The requested $400 billion would remain available ...

The House last week passed a bill that industry participants insist will add stability to the secondary market. It would effectively overturn a 2015 court ruling that has introduced uncertainty for MBS and ABS, according to the Structured Finance Industry Group.

In a white paper published on PIMCO’s website, four company executives said the conservatorship of the two government-sponsored enterprises has been “immensely successful” and should be a part of the reform solution.

A key GOP lawmaker is raising concerns about $353 million in funds slated to be paid by Fannie Mae and Freddie Mac toward affordable housing programs, while a liberal-leaning think tank tries to show that a proposed Senate reform plan would do more for affordable housing than critics say.

The House of Representatives last week voted 271-145 to approve targeted legislation to address the disclosure of certain charges in the Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosure, or TRID. H.R. 3978, the TRID Improvement Act of 2017, would require the CFPB to allow for the calculation of discounted title insurance rates that companies may offer to consumers for policies that cover both the lender and the homeowner. The bill was introduced ...

The House of Representatives has passed H.R. 1153, “The Mortgage Choice Act,” legislation that would make two adjustments to the Truth in Lending Act definition of points and fees regarding title fees charged by affiliates of the lender. The bill aims to make more loans eligible for qualified-mortgage status by excluding points and fees paid for affiliated title charges and escrow charges for insurance and taxes. House Financial Services Committee Chairman Jeb Hensarling, R-TX, explained ...

QM Portfolio Lending Legislation Would Cost CFPB $1 Million to Implement. Enacting H.R. 2226, the Portfolio Lending and Mortgage Access Act, introduced last April by Rep. Andy Barr, R-KY, would cost the CFPB $1 million, according to a new analysis by the Congressional Budget Office. “Using information from the CFPB, CBO estimates that enacting H.R. 2226 would increase direct spending by $1 million in 2019 for the agency to issue rules to implement ... [Includes four briefs]

This week, 127 mortgage banking executives attached their names to an open letter to members of Congress, urging federally elected politicians not to cede the work of housing-finance reform to the White House and the institutions it controls.The correspondence asks lawmakers to back draft legislation that creates a new “guarantor-based” system that builds on the current infrastructure created and maintained by Fannie Mae and Freddie Mac.The executives, members of the Mortgage Bankers Association, favor improving the system by having “two or more” guarantors. The group believes a guarantor-based system – as opposed to an “issuer-based” system – is the best way to meet the nation’s housing-finance needs.