Jumbo mortgage production declined 32.9 percent during the first quarter of 2017, along with virtually every other part of the home-loan market, according to a new Inside Mortgage Finance ranking and analysis. An estimated $70.0 billion of non-agency jumbo mortgages were originated during the first quarter, a 30.0 percent decline from the previous three-month period. In addition, some $29.0 billion of conforming-jumbo mortgages were delivered into Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities in the first three months of the year. These are loans on one-unit properties that exceed the baseline agency loan limits and are eligible because they’re secured by homes in designated high-cost markets. The agency-jumbo market was...[Includes three data tables]

Federal banking regulators this week took action against two mortgage lenders for failing to enforce flood insurance requirements on properties in flood-prone areas. Separately, House lawmakers mulled over draft Republican legislation to reform and reauthorize the National Flood Insurance Program. The Office of the Comptroller of the Currency announced it slapped Colonial Savings Bank with an $87,500 penalty for violation of the Federal Disaster Protection Act of 1973. The FDPA requires...

The mortgage industry has come to the conclusion that meaningful housing-finance reform is so elusive that any legislation being introduced is a long shot, even in the Senate Banking, Housing and Urban Affairs Committee, which seems to be more involved in the topic than any other panel on Capitol Hill. Over the past month, rumors have circulated that some senators on the committee, including Bob Corker, R-TN, have been discussing with fellow members what an outline for housing-finance reform might look like, but with nothing committed to paper. A spokeswoman for the committee told...

The House of Representatives this week began voting on H.R. 10, the Financial CHOICE Act, the Republican effort to replace significant portions of the Dodd-Frank Act. The legislation, introduced earlier this year by House Financial Services Committee Chairman Jeb Hensarling, R-TX, passed out of committee in early May on a party-line basis. The final vote was expected to be completed late this week. The House Rules Committee voted...

The full House of Representatives is scheduled to vote sometime this week – perhaps as early as Tuesday evening – on H.R. 10, the Financial CHOICE Act of 2017, Inside the CFPB has learned. The exact day the vote will occur had not been set as of press time, but it will likely take place after the House Rules Committee formally provides a structured amendment process for the legislation. That is slated to take place sometime in the evening on Tuesday, June 6. H.R. 10, introduced earlier this year by House Financial Services Committee Chairman Jeb Hensarling, R-TX, was passed out of committee early last month. Prospects in the Senate are slim, however, because the Republicans just do not have the votes ...

The Consumer Financial Protection Bureau is destined for major changes whether they come via the federal courts or Congress, but which one has the bigger impact on the agency’s future is a question that seems to divide industry attorneys. In an analysis, Jerome Walker, a bank regulatory compliance attorney with the Duane Morris law firm in New York, writes it is likely that courts are a greater threat to the CFPB at this point than Congress. Although the House Financial Services Committee has approved legislation that would make major changes at the bureau, the legislation’s future in the Senate is uncertain. “Recent court cases, however, have proven...

The Mortgage Bankers Association is pushing back against a controversial budget proposal to charge FHA lenders a fee to pay for technology upgrades to help protect the Mutual Mortgage Insurance Fund. Rather than charging lenders an “administrative fee,” the MBA prefers that funding improvements to FHA’s aging information systems be done through the appropriations process. “We need to be working with [the Department of Housing and Urban Development] and Congress to find ways to fund technology upgrades and risk-management improvements,” MBA Senior Vice President Pete Mills told Inside FHA/VA Lending. The White House’s budget plan for FY 2018 incorporates verbatim a proposal by the Obama administration to charge FHA lenders an administrative fee to support the upgrades needed to reduce MMI Fund losses. According to the previous administration’s estimate, the ...

The Trump administration has revived a controversial proposal to tap FHA lenders to help pay for technology upgrades at the Department of Housing and Urban Development. HUD is among nine federal agencies facing significant cuts in their discretionary budgets, al-though guarantee commitments for FHA’s single-family mortgage insurance program and Ginnie Mae mortgage-backed securities programs were kept at their previous fiscal levels, $400 billion and $500 billion, respectively. The White House budget plan incorporates...

There wasn’t much mention of the interpretation and enforcement of the Real Estate Settlement Procedures Act during oral arguments this week before the U.S. Court of Appeals for the District of Columbia Circuit in PHH Corp. v. Consumer Financial Protection Bureau. Instead, nearly all of the discussion revolved around constitutional questions. The biggest issue was about just how much power to “faithfully execute” the laws of United States the president is left with if the only way to remove the head of a single-director agency is “for cause.” The other constitutional issues that garnered some attention were...

House Financial Services Committee Chairman Jeb Hensarling, R-TX, author of H.R. 10, the Financial CHOICE Act, this week expressed uncertainty about how much of his controversial alternative to the Dodd-Frank Act might be able to garner bipartisan support in the Senate. But he said he is hopeful and willing to negotiate anything, while articulating faith in a strategy that pushes both a “short game” and a “long game” when it comes to making the major changes he envisions. During a public policy discussion at the American Enterprise Institute, a conservative think tank in Washington, DC, Hensarling suggested that Democrats haven’t stepped up to the plate to help smaller banks. “I hear my friends on the other side of the aisle say nice things about wanting to do regulatory relief for community financial institutions,” the congressman replied. “But I just never see the legislation. I don’t quite see the follow-through. “I haven’t given up...