OCC Announces Office of Financial Technology

Industry Update
October 27, 2022

Source: Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency announced it will establish an Office of Financial Technology early next year to bolster the agency’s expertise and ability to adapt to a rapidly changing banking landscape.

The Office of Financial Technology will build on and incorporate the Office of Innovation, which the OCC established in 2016 to coordinate agency efforts to support responsible financial innovation.

“Financial technology is changing rapidly and bank-fintech partnerships are likely to continue growing in number and complexity. To ensure that the federal banking system is safe, sound, and fair today and well into the future, we need to have a deep understanding of financial technology and the financial technology landscape,” said Acting Comptroller of the Currency Michael J. Hsu. “The establishment of this office will enable us to be more agile and to promote responsible innovation, consistent with our mission.”

The Office of Financial Technology will be led a by a Chief Financial Technology Officer, who will be a Deputy Comptroller reporting to the Senior Deputy Comptroller for Bank Supervision Policy. The office will provide strategic leadership, vision, and perspective for the OCC’s financial technology activities and related supervision.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Loan Performance Insights – October 2022

Industry Update
October 27, 2022

Source: CoreLogic

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through August 2022.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FHFA Announces Validation of FICO 10T and VantageScore 4.0 for Use by Fannie Mae and Freddie Mac

Industry Update
October 24, 2022

Source: FHFA

The Federal Housing Finance Agency (FHFA) announced the validation and approval of both the FICO 10T credit score model and the VantageScore 4.0 credit score model for use by Fannie Mae and Freddie Mac (the Enterprises).

“Today’s decision will benefit borrowers and the Enterprises, along with maintaining safety and soundness,” said FHFA Director Sandra L. Thompson. “While implementing the newer credit score models is a significant change that will take time and require close coordination across the industry, the models bring improved accuracy and a more inclusive approach to evaluating borrowers.”

FHFA expects that implementation of FICO 10T and VantageScore 4.0 will be a multiyear effort. Once implemented, lenders will be required to deliver both FICO 10T and VantageScore 4.0 credit scores with each loan sold to the Enterprises. FHFA and the Enterprises will conduct outreach to stakeholders to ensure a smooth transition to the newer credit score models.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Newark Targets Derelict Property Owners with New Ordinance

Industry Update
October 21, 2022

Source:  patch.com

“Blighted” properties can drag a neighborhood down in several ways. That’s why a new local law in Newark aims to tackle the problem by penalizing unreachable corporations and absentee lot owners, city officials say.

Earlier this week, the Newark Municipal Council approved an ordinance that will jack up annual registration fees for residential properties if they remain unrenewed. The result? Property owners who abandon their lots will be hit where it hurts – their wallets, according to a statement from the office of Mayor Ras Baraka.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Freddie Mac Announces Underwriting Innovation to Help Lenders Qualify More Borrowers for a Mortgage

Industry Update
October 17, 2022

Source:  Freddie Mac

Freddie Mac will increase homeownership opportunities by including a review of a borrower’s bank account data to identify a history of positive monthly cash flow activity as part of its technology’s loan purchase eligibility assessments, the company announced. This industry-first innovation will be available to mortgage lenders nationwide through Freddie Mac’s automated underwriting system, Loan Product Advisor® (LPASM), beginning November 6, 2022.

“With the addition of positive monthly cash flow data, our underwriting system can help with more accurately predicting a borrower’s ability to pay their mortgage because it uses a comprehensive view of how personal finances are managed over time,” said Terri Merlino, Freddie Mac Single-Family senior vice president and chief credit officer. “Our latest innovation levels the playing field and helps make homes more accessible to borrowers whose lenders might not have qualified them with traditional methods of underwriting. This should particularly help first-time homebuyers and underserved communities.”

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Lawmaker Says it’s Time for a Land Bank in St. Louis County

Industry Update
October 17, 2022

Source:  St. Louis Post-Dispatch

By the time a California woman claimed a stake in the vacant house on Ventura Drive, Amy Michael had already spent around $50,000 repairing the warped floors, broken windows and copper wiring destroyed by vandals and years of neglect.

Michael has worked with family and friends to repair and flip houses since about 2015. But this was the first time she had bought a fixer-upper from St. Louis County’s inventory of thousands of tax delinquent properties.

“You don’t know until you’ve already purchased it whether you’re going to have trouble or not,” Michael said.

And she doesn’t mean the trash she found buried in the backyard or the mold she discovered inside. Rather, it’s the title issues that keep banks from lending against the property and force the limited pool of gutsy investors, like Michael, to spend thousands of dollars on lawyers.

“If you don’t have a clear title, that takes away many of the benefits of owning a home,” said Rep. Kevin Windham, D-Hillsdale. “Some people start work and then find out they don’t actually own the home.”

Windham hopes legislation he plans to introduce next session will help St. Louis County better absorb and repurpose a growing number of abandoned properties that are weighing down neighborhoods. His bill would allow the county to create a land bank similar to the city of St. Louis’ Land Reutilization Authority, which was authorized by state statute in 1971 to manage abandoned properties left in the wake of an exodus to the suburbs.

If Windham’s bill passes and the county approves its own land bank ordinance, thousands of abandoned properties could have a new path to clean titles and a fresh start — or at least a landlord with the task of maintaining them.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Fire Management Assistance Declaration – Washington Nakia Creek Fire

FEMA Alert
October 17, 2022

FEMA has issued a Fire Management Assistance Declaration for the state of Washington to supplement state, tribal and local recovery efforts in the areas affected by the Nakia Creek Fire on October 9, 2022 and continuing.  The following counties have been approved for assistance:

Public Assistance:

  • Clark
  • Skamania

 

Washington Nakia Creek Fire (FM-5456-WA)

Zip Codes of Affected Areas

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Mortgage Application Volume Hits 25-Year Low

Industry Update
October 19, 2022

Source: Mortgage Daily News

Mortgage application activity fell again during the week ended October 14 as mortgage interest rates hit their highest level in 20 years. The Market Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier and was down 4 percent on an unadjusted basis.

The Refinance Index dropped 7 percent week-over-week and was 86 percent lower than the same week in 2021. The refinance share of mortgage activity decreased to 28.3 percent of total applications from 29.0 percent during the week ended October 7.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Share of Mortgage Loans in Forbearance Decreases to .69% in September

Industry Update
October 17, 2022

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 3 basis points from 0.72% of servicers’ portfolio volume in the prior month to 0.69% as of September 30, 2022. According to MBA’s estimate, 345,000 homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.30%. Ginnie Mae loans in forbearance increased 1 basis point to 1.33%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 12 basis points to 1.14%.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FHFA Releases 2nd Quarter 2022 Foreclosure Prevention and Refinance Report

Industry Update
September 22, 2022

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) released its second quarter 2022 Foreclosure Prevention and Refinance Report​. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 96,945 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,591,002 since the start of conservatorships in September 2008.

The report also shows that 72 percent of loan modifications completed in the second quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances decreased significantly amid rising mortgage rates from 899,518 in the first quarter to 444,852 in the second quarter.

The Enterprises’ serious delinquency rate declined from 0.97 percent to 0.79 percent at the end of the second quarter. This compares with 4.64 percent for Federal Housing Administration (FHA) loans, 2.83 percent for Veterans Affairs (VA) loans, and 2.12 percent for all loans (industry average).

 

For full report, please click the source link above.