Maine Association Of Mortgage Professionals Blog MAA Newsletter - 3/7/2018

Volume XII | Issue 10 | March 7, 2018Yesterday, the Senate voted 67-32 to invoke cloture and begin debate on a broad bipartisan regulatory relief package. The bill, The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) contains several MBA-supported priorities including transitional authority to originate (SAFE Act amendments), consumer protections tied to PACE loans, as well as TRID and HMDA fixes. Contents of a potential "Manager's Amendment" and timing of the final Senate vote on passage are still developing. Meanwhile, Gary Cohn resigned as White House National Economic Council director, and the 2018 midterm elections officially kicked off in Texas. MBA Advocacy SpotlightMBA's National Advocacy Conference Early Bird Deadline ApproachingRegister by Monday, March 12 to save $100 on MBA's National Advocacy Conference (NAC). In addition to saving on registration, you need to be registered for the conference to book a hotel room at the discounted conference rate. MAA Chairman Gene M. Lugat filmed a video encouraging MAA members to attend this year's NAC and speak up on Capitol Hill.For more information about the National Advocacy Conference, and to register, please visit mba.org/NAC18 or contact Alden Knowlton at (202) 557-2816. Procedural Vote on Regulatory Relief Bill Passes As mentioned earlier, the Senate voted yesterday to begin debate on S. 2155, a broad bipartisan regulatory relief package. Thank you to the industry advocates across the country who contacted 94 Senators to urge them to vote to begin debate on - and then vote for final passage of - S. 2155. Your advocacy makes a difference!MAA members will receive an update when additional information regarding a potential "Manager's Amendment" and timing of the final Senate vote is available. Parallel action on the bill in the House remains a yet-to-be-defined process, but Chief GOP Deputy Whip (and House Financial Services Committee Vice-Chairman) Patrick McHenry (R-NC) stated last week the House could ratify an amended Senate bill by the August recess.2017 Year-End MORPAC Report ReleasedYesterday, MORPAC released its 2017 year-end report. This report covers fundraising metrics, outreach initiatives and recognition, including all of the individuals and companies who have been a part of our 2017-2018 campaign. In addition, you'll find a summary of the legislative and political priorities and how MBA advocacy is staying at the forefront.Key MBA ActionMBA Joins Letter Urging Senate to Confirm Montgomery as FHA CommissionerMBA joined a letter signed by a broad cross-section of housing and community development groups calling on the Senate to confirm Brian D. Montgomery as the Assistant Secretary for Housing and Federal Housing Administration (FHA) Commissioner. On several occasions MBA has voiced its public support for Mr. Montgomery to serve as FHA Commissioner, a job he held from 2005 to 2009. The role of FHA Commissioner is a critical one for the housing industry, and we believe that having Mr. Montgomery in place will help move key housing policy efforts forward.New Federal Reserve Bank Chairman Appears in House and SenateFederal Reserve Chairman Jerome Powell testified before both the House and Senate last week. His testimony covered a wide range of topics including wage growth, unemployment, capital levels, SIFIs, the Volcker Rule and leverage capital ratios.Notably, during the Q&A in the House, a number of Democratic members referenced a HMDA study by The Center for Investigative Reporting, which highlighted potential discriminatory practices within home lending. MBA President and CEO David Stevens drafted a blog post as well as issued a statement, rebuking the study for using flawed data.NY Fed Study Finds FinTech Mortgages More Efficient, Less RiskyIn February, the Federal Reserve Bank of New York ("NY Fed") released its paper, "The Role of Technology in Mortgage Lending." The study was conducted to analyze the growth of FinTech lenders in the US residential mortgage industry. Studying the effect of FinTech lending, the NY Fed's hypothesized that FinTech lending models represented a technological innovation that reduced frictions in mortgage lending, e.g., lengthy loan processing, capacity constraints, inefficient refinancing, and limited access to finance for some borrowers.The study finds that recent innovations are improving the efficiency of the US mortgage market stating, "We find that FinTech lenders process mortgages more quickly without increasing loan risk." Specifically, the study relays that, "FinTech lenders process loans 7.9 days faster than non-FinTech lenders." In addition to greater efficiency in processing, the NY Fed found that default rates on FinTech mortgages were approximately 25% lower than those for traditional lenders, and that there was no significant difference in interest rates. The study ultimately rejects the idea that FinTech lenders have "lax screening" standards, suggesting that these innovative technologies actually help to attract and screen for less risky borrowers.CSBS will Delay the Release of NMLS 2.0 to Q2 2019The Conference of State Bank Supervisors (CSBS) recently announced they will delay the launch of NMLS 2.0 to the second quarter of 2019. The update to the National Multistate Licensing System (NMLS) was originally slated to launch in September 2018.Tim Doyle, Vice President of Policy stated in the release, "As SRR staff has monitored the progress of NMLS 2.0 development, we determined there were too many risks to being able to confidently deliver a high-quality product by September 2018. As a result, the SRR Board of Managers decided on a new target for the launch of NMLS 2.0, to be sometime in the second quarter of 2019."The NMLS 2.0 delay will likely push back the scheduled update to the Mortgage Call Report (MCR). CSBS' proposed changes to the MCR are currently out for public comment. The official request for public comment can be found on the NMLS Resource Center.MBA Submits Comments on HUD's Regulatory Review of Manufactured Housing RulesOn Monday, February 26, 2018 MBA submitted a comment letter to the U.S. Department of Housing and Urban Development (HUD) regarding its review of existing and planned manufactured housing rules. MBA encouraged HUD to focus on safely and appropriately expanding consumer eligibility, eliminating unnecessary industry burdens, and lowering costs for both lenders and consumers. MBA offered the following recommendations to further improve HUD's manufactured housing requirements, with the objective of making these requirements more effective and sustainable:MBA recommends that HUD eliminate the one-time move restriction and replace it with a requirement for an inspection following a move.MBA recommends that the Tiered Pricing structure be eliminated and that lenders be allowed greater flexibility with respect to the Mortgage Charge Rate.MBA recommends that HUD streamline the process by which the engineer's certification is obtained, thereby reducing costs for lenders and consumers.MBA recommends that HUD require all manufactured home title evidence to be completed at closing and make that process a condition of closing so that it is completed properly at that time.MBA recommends that flood elevation requirements on existing manufactured homes be harmonized with those of other types of existing construction.MBA-Led Collaborative Releases Report on Opportunities to Create Homeownership through Housing CounselingAs a leader of the Homeownership Collaborative, MBA last week released the group's first report, Creating Channels of Opportunity in Diverse & Emerging Homebuying Markets. The paper details steps that can be taken to increase the utilization of homeownership education and housing counseling services available nationwide. Announced in 2016, the Collaborative is a coalition of real estate trade associations and nonprofit housing counseling providers, including MBA, the National Housing Resource Center and the National Association of Realtors. The report is the result of lenders, real estate agents, and housing counselors working together, and with state mortgage banking associations, in four cities to increase homeownership opportunities in their markets: Cleveland, OH; San Antonio, TX; Richmond, CA; and, Brockton, MA.MBA Education's Webinar on Social Media & Digital Advertising RegulationsJoin the MBA Education and the Compliance Essentials program on March 13th for a conversation on the increasing use and application of social media and digital advertising platforms with regard to the mortgage finance industry and associated risks arising within that context. This webinar is complimentary to those that have purchased the Compliance Essentials Social Media & Digital Advertising Resource Guide which can be found here. To register for the webinar, please click here. 2018 Elections UpdateSenateFlorida: Quinnipiac University surveyed the Florida electorate (2/23-26; 1,156 FL registered voters) and found consistent results with other firms who have recently asked ballot test questions for the impending US Senate contest between Sen. Bill Nelson (D) and Gov. Rick Scott (R). According to the results, Sen. Nelson claims a 46-42% advantage. Gov. Scott has not announced a campaign for the Senate, but an unconnected political action committee has been running extensive media spots in an effort to promote the Governor's agenda and accomplishments in office. He is expected to soon become an official candidate. Mississippi: Both Mississippi Senate seats will be in play in November after Sen. Thad Cochran (R) announced his retirement last week. In the wake of Sen. Cochran's resignation, Mississippi Gov. Phil Bryant (R) will appoint a temporary senator to fill Cochran's vacant seat, and a special election will be held in November.Before Sen. Cochran's announcement, State Sen. Chris McDaniel (R-Ellisville) announced his primary challenge to Sen. Rog