HMBA (Houston Mortgage Bankers Assn) Untitled page

HMBA Hosts July Webinar Featuring Alessandro Grattoni, Ph.D., Houston Methodist Research Institute

Thu, 09 Jul 2020 20:18:14 GMT

HMBA hosted our July Event Virtually via Webinar, featuring Alessandro Grattoni, Ph.D. Frank & Jean Raymond Centennial Chair Professor and Chairman, Department of Nanomedicine, Houston Methodist Research Institute
Click HERE to view his presentation titled "Breast Cancer Immunotherapy, COVID-19 & Space Science".

MBA Advocacy Update - 12 July 2019

Fri, 12 Jul 2019 13:00:00 GMT

Introduction
This week, the House of Representatives passed MBA-supported legislation clarifying seasoning requirements for refinanced mortgage loans to veterans. The House Committee on Financial Services began its planned two-day markup of roughly 20 proposals pertaining to residential appraisals, credit reporting, and corporate board diversity disclosures. And Federal Reserve Chairman Jerome Powell hinted in congressional testimony that an interest rate cut may come later this month.

Industry Update

Click on a headline to read more:

MBA Working For You

House Passes VA ‘Orphan’ Loan Bill
This past Tuesday, the House of Representatives passed both H.R. 1988 and S. 1749, identical legislation entitled the Protecting Affordable Mortgages for Veterans Act of 2019. As a reminder, this is the MBA-supported legislation designed to repair a drafting error that caused certain VA-guaranteed refinances to be ineligible for pooling into Ginnie Mae securities. As a result of this error, thousands of valid VA-guaranteed loans became “orphaned” and remained stranded on lender balance sheets. MBA sent aletter of support ahead of the final floor vote.

This legislation, originally introduced by Representatives David Scott (D-GA), Lee Zeldin (R-NY), Mike Levin (D-CA), and Andy Barr (R-KY), and Senators Kyrsten Sinema (D-AZ) and Thom Tillis (R-NC), removes the duplicative requirements that created the 2018 Ginnie Mae pooling glitch. Importantly, it does not weaken any of the consumer protections that are necessary for refinances to obtain a VA guaranty. Further, it provides go-forward relief by restoring the calculation of the 210-day seasoning period to its original form – that is, the seasoning period will begin on the first payment due date of the prior loan, rather than the date that the borrower made the first payment.

The passage of this legislation is the result of over a year of MBA advocacy, and as an identical bill (S. 1749) was passed by the full Senate via voice vote last month, it is expected to go to the president’s desk for his signature in the coming days.

For more information, please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at (202) 557-2712.

House Committee on Financial Services Begins Markup of Appraisal, Credit Reporting, and Corporate Governance Proposals
On Thursday, the House Committee on Financial Services began its markup of roughly 20 proposals pertaining to residential appraisals, credit reporting, and corporate board diversity disclosures.

In a letter to members of the Committee, MBA urged support for the Homebuyer Assistance Act of 2019, H.R. 2852, introduced by Representatives Brad Sherman (D-CA) and Sean Duffy (R-WI). The legislation would allow licensed appraisers to become eligible to conduct real estate evaluations on properties subject to mortgages insured by the Federal Housing Administration (FHA). The bill passed unanimously out of committee.

MBA also expressed concerns with two credit-reporting-related bills that would negatively impact the real estate finance industry. The Clarity in Credit Score Formation Act of 2019, introduced by Rep. Stephen Lynch (D-MA), for example, would authorize the Consumer Financial Protection Bureau (CFPB) to conduct biennial reviews of “credit scoring models” (undefined) and allow the Bureau to prohibit the use or alter the weighting of any model inputs that the Bureau deems “inappropriate.” The measure would give the CFPB extraordinary authority over all manner of credit scoring and underwriting models used in consumer financial services.

Additionally, the Improving Credit Reporting for All Consumers Act, introduced by Rep. Alma Adams (D-NC), includes a provision that has the potential to increase uncertainty for lenders and consumers alike by providing injunctive relief under the Fair Credit Reporting Act. This bill passed on party lines.

MBA will continue to engage members of Congress on these proposals as they potentially proceed through the House.

For more information, please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at (202) 557-2712.

Federal Reserve Chairman Signals Possible Interest Rate Cut
Federal Reserve Chairman Jerome Powell appeared before the House Financial Services Committee on Wednesday, July 10, and the Senate Banking Committee on Thursday, July 11, to deliver his Semiannual Monetary Policy (“Humphrey-Hawkins”) Report to Congress. Powell started each hearing by reading the same prepared remarks outlining a variety of concerns about the global economy that weigh on the U.S. outlook. He reiterated the Fed’s intention to “act as appropriate to sustain the expansion.” Observers interpreted that line, which first appeared in the Fed’s June 19 policy statement, to mean the central bank’s rate-setting Federal Open Market Committee (FSOC) is likely to lower its benchmark interest rate at its next policy meeting July 30-31. Powell would not answer with specificity any questions about what might sway Fed officials to considering a half-percentage-point rate cut instead of a quarter-point cut.

House Financial Services questions covered numerous topics on the country’s economic outlook but also focused on politically charged items, including Powell’s job security and the feasibility of increasing the minimum wage. During Chairman Powell’s appearance before the Senate Banking Committee, Chairman Mike Crapo (R-ID) touched on GSEs briefly in his opening statement. He mentioned that Powell has already called Fannie Mae and Freddie Mac “systemically important,” and Crapo wanted Powell’s view of a proposal for FSOC to designate the entities as systemically important financial institutions (SIFIs), which would bring them under Fed supervision. However, Crapo did not pursue this line of questioning during the Q&A portion and instead focused solely on cryptocurrency.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barryat (202) 557-2913.

MBA Submits Joint Comment with ABA on FHA Single-Family Loan Sales
On July 5, MBA joined the American Bankers Association (ABA) in submitting comments to FHA on its Advance Notice of Proposed Rulemaking on the Single-Family Loan Sale Program (“SFLS” or “the Program”). MBA and ABA applauded FHA for its intention to transition the SFLS from a demonstration program to a permanent one, as the program has helped stabilize communities and provided tens of thousands of borrowers a second chance to save their homes, all while producing a better financial outcome for taxpayers. SFLS reduces losses to FHA’s Mutual Mortgage Insurance Fund, relieving FHA of the high costs of maintaining and marketing foreclosed properties. MBA and ABA’s suggestions for FHA to improve the SFLS Program include, but are not limited to, 1) establishing a regular schedule of loan sales, 2) maintaining consistent eligibility criteria across sales and lock-qualified loans as of a specific date, 3) expanding loan eligibility criteria, 4) revising reps and warrants, and 5) revising SFLS claims policies.

Please click here to read MBA and ABA’s full comment.

For more information, contact Sara Singhas at (202) 557-2826.

FHA Publishes Updates to Single-Family Housing Policy Handbook
On Wednesday, FHA published updates to its Single Family Housing Policy Handbook 4000.1. These updates include policy guidance and clarity on several topics such as Minimum Decision Credit Score Determination, Net Tangible Benefit, Streamline and Rate/Term Refinances, as well as guidance regarding the incident end date policy for inspections in Presidentially Declared Major Disaster Areas (PDMDAs).

While this list is not comprehensive, it’s strongly recommended that MBA members carefully review the redlined version of the updated handbook to ensure compliance with FHA’s updated policies.

For more information, please contact Julienne Joseph at 202-557-2782.

New Report Details Product Design for SOFR-Indexed ARMs
On Thursday, the Alternative Reference Rates Committee (ARRC) released a white paper illustrating the potential product design of a single-family, adjustable-rate mortgage (ARM) that is indexed to the Secured Overnight Financing Rate (SOFR). This white paper is a significant milestone in the broader push to move financial markets away from the use of LIBOR as the primary interest rate benchmark. Topics addressed in the white paper include index averaging, payment determination, adjustment periods, interest rate caps, and margins.

MBA continues to be heavily involved in the work of the ARRC with respect to both single-family and commercial/multifamily mortgages. As a reminder, MBA recently published a consumer disclosure template for lenders seeking to provide borrowers with information on the LIBOR transition as they consider new single-family ARM products.

For more information, or to join MBA’s working group on single-family LIBOR transition issues, please contact Dan Fichtler at (202) 557-2780. To join MBA’s working group on commercial/multifamily LIBOR transition issues, please contact Andrew Foster at (202) 557-2740.

Financial Regulatory Agencies Adopt Final Rule to Exclude Community Banks from the Volcker Rule
On July 9, the OCC, Federal Reserve, FDIC, SEC, and CFTC (the agencies) adoptedfinal rules to exclude community banks from the Volcker Rule, pursuant to statutory amendments made by certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act. In general, the Volcker Rule imposes prohibitions and restrictions on banking entities relating to proprietary trading and owning, sponsoring, or having certain relationships with hedge funds or private equity funds. The final rules, which essentially adopt the proposal issued in May 2018, apply to community banks with $10 billion or less in total consolidated assets, and total trading assets and liabilities of 5 percent or less of total consolidated assets. The rules also, under certain circumstances, amend the restrictions that apply to a hedge fund or private equity fund sharing the same name or a variation of the same name with an investment adviser — as long as the adviser is not an insured depository institution, a company that controls an insured depository institution, or a bank holding company. The final rules are effective on the date of publication in the Federal Register.

For more information, please contact Fran Mordi at (202) 557-2860.

Washington, D.C., Passes Legislation to License and Regulate Appraisal Management Companies
On Tuesday, the Council of the District of Columbia unanimously passed emergency legislation to establish required Dodd-Frank minimum standards for appraisal management companies (AMCs). Once signed by Mayor Muriel Bowser, the Department of Insurance, Securities and Banking (DISB) will be required to promulgate rules that govern the licensing of AMCs. The District has taken a major step toward meeting the Aug. 10 deadline that would have restricted the ability of lenders to use AMCs in the loan process if the jurisdiction had failed to comply with federal requirements. The passage of AMC legislation in Washington, D.C., which was the focus of a Mortgage Action Alliance Call to Action, leaves Massachusetts as the only state that has yet to adopt the required the Dodd-Frank rules. However, Massachusetts recently moved legislation (H.3904, formerly H.1114) through the House and had companion legislation (S.2288) pass in the Senate on Thursday to license AMCS. The bills must now be reconciled before final passage. MBA recently expressed support for H.3904, and the Massachusetts MBA encouraged its passage during the organization’s Beacon Hill Day advocacy agenda.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

Mortgage Servicing and Subservicing Webinar Series
Join MBA Education and industry experts on July 17 and 24 for a two-part series on mortgage servicing and subservicing. The completion of this series will provide you with the information necessary to understand servicing and its related components. Anyone who seeks to increase their knowledge of mortgage servicing will benefit from these conversations that will cover critical topics such as how to manage and pick a subservicer, which loans should be retained, why or why not to retain servicing in today’s market, and profitability trends for servicers. To register for part I, please clickhere. To register for part II, please click here. To receive a discount for registering for both, please email education@mba.org.

For questions, please contact Allison Yaworske at (202) 557-2912.

MBA Advocacy Update - 3 July 2019

Wed, 03 Jul 2019 13:00:00 GMT

Introduction
Due to the July 4th holiday and corresponding congressional recess, we will not have an extended Advocacy Update this week. However, there are a few items we wanted to share with you. We hope you have a wonderful Independence Day and look forward to resuming our regular protocol next week.

Industry Update

Click on a headline to read more:

Podcast - How To Build A High-Performance Culture with Marcia Davies

Click here for Upcoming MBA Conferences and Events

MBA Working For You

MBA and Coalition Partners Urge Changes to FHA Loan-Level Certifications and Defect Taxonomy
Late last week, a coalition featuring MBA, the Housing Policy Council, the American Bankers Association, and the Bank Policy Institute submitted detailed recommendations to FHA on its proposed revisions to the program’s loan-level certifications and Defect Taxonomy. These recommendations were developed to limit the overbroad use of the False Claims Act to penalize FHA lenders, often for minor loan defects.

The coalition’s recommendations focused on three areas:

Recognition that the underwriting process entails judgment and discretion on the part of the underwriter;
Exclusion of certifications related to minor defects that would not impact the eligibility of the loan for FHA insurance; and
Formal incorporation of the Defect Taxonomy to provide greater certainty regarding the remedies for various types of loan defects.

FHA is expected to consider the public input it has received to date via its “drafting table” approach before publishing a revised version of the loan-level certifications in theFederal Register for an additional round of comments.

For more information, please contact Justin Wiseman at (202) 557-2854, Fran Mordi at (202) 557-2860, or Dan Fichtler at (202) 557-2780.

House Financial Services Committee Expected to Consider Numerous Bills
MBA anticipates the House Financial Services Committee will hold a significant mark-up – with as many as 20 bills on the docket – beginning on Thursday, July 11, and stretching until Tuesday, July 16. The focus of the proposals will be grouped into four major policy areas: Consumer Protection, Diversity and Inclusion, Housing, and Investor Protection. As is our customary practice, MBA will offer its policy feedback on the bills pertinent to real estate finance in a letter to the committee when the mark-up agenda is formally announced.

For more information, please contact Dan Grattan at (202) 557-2712 or Ernie Jolly at (202) 557-2736.

Mortgage Servicing and Subservicing Webinar Series
Join MBA Education and industry experts on July 17 and 24 for a two-part series on mortgage servicing and subservicing. The completion of this series will provide you with the information necessary to understand servicing and its related components. Anyone who seeks to increase their knowledge of mortgage servicing will benefit from these conversations that will cover critical topics such as how to manage and pick a subservicer, which loans should be retained, why or why not to retain servicing in today’s market, and profitability trends for servicers. To register for part I, please clickhere. To register for part II, please click here. To receive a discount for registering for both, please email education@mba.org.

For questions, please contact Danielle Jackson at 202-557-2873.

MBA Advocacy Update - 31 May 2019

Fri, 31 May 2019 13:00:00 GMT

Introduction
Congress was out this week in observance of the Memorial Day recess and will return to Washington next week. On Thursday, Congress passed an extension of the National Flood Insurance Program (NFIP) for two weeks. Also, FHA extended the comment period for public input regarding loan-level certifications.

Industry Update

Click on a headline to read more:

Click here for Upcoming MBA Conferences and Events

MBA Working For You

NFIP Reauthorized for Two Weeks; Program Lapse Avoided
The National Flood Insurance Program (NFIP) was set to expire on May 31, 2019. Reauthorization appeared to be a done deal when it was included in a disaster relief package passed by the Senate last week in an 85-8 vote.That package would have extended the program’s authorization through September 30, 2019.The House was then expected to pass the package by unanimous consent, as most House members had already left town for the holiday weekend. Unfortunately, unanimous consent failed last week and again this past Tuesday when one member objected. After experiencing procedural hurdles, the House eventually passed a different Senate bill that would extend the NFIP for two weeks, buying legislators time to negotiate a longer-term extension. Considering a threat of an NFIP lapse, MBA sent a joint coalition letter to Congress urging congressional leaders to immediately extend the NFIP.

For more information, please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at
(202) 557-2712.

FHA Grants Extension for Comments Regarding Loan-Level Certifications

On Thursday, the Federal Housing Administration (FHA) announced that it will extend the public feedback period on its proposed revisions to the Addendum to Uniform Residential Loan Application posted on the Single Family Housing Drafting Table (Drafting Table) on hud.gov until 11:59 PM (Eastern) on June 30, 2019. The original feedback end date was June 8, 2019. The proposed revisions to the Addendum to Uniform Residential Loan Application were previously announced in FHA INFO 19-18 on May 9, 2019. FHA is extending the feedback period to give interested parties additional time to review and submit feedback on the proposed changes.

Please note that while the extension is granted for comments onthe Loan-Level Certifications only, the feedback deadlines for the Annual Lender Certifications and the Defect Taxonomy — also posted on the Drafting Table — remain the same, and end on June 8, 2019.

For more information, please contact Dan Fichtlerat (202) 557-2780 or Fran Mordi at (202) 557-2860.

MBA Provides Comments to Ginnie Mae on VA Cash-Out Refinances

Earlier today, MBA submitted comments to a Ginnie Mae Request for Input on Pooling Eligibility Changes for VA cash-out refinances with higher loan-to-value ratios.

In its comments, MBA reiterated its long-running emphasis on the need to protect borrowers, lenders, and investors from the serial refinancing—or “churning” —of VA loans. MBA also provided specific feedback on three pooling restrictions considered by the RFI: creating single-Issuer custom pools for high-LTV VA cash-out refinances, creating a new category of multi-Issuer pools that include only these loans, or imposing a de minimis standard to limit the concentration of these loans in any given pool. Further, MBA provided mechanisms for Ginnie Mae to better narrow the scope of loans affected by any policy changes, both by Issuer and by loan type.

As a reminder, MBA recently submitted comments to VA detailing a series of recommendations on the parameters of cash-out refinances to deter loan churning, slow Ginnie Mae prepayment speeds, and protect consumers. MBA drew upon this work in developing its response to the Ginnie Mae RFI.

For more information, please contact Dan Fichtler at (202) 557-2780.

MBA Asks FHFA to Delay GSE Early Implementation of the Uniform Residential Loan Application (URLA)

On Wednesday, MBA sent a letter to FHFA Director Mark Calabria requesting a delay to the July 1, 2019, optional adoption date for the Uniform Residential Loan Application (URLA). This request follows similar conversations that MBA President and CEO Bob Broeksmit had with Director Calabria and the GSEs during MBA’s 2019 Secondary Conference last week. MBA made this request due to concerns that the optional adoption period would create severe logistical challenges for the industry, requiring each lender to coordinate with every one of its business partners to develop a separate implementation plan. MBA also expressed concerns that some of the government housing agencies (FHA, VA, USDA) might not be ready to fully support the new URLA by the July 1 date. MBA requested that the February deadline for mandatory adoption also be reassessed should any the agencies be deemed unlikely to meet that date. MBA will continue to communicate with FHFA and the GSEs to address these concerns.

For more information, please contact Rick Hill at (202) 557-2718 or Dan Fichtler at (202) 557-2780.

Agencies Publish Long-Awaited Final Rules on Mortgage Servicing Assets (MSAs) For Non-Advanced Approaches Banks
On May 28, the OCC, FDIC, and Federal Reserve Board (the agencies) released final rules on their September 2017 proposal to simplify certain aspects of the Basel III capital rules for non-advanced approach banking organizations. The original proposal increased the amount of MSAs that a bank can include in Tier 1 capital from 10% to 25%, and retained the risk weighting for MSAs not deducted from Tier 1 capital at 250%. The final rule made no substantive changes to the proposal. MBA has been advocating for years for an increase in the Tier 1 cap (above even the proposed 25%) and a reduction in the risk weighting. This action represents a partial win on the cap, but MBA is disappointed that the cap was not increased further and that the excessive risk weighting was left unchanged. We are still reviewing the entire document and will follow up with any other pertinent details in the final rules.

The rules are effective April 1, 2020, but a banking organization is allowed to early adopt. As expected, these final rules supersede and, in effect, eliminate the 2017 transition rules.

For more information, please contact Fran Mordi at (202) 557-2860.

Senate Banking Committee to Hold Hearing on Nominations
On Wednesday, June 5, the Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on the following Executive Branch nominations: Thomas Peter Feddo, of Virginia, to be an Assistant Secretary of the Treasury for Investment Security; Nazak Nikakhtar, of Maryland, to be Under Secretary of Commerce for Industry and Security; Ian Paul Steff, of Indiana, to be Assistant Secretary of Commerce and Director General of the United States and Foreign Commercial Service; Michelle Bowman, of Kansas, to be a Member of the Board of Governors of the Federal Reserve System; Paul Shmotolokha, of Washington, to be First Vice President of the Export-Import Bank of the United States; and Allison Herren Lee, of Colorado, to be a Member of the Securities and Exchange Commission.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barry at (202) 557-2913.

New York Senate and Assembly Banking Committee Chairs Introduce Companion Bills to Clarify State’s 2018 AMC Minimum Standards Law
This week, the Chairs of the New York State Senate and Assembly Committees on Banks introduced companion legislation (SB-6249 and AB-8024, respectively) to amend law enacted last year that established Dodd-Frank-required minimum standards for appraisal management companies (AMCs). The new law went into effect on April 27 despite strongly expressed concerns from the industry about the NY Department of State’s extremely narrow legal interpretation of Section 160-jjjj(3) that runs counter to the legislative intent of the law. As a result, AMCs and lenders stopped using unlicensed individuals for non-appraiser services such as broker price opinions, property condition reports and more. The new bills would clarify that an AMC may hire or contract a person for property inspections or property evaluations if they are licensed as an appraiser, real estate broker, or home inspector, or a person for a broker price opinion if they are licensed as a real estate broker. The bills are the result of efforts by the NYMBA, Mortgage Action Alliance members, and industry volunteers and partners. Given the bills’ sponsorship, they are expected to move through their respective committees to a floor vote in the remaining days of the state’s legislative session.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

MBA Reconvenes NMLS Working Group

Recently, due to the numerous developments affecting state-licensed companies and the NMLS, MBA reconvened its NMLS Working Group to discuss, among other issues, the proposed NMLS 2.0 changes and the MLO licensing process.The group will meet quarterly and is open to employees of MBA regular member companies or select- or premier-level associatemember companies. During its inaugural meeting, the group asked MBA staff to organize emerging issues they are facing as they prepare to implement MLO Temporary Authority. The next meeting will be held the week of July 29.

For more information or to participate, please contact Kobie Pruitt at (202) 557-2870.

MBA to Hold Webinar on MLO Temporary Authority; Conference of State Bank Supervisors to Participate
MBA Education will hold a live Compliance Essentials webinar at 2:00 p.m. ET on July 11 to discuss the implementation of the new federal Mortgage Loan Originator (MLO) Temporary Authority law and what companies need to know to take advantage of this business opportunity. MBA's Senior Vice President of Residential Policy and Member Engagement, Pete Mills, will lead a discussion that will include Bill Young, Vice President of NMLS Business Services at the Conference of State Bank Supervisors (CSBS). Bill’s team at CSBS is in the process of redesigning the MLO licensing components of the NMLS to prepare for Temporary Authority’s November 24 implementation, and this is a chance to hear directly from, and ask questions of, CSBS on the status of that effort. Also participating is Haydn Richards, Partner at Bradley, to walk through many new operational challenges and legal compliance requirements that member companies should be considering ahead of implementation. To register for the webinar, click here.

For more information, please contact William Kooper at (202) 557-2737 or Lisa Volb at (202) 557-2919.

Compliance Essentials Webinar on Proposed Amendments to Reg F

Join MBA Education on June 13 as subject matter experts examine the proposed amendments to Reg F and the impact on the Fair Debt Collection Practices Act. Speakers will address changes including who is covered under the proposed amendments, updated disclosure requirements, conduct and communication requirements, and a few issues not addressed in the Proposed Rule and potential interplay with state debt collection laws. To register for this webinar, please click here.

For more information, please contact Lisa Volb at (202) 557-2919.

TMBA Legislative Report - May 31, 2019 | Issue 16

Fri, 31 May 2019 13:00:00 GMT

Issue 16 May 31, 2019

IT'S A WRAP (almost)!! Texas Legislature Adjourns

The Texas House and Senate wrapped up their respective business for the 86th Legislative Session on Memorial Day and formally adjourned well before the midnight deadline. Texas Mortgage Bankers Association was able to achieve all of its legislative goals, or so it looks as of the end of the Session. Two or our legislative measures, SB 2128 ("paper out" of electronic documents) and SB 2330 (temporary or transitional authority for loan originators) passed during the last days of the Session and await the Governor's signature before they become law. The Governor has until Sunday, June 16th to veto bills (Happy Father's Day!). While these two measures are still subject to potential veto, we believe that we would have heard from the Governor's office before now if there was an anticipated problem.

So here is a look at where we stand as we head into the Veto period:

SB 614 (Nichols, Lambert). The highest priority for TMBA this Session was preserving the existence of the Department of Savings and Mortgage Lending as an independent agency within the Finance Commission to oversee the mortgage industry and state chartered thrifts. SB 614 did just that by extending the lives of Savings and Mortgage Lending, Department of Banking, and Finance Commission until September 1, 2031. The Office of Consumer Credit Commissioner was extended under a separate bill. The bill did include some minor changes to the licensing provisions of Chapter 157 by eliminating the "good moral character" requirement. Remember that under Texas occupational licensing standards the applicant for a license bears the burden of proof that he or she is qualified as contrasted with the licensing agency having the burden to show the applicant is not qualified. Because "good moral character" is such a subjective concept, the Sunset Commission for several years has recommended this term be eliminated from agency licensing statutes. For mortgage loan originators the "character qualification" remains somewhat more objective: "demonstrates financial responsibility, character, and general fitness so as to command the confidence of the community and to warrant a determination that the individual will operate honestly, fairly, and efficiently as a residential mortgage loan originator within the purposes of this chapter and any other appropriate regulatory law of this state" Finance Code 180.055(a) (3) (3). Each of the agencies' individual statutes were updated to include "standard" language on alternative dispute resolution and directions to review and update consumer complaint procedures. SB 614 was signed by the Governor on May 7th.

HB 1254 (Murphy/Hancock). Home equity lending on agricultural property can now become a reality. When the Constitutional amendments to 50(a) (6) were approved by voters in 2017, the prohibition on home equity loans for agricultural property was eliminated. However, the continued existence of Tax Code 23.42(a-1) has probably restrained extensive use of home equity loans. This provision prohibited an owner from claiming an agricultural use exemption for ad valorem taxes if the property was subject to a home equity loan. HB 1254 repealed this straggler provision.

SB 2128 (Creighton/Parker) "paper out" of electronic documents. TMBA partnered with the Texas Land Title Association and national underwriters Stewart Title and First American Title and representatives of the Texas County Clerks on this bill. Currently only about 62 or so out of 254 Texas counties record electronically. The statutes provide no clear guidance on how to record an electronic document in those counties. SB 2128 cures this by enacting amendments to Chapter 12 of the Property Code to add a new 12.0011(b) (3) and new 12.0013 that permits recording of a paper print out of an electronic document in the real property records if the paper print out has been verified as a true and correct print out of the electronic document; and the electronic document contains an electronic signature and electronic notarial acknowledgement. New 12.0013 contains a Declaration of Authenticity that may be completed by a notary public (or other officer authorized to take acknowledgements or administer oaths). The Declaration is to be attached to the paper print out and recorded. A document recorded in accordance with these new provisions are entitled to the same recognition as a document bearing a wet ink signature and notary. This bill and SB 2330, discussed below, came close to becoming collateral damage in the closing days of the Session. Members of the House attempted to hold up these two bills until they could get assurances from the Senate author that he would accommodate the House on amendments to totally unrelated bills. We don't know what deal was worked out, but we do know that these two bills were passed on the very last train out of town-the very last House and Local Consent Calendar. These bills have been advanced to the Governor's desk.

SB 2330 (Creighton/Parker) temporary authority to originate. In 2018, Congress amended the SAFE Act as part of S.2155, the financial regulatory reform bill that also amended Dodd-Frank. The SAFE amendments grant temporary authority to originate to a registered residential mortgage loan originator moving to a non-depository lender and to an out of state licensed residential mortgage loan originator for a 120 day period pending the granting of a license. SB 2330 conforms the Texas SAFE Act to mirror these changes to the federal act.

SOONERS NOT WELCOME. No offense to my Okie friends (after all my mom was born in a dug out in Hackberry Creek, Oklahoma and raised in Vinson, Oklahoma, and my grandfather homesteaded in what is known as "No Man's Land", that part of the Oklahoma Panhandle that was neither Texas, Kansas or Indian Territory) but I can almost guarantee that sometime in the next 18 months, I am going to get a call from a mortgage banker or an originator who jumped the gun on temporary authority and started originating before they complied with the requirements to qualify for temporary authority. They will have wound up on SML's naughty list because they did not follow the rules. I call these Sooner violations, like the settlers who sneaked across the line before the official day opening Oklahoma to settlement. The 120 day period does not start until the originator has submitted an application for a license and uploaded his/her fingerprints for a criminal background check; submitted personal information as required by Finance Code 180.054. Any originator that starts early will be considered to have engaged in unlicensed activity and any employer will be considered to have aided and abetted unlicensed activity. We have seen this one before, when SML granted a transition period to originators who worked for mortgage bankers were first required to have a license in 2009. A significant number of those originators dillied and dallied and did not meet the timelines. Monetary penalties followed. Also be aware that if an originator did not meet the qualifications, and is denied, all of the origination activity may be considered unlicensed. Mortgage bankers will need to be sure that the originators they onboard under temporary authority do in fact qualify for a license. Proceed with caution. Make sure you know all the requirements. One final note on SB 2330: the effective date is delayed until November 24, 2019. That is the date Congress established for the effective date of the amendments to federal SAFE.

Preserving lien priority; enforcing Deeds of Trust. Going into this legislative session we anticipated another fight to kill bills that threatened mortgage lien priority. Two bills drew our attention this session. HB 2024 (Romero) would have elevated a subcontractor's lien for retainage ahead of a mortgage lien. The bill received a hearing, and some empathy from members, but did not get voted out of House Business and Industry. The second bill HB 4295 (Johnson) did not alter lien priority, but it would have prohibited a lender from enforcing a deed of trust if the borrower had claimed an over 65 tax deferral or disable vet deferral for property taxes even though the mortgage requires taxes to be paid annually. This bill could have significantly restricted the availability of certain loan products particularly any loan insured by a federal agency. The bill received a hearing but died in House Ways and Means.

HB 4390 (Capriglione/Nelson). Data privacy. This bill started out as a comprehensive data privacy bill styled by its author as "California lite." The bill encountered severe resistance from many sectors of the business community. By the time it was scrubbed and passed by the Legislature, the bill had turned into a study bill establishing a working group to study data privacy issues. The bill does contain some extended consumer protections. It amends Business Code 521.053 to strengthen the notification requirements by businesses who have data breaches where a person's sensitive personal information that is stored by computer has been or may reasonably be expected to have been acquired by an unauthorized party. The notification must be made 'without unreasonable delay but in no event later than 60 days" after the breach. If the breach involves more than 250 individuals, the attorney general must be notified as well. The current statute language says the notice must be given "as quickly as possible." If signed by the Governor, the bill becomes effective January 1, 2020.

In the 'what we missed' department:HB 3 and Escrow Accounts. During every Legislative Session, we have concerns that with 5,000 plus bills and resolutions floating around, something will get buried in a bill that impacts financial services and will get missed. In this case it is a Senate amendment that was made to HB 3. The bill caption reads "relating to school finance and public education." But as part of school finance reform, the bill also provides for provisions to reduce school property taxes. Between TMBA, TBA, IBAT, and the lobbyists for Chase, Wells, Quicken, City, and B of A, there are probably at least 10 sets of eyes on this stuff, but this one slipped by. In the Senate, the bill was amended to add the following language: "To the extent that H.B. 3, 86th Legislature, Regular Session, 2019, has the effect of reducing property taxes in this state, a lender, or home loan servicer of a home loan that maintain a property tax escrow account must take into account the effect of that legislation in establishing the borrower's annual property tax payments to be held in that account and immediately adjust the borrower's monthly payments accordingly". It is the "immediately" that has folks scratching their heads. At least one national servicer in conversations this week has commented that experience with other states would indicate there is no way to begin until tax bills are received and that there are questions as to whether RESPA provisions may preempt this. My initial reactions are: 1) We can't know the impact until final tax bills are delivered; 2) the impact may be small for this year and smaller or non- existent for future years; and 3) RESPA conflicts may exist; and 4) servicers will be required to make these adjustments anyway when they do their annual escrow analysis. Stay tuned.

pdf version

MBA Advocacy Update - 24 May 2019

Fri, 24 May 2019 13:00:00 GMT

Introduction
This week, House appropriators passed a subcommittee spending bill allocating $50.1 billion for HUD in fiscal year 2020, including a specified $20 million for FHA’s single-family information technology (IT) infrastructure. Also, the Senate passed a two-week, standalone flood insurance program extension amid uncertainty about whether a disaster aid bill containing a longer renewal would be enacted before the program lapses. And Senators Kyrsten Sinema (D-AZ) and Thom Tillis (R-NC) began the process to request unanimous consent to pass a Senate companion proposal to House legislation that would make certain VA-guaranteed “orphaned loans” eligible for pooling as Ginnie Mae securities. Congress will be out next week in observation of the Memorial Day recess.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

No Upcoming Congressional Hearings

MBA Working For You

Appropriations Subcommittee Passes Spending Bill for Federal Housing Programs
On Thursday, the House Appropriations Subcommittee on Transportation, and Housing and Urban Development, and Related Agencies (T-HUD) marked up a spending bill that would provide HUD $50.1 billion for fiscal year (FY) 2020. Among other items, the bill provides $300 million for HUD’s Cybersecurity and Information Technology Fund, and importantly, also includes an MBA-requested $20 million for FHA’s single family IT infrastructure. Prior to the markup, MBA sent a letter to congressional offices outlining the industry’s priorities. This T-HUD subcommittee bill was passed unanimously, and will be now considered by the full House Appropriations Committee in June.

For more information, please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at
(202) 557-2712.

Senate Attempts to Move on VA Orphaned Loan Pooling Legislation
This week, Senators Kyrsten Sinema (D-AZ) and Thom Tillis (R-NC) began the process to request unanimous consent to pass a Senate companion measure to the Protect Affordable Mortgages for Veterans Act of 2019 (H.R. 1988). The bipartisan bill would correct a legislative drafting error that prevented VA-guaranteed “orphaned loans” from being eligible for Ginnie Mae pooling. The legislation would also provide a go-forward fix by changing the start date of the 210-day seasoning period from the date on which the first payment was made to the date on which the first payment was due, which would provide greater clarity for lenders. Earlier this month, the House Financial Services Committee (HFSC) and the House Veterans Affairs Committee (HVAC) both passed the H.R. 1988 by voice votes. Floor consideration by the full House of Representatives is expected to follow shortly after the Senate’s action to clear the Sinema/Tillis bill. Here is the full text of MBA’s letter to the HFSC and HVAC.

For more information please contact Erin Barry at (202) 557-2913 or Tallman Johnson at (202) 557-2866.

Senate Passes Disaster Supplemental That Includes NFIP Extension On Wednesday, the Senate passed a $19.1 billion disaster aid package after deal-makers jettisoned border wall/immigration funding that was a political obstacle to the bill’s passage. Included in the bill is a clean extension of the National Flood Insurance Program (NFIP) until September 30, 2019. The bill now heads to the House for consideration.

The Senate’s disaster relief bill provides aid for states affected by disasters in 2018 and 2019, as well as ongoing relief for disasters that occurred in 2017, including: agriculture disaster relief for farmers; development grants for small, rural communities; assistance for veterans’ health facilities and military construction projects; emergency funds for timber, watershed, and wastewater infrastructure needs; and resources to restore highways, aviation facilities, and other transit projects. The measure also includes $600 million in nutrition assistance and $304 million in Community Development Block Grant (CDBG) funding for Puerto Rico. The legislation further includes billions of dollars in additional funding for states in the Midwest and the South that have experienced catastrophic flooding and tornadoes in 2019. A full text of the bill can be found here.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barry at (202) 557-2913.

Republican Banking Senators Introduce CECL Delay and Study Legislation
On Wednesday, Senator Thom Tillis (R-NC) introduced S. 1564, the Continued Encouragement for Consumer Lending Act, along with fellow Banking Committee Senators Jerry Moran (R-KS), Kevin Cramer (R-ND), Tom Cotton (R-AR), David Perdue (R-GA), and Mike Rounds (R-SD). S. 1564 would require the Financial Accounting Standards Board (FASB) to halt implementation of its current expected credit loss (CECL) standard and work with the Securities and Exchange Commission (SEC) and financial regulators to review CECL’s effect and report the findings to Congress. Financial institutions would not be required to comply with the standard until one year after the report is submitted to Congress. Senator Tillis' legislation comes on the heels of recommendations made by MBA in its May 21^st letter to Congress calling for a quantitative study on the overall impact of CECL implementation, and a delay in enactment pending a completion of that study.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barry at (202) 557-2913.

House Passes Bill Making Administrative and Policy Changes at the CFPB
On Wednesday, the House of Representatives passed on party lines the Consumers First Act (H.R. 1500), legislation introduced by HFSC Chairwoman Maxine Waters (D-CA). The bill reverses certain administrative changes made under the tenure of Acting Director of the Consumer Financial Protection Bureau (CFPB) Mick Mulvaney. For example, the bill restores supervisory and enforcement powers of the fair lending office and limits the number of CFPB political appointees. The bill passed by a vote of 231-191 with the adoption of 14 amendments, including one from Rep. Nydia Velazquez (D-NY) that reverses legislative changes made to home mortgage disclosure requirements enacted last Congress. The bill is likely to die in the Senate and has largely been considered as a Democratic messaging bill.

For more information on the Consumers First Act, please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at (202) 557-2712.

HUD Secretary Carson Testifies In Front of House Financial Services Committee
Secretary of Housing Ben Carson, Sr., M.D., appeared before the HFSC this past Tuesday in what proved to be a spirited hearing.

Chairwoman Maxine Waters (D-CA) began the hearing by saying that Dr. Carson’s leadership of HUD causes her great concern, and noted her belief that the Trump Administration is actively causing harm and striving to make housing “less affordable and less fair.”

During the Q&A, Rep. Blaine Luetkemeyer (R-MO) said that regulatory burdens were a major reason for the lack of affordable housing. He asked Carson about the impact of the impending FASB rule on Current Expected Credit Loss (CECL) on the cost of housing affordability. Carson stated HUD is studying CECL carefully, noting, “We don’t want to make a mistake on that.”

Rep. Denver Riggleman (R-VA) addressed the need for HUD to modernize its “archaic” IT systems and asked about the status of the update. Carson stated that while their platforms are still 40 years old, HUD has created a dashboard that provides real-time information about their individual capacities. Carson also stated that FHA is in the process of updating its platforms as well, though it will take some time.
For more information, please contact Dan Grattan at (202) 557-2712 or Ernie Jolly at (202) 557-2741.

Treasury Secretary Returns to House Financial Services Committee
Following a contentious hearing last month, Treasury Secretary Steven Mnuchin returned to the House Financial Services Committee early Wednesday morning for Part II of The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System. Headlines from the hearing were focused on Treasury’s refusal to release President Trump’s tax returns to Congress, domestic effects of tariffs on Chinese products, and the potential for changes to the $20 bill, among other items.

Of particular interest to MBA, Rep. Barry Loudermilk (R-GA) asked Secretary Mnuchin about the nature and coordination of reforms to Fannie Mae and Freddie Mac between the Legislative and Executive branches. Secretary Mnuchin once again encouraged Congress to act in a bipartisan manner, and agreed that the administration will need to work with Congress on the most significant parts of GSE reform.

For more information, please contact Dan Grattan at (202) 557-2712 or Ernie Jolly at (202) 557-2741.

Senate Passes TRACED Act
On Thursday, the Senate passed the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act (S. 151) by a vote of 97-1. The bill, sponsored by Senator John Thune (R-SD) and Ed Markey (D-MA), must now be considered by the House of Representatives. If enacted, the bill would amend the Telephone Consumer Protection Act (TCPA) by requiring voice service providers to establish a call-authentication network to combat spoofing.

For more information please contact Erin Barry at (202) 557-2913 or Tallman Johnson at (202) 557-2866.

FHA Issues Technical Correction in FHA-HAMP Eligibility Section of Handbook Update
Last Friday, FHA issued a technical correction for an error identified by MBA and its members in the Single Family Housing Policy Handbook 4000.1 update. MBA sent a letter to FHA outlining an error in the FHA-HAMP borrower qualification section. The section stated that an FHA-HAMP modification and the resulting monthly mortgage payment of less than 40 percent of the borrower’s gross monthly income was only available to borrowers whose existing front end ratio is less than 31 percent. FHA released a technical correction affirming that the section should read “greater than,” and servicers should continue using the previous FHA-HAMP evaluation criteria as outlined before the handbook update.

MBA will continue advocating against publishing handbook updates "effective immediately." According to FHA representatives, another handbook update is planned for September 2019.

For more information, contact Hanna Pitz at (202) 557-2796.

CFPB Releases Spring 2019 Rulemaking Agenda
On Wednesday, the CFPB released its Spring 2019 Rulemaking Agenda outlining the “regulatory matters that the Bureau reasonably anticipates having under consideration during the period from May 1, 2019, to April 30, 2020.” As expected, much of the Bureau’s rulemaking activity will focus on implementing the statutory directives of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA). This includes creating ability-to-repay (ATR) requirements for PACE financing, HMDA reporting exemptions for certain small lenders, as well as various guidance documents to support EGRRCPA implementation.

In addition, the agenda confirms the Bureau’s plans to continue several previously announced discretionary rulemakings involving HMDA and the Fair Debt Collection Practices Act (FDCPA). With respect to the FDCPA, which was the subject of a Notice of Proposed Rulemaking issued earlier this month, the Bureau intends to address concerns with certain communication practices and consumer disclosures in the debt collection market. Regarding HMDA, the Bureau will consider responses to its May 2019 Advance Notice of Proposed Rulemaking to determine the extent of any changes to the data points added or revised by the 2015 HMDA Rule. In addition, the Bureau expects “to issue a Notice of Proposed Rulemaking concerning the public disclosure of HMDA data in light of consumer privacy interests.”

The Bureau also announced several new projects and regulatory plans. In a development long urged by MBA, the Bureau stated its intent to focus on the expiring GSE qualified mortgage (i.e. the patch) and “determine whether rulemaking or follow up activity is appropriate concerning the patch or other aspects of the ATR/QM rules.” In addition, the Bureau will conduct a section 1022(d) assessment of the TILA-RESPA Integrated Disclosure Rule. The release concludes by explaining that “Bureau leadership is considering further prioritization and planning of the Bureau’s rulemaking activities,” and “expects by no later than the Fall 2019 Agenda to issue a more comprehensive statement of priorities[.]”

For more information, please contact Justin Wiseman at (202) 557-2854 or Blake Chavis at (202) 557-2930.

Mortgage Closings in the City of Baltimore Resume after Ransomware Attack
Late on Friday, May 17, the City of Baltimore released guidance on a manual “work around” to allow real estate transactions to proceed, starting Monday, May 20, after a recent ransomware attack resulted in the disabling of the municipality’s computer infrastructure. The attack on Baltimore’s IT system led to near complete halting of all real estate finance transactions for properties located in the city, because there was no available method to issue accurate lien certificates. After several days of industry engagement (including MBA’s outreach to state regulators, the GSEs, and our industry sister trades), the City released its “work around” to resume lending. The situation remains unresolved and is subject to an ongoing FBI investigation, but the announced process, while far from ideal, is allowing transactions to proceed, albeit more slowly. MBA members closing loans in Baltimore should plan on those transactions taking longer than normal. MBA will provide any updates as the issue develops.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

MBA to Hold Webinar on MLO Temporary Authority; Conference of State Bank Supervisors to Participate
This week, MBA Education announced that it will hold a live Compliance Essentials webinar at 2:00 p.m. ET on July 11 to discuss the implementation of the federal new Mortgage Loan Originator (MLO) Temporary Authority law and what companies need to know to take advantage of this business opportunity. MBA Senior Vice President of Residential Policy and Member Engagement, Pete Mills, will lead a discussion that will include Bill Young, Vice President of NMLS Business Services at the Conference of State Bank Supervisors (CSBS). Bill’s team at CSBS is in the process of redesigning the MLO licensing components of the NMLS to prepare for Temporary Authority’s November 24 implementation, and this is a chance to hear directly from, and ask questions of, CSBS on the status of that effort. Also participating is Haydn Richards, Partner at Bradley, to walk through many new operational challenges and legal compliance requirements that member companies should be considering ahead of implementation. To register for the webinar, click here.

For more information, please contact William Kooper at (202) 557-2737 or Lisa Volb at (202) 557-2919.

MBA Education Webinar on Recent Activity with Consumer Complaints
Join MBA Education on May 29 for a look at recent activity and best practices with managing consumer complaints. Handling consumer complaints has become one of the most important functions a financial services company must do to avoid extreme reputational harm, increased regulatory direction, and severe monetary penalty. In this webinar, legal and compliance experts will guide you through the background and regulatory requirements, fundamentals, and practices to assist your company in reducing the inherent risks of complaints going unresolved. To register for this webinar, please click here.

For more information, please contact Lisa Volb at (202) 557-2919.

MBA Advocacy Update - 10 May 2019

Fri, 10 May 2019 13:00:00 GMT

Introduction
This week, FHA proposed new guidelines on Loan-Level and Annual Certifications, as well as a new Defect Taxonomy. The House Committees on Financial Services and Veterans’ Affairs both passed the Protect Affordable Mortgages for Veterans Act of 2019, a technical correction to allow a specific cohort of VA “orphan” loans to be pooled into Ginnie Mae securities. And Oklahoma Governor Kevin Stitt signed SB 915 into law, which will enable the use of remote online notarization (RON) in the state.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

May 15 - Senate Banking Committee: Oversight of Financial Regulators

Click here for Upcoming MBA Conferences and Events

MBA Working For You

FHA Proposes New Lender Certification Requirements

This week, FHA announced its long-awaited Proposed Revisions to the Certifications and Defect Taxonomy. These changes are the result of years of advocacy by MBA to reduce lender exposure to risk arising from overzealous use of the False Claims Act. They are being proposed in an effort to give additional clarity and to streamline FHA program requirements while continuing to fulfill FHA’s duty to protect the Mutual Mortgage Insurance Fund (MMIF). FHA is seeking public feedback on these proposed changes, specifically to its loan-level certifications, annual lender certifications, and the Defect Taxonomy. Key highlights from the announcement include:

Loan-Level Certifications: FHA is completely revising the Addendum to Uniform Residential Loan Application;
Annual Lender Certifications: The proposal changes annual lender certifications to better align them with existing statute. Changes are intended to address industry concerns by streamlining the certification statements, while continuing to hold lenders accountable for compliance with all HUD eligibility and approval requirements; and
Defect Taxonomy: Updates will provide more clarity and transparency into FHA’s existing loan-level quality assurance processes.

MBA released a statement of support and will continue to work with HUD as we have been in constant communication throughout this process. For a side-by-side comparison of existing language and the proposed changes, please click here.

For more information, please contact Andrea Oh at (202) 557-2922 or Julienne Josephat (202) 557-2782.

House Committees Pass Bill to Provide Certainty Regarding Mortgage Loans to Veterans On Wednesday, the House Committees on Financial Services and Veterans’ Affairs passed the Protect Affordable Mortgages for Veterans Act of 2019, H.R. 1988. The bipartisan bill, introduced by Reps. David Scott (D-GA) and Lee Zeldin (R-NY), would correct a legislative drafting error that prevented VA-guaranteed “orphaned loans” from being eligible for Ginnie Mae pooling. The legislation would also provide a go-forward fix by changing the start date of the 210-day seasoning period from the date on which the first payment was made to the date on which the first payment was due, which would provide greater clarity for lenders. The legislative fix would promote liquidity and enable impacted VA lenders to provide more mortgage credit to veterans. The full text of MBA’s letter to the Financial Services and Veterans’ Affairs committees can be found here.

For more information, please contact Dan Grattan at (202) 557-2712 or Ernie Jolly at (202) 557-2741.

House Veterans Committee Advances Blue Water Navy Bill
On Wednesday, the House Veterans’ Affairs Committee passed the Blue Water Navy Vietnam Veterans Act of 2019, H.R. 299, which advanced by voice vote. The bill, introduced by Rep. David P. Roe (R-TN), would extend certain health benefits to veterans who served in Southeast Asia and Korea, and were affected by diseases associated with Agent Orange. While MBA applauded the Committee’s efforts to ensure adequate medical care for veterans who may have been exposed to dangerous chemicals in the course of their service, MBA raised concerns about a provision that would increase fees charged to veterans in connection with the Department of Veterans Affairs (VA) Home Loans program. MBA will continue to engage Congress and urge legislators to ensure that housing-related revenue is not used to pay for non-housing-related spending. The full text of the Veterans’ Affairs Committee can be found here.

For more information, please contact Dan Grattan at (202) 557-2712 or Ernie Jolly at (202) 557-2741.

House Passes Bill to Extend National Flood Insurance Program Through Fiscal Year 2019
Today, the House of Representatives passed H.R. 2157, the Supplemental Appropriations Act, 2019, sponsored by Rep. Nita Lowey (D-NY), Chair of the Appropriations Committee.

This supplemental appropriations bill includes a provision that would extend the National Flood Insurance Program, due to lapse at the end of May, through the end of this fiscal year on September 30, 2019. The bill, which passed by a 257-150 vote, also includes $17 billion in aid for certain disaster-stricken communities.

In a joint coalition letter sent to Congress, MBA has advocated for an extension of the NFIP in the absence of consensus agreement among legislators to reform the program. The legislation now heads to the Senate for its consideration.

For more information, please contact Dan Grattan at (202) 557-2712 or Ernie Jolly at (202) 557-2741.

Senate Banking Committee Holds Hearing on Data Privacy
On Wednesday, the Senate Banking Committee held a hearing entitled, Privacy Rights and Data Collection in a Digital Economy. Witnesses included Peter Chase, Senior Fellow, the German Marshall Fund of the United States; Jay Cline, Privacy and Consumer Protection Leader, Principal, PwC; and Maciej Ceglowski, Founder, Pinboard. Senate Banking Chairman Mike Crapo (R-ID), who is in the early stages of crafting a potential data privacy bill, used the hearing to examine the European Union’s General Data Protection Regulation and other approaches to data privacy, such as the effect on the financial services industry and how companies collect and use information in marketing and decision-making related to credit, insurance, or employment. Chairman Crapo and Ranking Member Senator Sherrod Brown (D-OH), indicated there was bipartisan support to address data privacy concerns. “There’s enough agreement here,” Brown said. “Unlike some issues that we’ve had greater differences on, this is something that we can really do.”

On February 13, 2019, in a rare bipartisan request, Chairman Crapo and Ranking Member Brown invited feedback from the public on the collection, use, and protection on sensitive information by financial regulators and private companies. MBA submitted its feedback and supports efforts to ensure that no consumer is unwittingly exposed to harm by unintentionally providing his or her personal data to unscrupulous actors. However, MBA suggested not to prevent the careful use of data to improve the efficiency of mortgage origination. The full text of MBA’s letter to the Banking Committee can be found here.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barryat (202) 557-2913.

Ginnie Mae Extends Deadline for Comments on VA Cash-Out Refinances
Earlier this week, Ginnie Mae extended the deadline for responses to its recently-issued Request for Input on Pooling Eligibility Changes from May 22 to May 31. As a reminder, this RFI addresses the prepayment behavior of VA-guaranteed cash-out refinances with higher loan-to-value ratios.

More specifically, the RFI considers the potential for Ginnie Mae to place restrictions on the pooling of VA cash-out refinances with LTV ratios above 90 percent. Options explicitly noted in the RFI include creating single-issuer custom pools for these loans, creating a new category of multi-issuer pools that include only these loans, or imposing a de minimis standard to limit the concentration of these loans in any given pool.

In February, MBA submitted comments to VA detailing a series of recommendations on the parameters of cash-out refinances to deter loan churning, slow Ginnie Mae prepayment speeds, and protect consumers. MBA will draw upon this work in developing further recommendations in response to the Ginnie Mae RFI.

For more information, please contact Dan Fichtler at (202) 557-2780.

MBA Submits Comments on CFPB PACE ANPR
On Tuesday, MBA submitted comments on CFPB’s Advance Notice of Proposed Rulemaking (ANPR) on residential Property Assessed Clean Energy (PACE) financing. The ANPR follows from Section 307 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), which directs the Bureau to create regulations applying TILA’s ability to repay requirements to PACE loans. The Bureau will use information gathered during the ANPR phase to inform later rule writing. MBA’s comments highlight several issues with PACE finance including the lack of consumer protections and the “super-lien” status afforded PACE loans. MBA urges the Bureau to treat PACE loans like mortgage loans, given that both forms of real estate finance pose similar risks for consumers. Specifically, PACE lenders should be subject to TILA’s ability to repay, disclosure, and licensing requirements. MBA also suggests offering Qualified Mortgage protections for subordinated PACE loans.

For more information about MBA’s comments or the Bureau’s PACE rule writing process, please contact William Kooper at (202) 557-2737 or Justin Wiseman at (202) 557-2854.

CFPB Issues Proposed Rule on Fair Debt Collection Practices
On Wednesday, the CFPB released a notice of proposed rulemaking on amendments to Regulation F, 12 CFR Part 1006, which implements the Fair Debt Collection Practices Act (FDCPA). This rule is the first major FDCPA rulemaking since the statute's passage in 1977. The announcement included two supporting documents: a Fast Facts sheet on the rule, and a flowchart outlining how to view electronic disclosures. The Bureau seeks comment on proposed revised definitions, communication restrictions and regulations, and required disclosures applicable to debt collectors as defined in the Act. Of particular note is that the rule’s definition of debt collector maintains the traditional understanding that those who collect on their own loans or acquire loans that are performing are not defined as debt collectors. MBA is currently reviewing the proposed rule and will provide a summary shortly.

For more information, please contact Hanna Pitz at (202) 557-2796 or Sara Singhas at (202) 557-2826.

FHFA Adds Two New Officials to its Leadership
The Federal Housing Finance Agency (FHFA) added two new officials to its leadership ranks this week, Christopher Bosland and Meghan Patenaude. Bosland is slated to serve as a Senior Adviser for Regulatory Affairs and Patenaude joins as a Senior Policy Advisor.

For more information, please contact Dan Fichtler at (202) 557-2780

MBA’s Campaign for Consistent Remote Online Notarization Laws and Rules Continues to Gain Momentum: Oklahoma Enacts a New RON Statute and Tennessee Adopts Rules for RON Implementation
On Thursday, Oklahoma Governor Kevin Stitt signed SB 915 into law, which will enable the use of remote online notarization (RON) in the state. The statutory language of SB 915 is consistent with the contours of the MBA-American Land Title Association (ALTA) model state RON bill. Oklahoma becomes the ninth state in 2019 to enact RON legislation and the 19th state to establish RON as a permissible method of performing notarizations. Moreover, the Tennessee Secretary of State recently adopted emergencyrules to provide consumers with the option of using RON for electronic documents. Tennessee’s RON rules are consistent with the MISMO RON Working Group’s modelstandards, which along with the MBA-ALTA state model RON bill continues to help establish a national consensus among state policy makers for RON rules and laws.

For more information, please contact William Kooper (202) 557-2737 or Kobie Pruitt(202) 557-2870.

MBA and State Partners Meet with Commissioner Taylor to Discuss AMC Licensing and Regulation in Washington, D.C.
On Tuesday, MBA, the Mortgage Bankers Association of Metropolitan Washington (MBA/MW), the Maryland Mortgage Bankers and Brokers Association (MMBBA), and the Real Estate Valuation Advocacy Association (REVAA) met with Commissioner Stephen Taylor of the Washington, D.C., Department of Insurance, Securities, and Banking to discuss the importance of implementing regulations to establish Dodd-Frank-required minimum standards for appraisal management companies (AMCs). Without legislation or clear, written guidance regarding enforcement of AMCs by the August 2019 deadline, these entities will be barred from participating in all federally related transactions in the District. In addition, AMCs and lenders would immediately have to stop using unlicensed individuals for non-appraiser services such as broker price opinions, property condition reports and more.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

Tennessee Adopts Emergency Rules to Implement its Remote Online Notarization Law
Effective immediately, the Tennessee Secretary of State has adopted emergencyrules to provide consumers with the option of using remote online notarization (RON) for electronic documents. Tennessee’s RON rules are consistent with the MISMO RON Working Group’s model standards, which along with the MBA-ALTA state model RON bill continue to help establish a national consensus among state policy makers for RON rules and laws.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

Compliance Essentials Webinar on ECOA Case Law
Join MBA Education and the Compliance Essentials program on May 15 to examine the roots of ECOA regulations and how courts have interpreted them in shaping the current body of fair credit law. In particular, the webinar will discuss the courts’, as well as the CFPB’s, views of disparate impact under ECOA and the status of disparate impact under the current administration. The webinar will conclude with observations about complying with ECOA in a changing regulatory and legal environment. To register for this webinar, please click here.

For more information, please contact Lisa Volb at (202) 557-2919.

MBA Advocacy Update - 03 May 2019

Fri, 03 May 2019 13:00:00 GMT

Introduction
Congress returned to work after a two-week recess. The House Financial Services Committee held a hearing examining a proposal to significantly increase federal spending on affordable housing as an infrastructure modernization imperative. Also, the CFPB released two proposed rulemakings related to HMDA. And MBA President and CEO Bob Broeksmit took part in a panel discussion on housing finance reform at the Milken Institute Global Conference 2019.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

May 7 - U.S. Senate Banking Committee: Privacy Rights and Data Collection in a Digital Economy

May 8 - U.S. House Committee on Financial Services: A Review of the State of and Barriers to Minority Homeownership

May 8 - U.S. House Committee on Financial Services: Full Committee Markup

Click here for Upcoming MBA Conferences and Events

MBA Working For You

CFPB Issues Two Proposed Rulemakings Relating to HMDA
This week, the Bureau of Consumer Financial Protection (CFPB) issued a Notice of Proposed Rulemaking (NPRM) and an Advance Notice of Proposed Rulemaking(ANPR) related to the Home Mortgage Disclosure Act (HMDA). The NPRM proposes two alternatives that would permanently increase the coverage threshold from 25 to either 50 or 100 for closed-end mortgage loans, and also extend for two years the 500 loan threshold for open-ended lines of credit with a permanent threshold of 200 loans. The ANPR seeks information on the costs and benefits of collecting and reporting the data points in the 2015 HMDA Rule added to Regulation C, and certain pre-existing data points that the 2015 HMDA Rule revised. It is important to note that ANPRs are often a prelude to a notice of proposed rulemaking, so any changes in these areas would be made well into the future. The Bureau has posted a summary of the proposed rulemaking and an unofficial, informal redline of the proposed amendments to Regulation C to assist industry and other stakeholders in reviewing the proposed changes. The summary is available here and the redline is available here. Comments on the NPRM are due 30 days after publication in the Federal Register, and comments on the ANPR are due 60 days after publication in the Federal Register.

For more information, please contact Justin Wiseman at (202) 557-2854 or Blake Chavis at (202) 557-2930.

House Subcommittee Focuses on Diversity & Inclusion in Financial Services
This past Wednesday, the Subcommittee on Diversity and Inclusion of the House Financial Services Committee held a hearing entitled, “Good for the Bottom Line: A Review of the Business Case for Diversity and Inclusion,” to examine data and discuss research that details the benefits that can be achieved when financial services organizations implement robust diversity and inclusion practices in hiring and advancement practices.

During the “Q&A” portion of the hearing, Subcommittee Chairwoman Joyce Beatty (D-OH) focused her questions to the expert panel on paths to success for both the hiring and retention of diverse employees in both the private and public sector. Ranking Subcommittee Member Ann Wagner (R-MO) noted that diversity and inclusion are essential for future growth and innovation in the financial services industry and asked panelists for specific strategies to implement to ensure diverse work forces in the industry.

For more information, please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at (202) 557-2712.

House Financial Services Committee Discusses Affordable Housing in Context of Infrastructure Spending
This past Tuesday, the full House Financial Services Committee held a hearing examining a proposal to significantly increase federal spending on affordable housing as an infrastructure modernization imperative. The hearing focused on Chairwoman Maxine Waters’ (D-CA) legislative draft entitled, “The Housing is Infrastructure Act of 2019.” This legislation would authorize $92 billion in funding for several housing infrastructure projects, including a huge reinvestment in public housing. Specifically, it calls for $70 billion for the Public Housing Capital Fund (PHCF) to pay for public housing backlogs; $5 billion for disaster mitigation efforts; and $5 billion for the Housing Trust Fund (HTF) to provide housing for the lowest-income households. Witnesses included low-income housing advocates, professionals serving public housing authorities, and industry representatives (NAHB and NMHC).

During the hearing, Chairwoman Waters discussed the affordable rental housing shortage throughout the United States, citing the National Low Income Housing Coalition’s (NLIHC) estimates of a shortfall of approximately 7.2 million affordable rental housing units. Republicans recognized the significance of the affordable housing issue, though they cited significant costs and issues with local regulations in affordable housing development as a hurdle. Ranking Member Patrick McHenry (R-NC) and Andy Barr (R-KY) also expressed support for HUD’s Rental Assistance Demonstration (RAD) program.

During the “Q&A” portion of the hearing, Rep. Rashida Tlaib (D-MI) expressed concerns that banks are discriminating against low-income and minority Americans seeking mortgages. Diane Yentel of NLIHC responded that ensuring underserved communities have access to credit is paramount, and spoke in support of Fannie Mae and Freddie Mac’s Duty to Serve plans.

For more information please contact Ernie Jolly at (202) 557-2741 or Dan Grattan at (202) 557-2712.

Senate Banking Committee Holds Hearing Regarding Regulatory Guidance
This past Tuesday, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled, “Guidance, Supervisory Expectations, and the Rule of Law: How do the Banking Agencies Regulate and Supervise Institutions?” The witnesses included: Greg Baer, President and Chief Executive Officer, Bank Policy Institute; Margaret Tahyar, Partner, Davis Polk & Wardwell LLP; and Patricia McCoy, Professor of Law, Boston College Law School. During the hearing, Chairman Mike Crapo (R-ID) urged regulators to provide clear guidance and uniform instructions to examiners. Ranking Member Sherrod Brown (D-OH) and Senator Catherine Cortez Masto (D-NV) both raised concerns about the April 11, 2019, Office of Management and Budget (OMB) memo, “Guidance on Compliance with the Congressional Review Act," which applies an Office of Information and Regulatory Affairs (OIRA) oversight process to independent banking regulators. In response to a question from Senator Cortez Masto, McCoy stated, “OMB and OIRA have no statutory authority to tell the federal bank regulators how to conduct their cost benefit analysis. In fact, they are barred from doing so.”

For more information, please contact Erin Barry at (202) 557-2913 or Tallman Johnsonat (202) 557-2866.

Ginnie Mae Solicits Feedback on Potential Changes to MBS Pool Eligibility Parameters
Today, Ginnie Mae published a Request for Input (RFI) as it considers making changes to the parameters governing loan eligibility for pooling of mortgages into its security. This RFI is a part of the agency’s continuing effort to monitor and support the market performance of the Ginnie Mae mortgage-backed securities (MBS). The publication of the RFI follows policy changes already implemented by Ginnie Mae and the Department of Veterans Affairs (VA) to address abnormal prepayment patterns in some mortgages pooled in Ginnie Mae MBS that negatively affect MBS pricing, to the detriment of home mortgage loan affordability.

The RFI provides background information and analysis for consideration and specifically requests input concerning the potential removal from, or the restriction of, certain cash-out refinance mortgages within the Ginnie Mae II MBS. An item for consideration is the potential for VA cash-out refinances in excess of 90% loan-to-value to be excluded, or restricted, from the multi-issuer pools, given their performance history in the securities and the program requirement differences relative to FHA and the GSEs. All responses to the RFI are to be submitted to Ginnie Mae by May 22, 2019.

In February, MBA submitted comments to VA detailing a series of recommendations to deter VA loan churning. MBA is also in regular communication with VA and Ginnie Mae regarding these issues, and we remain committed to ending the practice of loan churning targeted at service members, veterans, and surviving spouses, while preserving their legitimate refinancing opportunities.

For more information, please contact Dan Fichtler at (202) 557-2780.

MBA CEO Bob Broeksmit Discusses Housing at Milken Global Conference 2019
This week, the Milken Institute held its Global Conference 2019 in Beverly Hills, CA. MBA President and CEO Bob Broeksmit took part in a panel discussion entitled, “Housing Finance Reform: Will We Finally Get the Stone Up the Hill?” The panel was moderated by Eric Kaplan, Director at the Milken Institute Center for Financial Markets. Other panelists included Jeb Mason, Partner at The Cypress Group; and Lisa Rice, President and CEO of the National Fair Housing Alliance. Among the topics discussed were the various reforms needed to address the future of the secondary mortgage market.

For more information, please contact Rob Van Raaphorst at (202) 557-2799.

New York DFS Announces Merger of Enforcement and Consumer Protection Divisions; Appoints Katherine Lemire to Lead the New Group
On Monday, the New York Department of Financial Services (DFS) issued a press release announcing Katherine Lemire’s appointment as Executive Deputy Superintendent of the Department’s newly created Consumer Protection and Financial Enforcement Division. Since the departure of Richard Cordray from the CFPB, several states have announced, or are considering, the establishment of CFPB-like bodies. This week’s news follows the general contours of previous announcements in other states – these “mini-CFPBs” are being created through executive branch reorganizations that combine existing agencies with responsibility for industry oversight and consumer protection into a single entity. This approach bypasses the state legislatures, and limits industry/stakeholder opportunities to weigh in. In this case, the new DFS unit will be formed through the merger of two existing DFS units: the Enforcement and Financial Frauds division and the Consumer Protection division. According to the DFS release, combining the two divisions will give Lemire broad authority over issues ranging from student loans to Holocaust claims. MBA will continue work with the NYMBA to monitor DFS’s action to determine if this announcement represents the expansion of the Department’s existing mandates regarding lender examinations and enforcement.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

Remote Online Notarization is now Law in Iowa and Washington
This week, Iowa Governor Kim Reynolds and Washington Governor Jay Inslee signed legislation to make Iowa (SF475) and Washington (SB5641) the seventh and eighth states to enact RON in 2019. There are now 18 states that have established RON as a permissible method of performing notarizations for real estate finance transactions. Both bills follow the contours of the MBA-American Land Title Association (ALTA) model state RON bill, which is helping to establish a national consensus among state policy makers for RON laws and rules. To view the model bill, all the support materials for the MBA-ALTA campaign, and the latest RON developments, please visit MBA’s RON Resource Center at www.mba.org/RemoteOnlineNotarization.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

Sign Up for the Fourth Annual MAA Action Week
The Mortgage Action Alliance (MAA), MBA’s free grassroots lobbying network, will be holding its fourth annual Action Week May 13-17. Action Week is a national, industry-wide campaign dedicated to helping real estate finance professionals learn how to become more engaged in political advocacy.

Last year, 49 companies ran company-wide enrollment campaigns, 20 state and local associations recruited new MAA members, and 12 individuals spread the word on social media to their professional networks.

This year, our goal is to recruit 100 organizations (companies, state/local associations and individuals) to run concurrent enrollment campaigns in an effort to activate all MAA members during Action Week. Join the growing list of companies participating in MAA Action week.

Sign up and MBA Staff will provide materials and resources to help support your efforts.

For more information, please contact Alden Knowlton at (202) 557-2816.

Last Chance to Register for MBA’s Legal Issues and Regulatory Compliance Conference, May 5 – 8 in New Orleans, LA
MBA’s Legal Issues and Regulatory Compliance Conference is happening next week, May 5–8, 2019, at the Hyatt Regency in New Orleans, LA. The conference has earned a reputation for being the “must attend” annual event, tailored to mortgage compliance and legal issues. There will be over 40 sessions covering regulation, legislation, and litigation. The conference is also a great way for attorneys to satisfy their continuing education or CLE credits, including getting an Ethics credit. To register, go here.

MBA Advocacy Update - 26 April 2019

Fri, 26 Apr 2019 13:00:00 GMT

Introduction
This past week, HUD issued a Mortgagee Letter delaying plans to impose new requirements on government entities that offer down payment assistance for mortgages backed by FHA. Also, Congress continued its two-week recess as members remained in their districts for the Passover/Easter/Spring District Work Period. They will return to Washington and be back in session next week.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

Housing in America: Assessing the Infrastructure Needs of America’s Housing Stock

Click here for Upcoming MBA Conferences and Events

MBA Working For You

HUD Delays Down Payment Assistance Changes by 90 Days
On Thursday, HUD issued Mortgagee Letter 19-07, extending the effective date to July 23 for down payment assistance and operating capacity requirements included inMortgagee Letter 19-06, published on April 18. Prior to the issuance of the new Mortgagee Letter (ML), these requirements would have been effective for FHA case numbers issued on or after April 18.

The ML attempts to clarify the parameters of eligible down payment assistance (DPA) sources for FHA-insured loans. The requirements described in the ML have important implications for state/local housing finance agencies (HFAs), as well as DPA programs operated by federally recognized Indian tribes. In the ML, HUD notes that "It has come to FHA's attention that certain Governmental Entities may be acting beyond the scope of any inherent or granted governmental authority" when providing DPA. The new requirements could also potentially leave state/local HFAs susceptible to losses should they fund DPA to lenders that then choose to sell the mortgage and the servicing to another investor. In response to some of the issues raised by market participants, particularly the limits on programs operated by Indian tribes, there is pending litigation against HUD in the U.S. District Court for the District of Utah. HUD agreed to implement a 90-day stay from the date of the ML to allow governmental entities the opportunity to put systems in place to address the new requirements listed within the guidance.

MBA is in constant contact with its partners at HUD and state/local HFAs, and will continue to provide additional updates on these new requirements as they are made available.

For more information, please contact Dan Fichtler at (202) 557-2780 or Julienne Joseph at (202) 557-2782.

CFPB Intends to Adopt Changes for Civil Investigative Demands
On Tuesday, the CFPB announced its intention to adopt changes to policies governing Civil Investigative Demands (CIDs). This important policy shift is consistent with recommendations made by MBA to address concerns over the Bureau’s use of overly broad CIDs. The new policy will aim to ensure CIDs clearly describe the specific conduct under investigation as well as the provisions of law thought to have been violated. Improved CID clarity will reduce the time and expense associated with responding to CIDs, facilitating a more efficient resolution of Bureau inquires.

For more information, please contact Justin Wiseman at (202) 557-2854 or Blake Chavis at (202) 557-2930.

MISMO Remote Online Notarization Standards Nearing Completion
Recently the Mortgage Industry Standards Maintenance Organization (MISMO) RON Working Group announced that it is close to finalizing its draft model standards for remote online notarization (RON) implementation. The release of the standards is appropriately timed to coincide with the increased velocity in which states are introducing and adopting legislation that will enable the use of RON. The MISMO standards, along with the MBA-ALTA state model RON bill, are helping to establish a national consensus among state policy makers for RON laws and rules. The MISMO RON Working Group has scheduled a webinar for Thursday, May 2, at noon (ET) to provide an in-depth look at the process and the technical requirements necessary to safely implement RON.

For more information, please contact Janis Davis at (202) 557-2715 or Kobie Pruitt at (202) 557-2870.

MAA Call to Action Urges Delay in New AMC Law in NY; Assembly Banks Committee Chairman Responds with Letter to NY Department of State
This week, Mortgage Action Alliance (MAA) members in New York wrote to the State Assembly Banks Committee Chair, Kenneth Zebrowski, regarding the implementation of the Chairman’s legislation from last year to establish Dodd-Frank-required minimum standards for appraisal management companies (AMCs). The new law is scheduled to go into effect on April 27, 2019, and the New York Mortgage Bankers Association has significant concerns about the NY Department of State’s (NYDOS) extremely narrow interpretation of this law with respect to the licensing and regulation of AMCs. Specifically, NYDOS has not made a decision on the promulgation of rules that are necessary to implement the law, which is now only days away from becoming effective and enforceable. Without a delay or clear written guidance regarding enforcement, AMCs and lenders must immediately stop using unlicensed individuals for non-appraiser services such as broker price opinions, property condition reports and more. Responding to industry concerns, Chairman Zebrowski wrote to NY Secretary of State Rossana Rosado and cited potential disruption to the real estate market, and requested NYDOS issue a memo stating that it will exercise enforcement discretion for a period of 90 days.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

Register for MBA’s Legal Issues and Regulatory Compliance Conference, May 5 – 8 in New Orleans, LA
MBA’s Legal Issues and Regulatory Compliance Conference is fast approaching, taking place May 5 – 8, 2019, at the Hyatt Regency in New Orleans, LA. The conference has earned a reputation for being the “must attend” annual event, tailored to mortgage compliance and legal issues. There will be over 40 sessions covering regulation, legislation, and litigation. The conference is also a great way for attorneys to satisfy their continuing education or CLE credits, including getting an Ethics credit. To register, go here.

MBA Advocacy Update - 19 April 2019

Fri, 19 Apr 2019 13:00:00 GMT

Introduction
This week, Congress continued its two-week recess as members remained in their districts for the Passover/Easter/Spring District Work Period. CFPB Director Kathy Kraninger gave a speech detailing her approach to the Bureau, and FHA issued guidance clarifying eligibility for downpayment assistance sources.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

No relevant hearings yet scheduled.

Click here for Upcoming MBA Conferences and Events

MBA Working For You

CFPB Director Kathy Kraninger Lays Out Vision for the CFPB
CFPB Director Kraninger outlined her vision for the Bureau in a speech at the Bipartisan Policy Center touching on her views on the appropriate use of the Bureau’s regulatory, supervisory, and enforcement powers. A consistent theme was the need to emphasize the prevention of consumer harm before it occurs through education, regulatory clarity and use of the supervisory process. Of particular note was her announcement of a Fair Debt Collection Practices Act (FDCPA) rule in the near future that would place bright line limits on collection calls and provide clarity on the appropriate usage of new technology. Director Kraninger stated her belief that the need to prospectively address issues of consumer harm will spur CFPB to clearly define how to measure prevention of such harm. It is her hope that success will lead to fewer public enforcement actions.

This speech was a welcome development and signaled a focus on several issues that are important to MBA and our members. Her emphasis on clear, bright line rules and commitment to understanding regulatory burden are crucial components of our CFPB 2.0 Road Map that lays out how the Bureau should continue its evolution into a stable, neutral, and vigorous consumer regulator. This is a vision that Director Kraninger specifically endorsed in the Q&A following her speech.

For more information, please contact Justin Wiseman at (202) 557-2854.

FHA Issues Guidance on Eligible Downpayment Assistance Sources
On Thursday, HUD issued Mortgagee Letter 19-06, which clarifies the parameters of eligible downpayment assistance sources for FHA-insured loans. In the letter, HUD notes that “It has come to FHA’s attention that certain Governmental Entities may be acting beyond the scope of any inherent or granted governmental authority” when providing downpayment assistance.

To address this concern, HUD will now require new types of documentation from lenders to ensure that government entities are acting in their governmental capacities when providing funds to borrowers. Notably, the letter also appears to limit downpayment assistance by federally recognized Indian Tribes to properties located on Tribal land or to borrowers who are enrolled members of the Tribe.

This guidance is effective for all loans with FHA case numbers assigned on or after April 18.

For more information, please contact Dan Fichtler at (202) 557-2780, Julienne Josephat (202) 557-2782, or Andrea Oh at (202) 557-2922.

FHFA Names Adolfo Marzol as Principal Deputy Director
Shortly after Mark Calabria was sworn in as FHFA Director earlier this week, the Agency announced that Adolfo Marzol has been appointed to the position of Principal Deputy Director. Marzol, a respected industry veteran, has held senior leadership positions at Essent, Fannie Mae, Chase Mortgage, Equitable Mortgage, and HUD. In his role at FHFA, Marzol will report directly to Calabria and advise on a wide range of policy issues.

The appointment of Marzol comes as FHFA not only undertakes a leadership change, but also as the Agency works to finalize the rollout of the Uniform Mortgage-Backed Security and make further progress on an updated capital framework for Fannie Mae and Freddie Mac. MBA looks forward to ongoing work with Calabria, Marzol, and the rest of the FHFA leadership team as these initiatives advance.

For more information, please contact Dan Fichtler at (202) 557-2780.

MBA Comments on Proposed Maryland Lender Regulations
This week, MBA submitted a comment letter to the Maryland Department of Labor, Licensing, and Regulation (DLLR) in response to its proposed changes to regulations that govern mortgage lending activities in the state. Published in the Maryland Registeron March 1, 2019, the proposal touches on multiple aspects of the mortgage business – origination, servicing, legal compliance, and technology policy. In addition, the recent proposal reflects an update to proposed regulatory changes that were previously offered in 2017. MBA and a variety of other stakeholders provided comment on the previous proposal and some of the concerns that were raised in those comments are addressed by DLLR’s most recent version of the proposal. MBA will continue to work with DLLR going forward and advocate for greater consistency in its proposed rules.

For more information, please contact Kobie Pruitt at (202) 557-2870.

Momentum for Remote Online Notarization Continues in Multiple States; MBA and NYMBA Reach out to the New York Legislature to Discuss RON
At the end of last week, Arizona Governor Doug Ducey signed SB 1030 into law, making Arizona the sixth state in 2019 to enact RON. There are now 16 states that have established RON as a permissible method of performing notarizations for real estate finance transactions. In addition, the Maryland General Assembly (SB 678) and the Washington State Legislature (SB 5641) passed their own RON laws, which are now being prepared for signature by their respective governors. Both bills follow the contours of the MBA-American Land Title Association (ALTA) model state RON bill, which is helping to establish a national consensus among state policy makers for RON laws and rules.

Recently, MBA also collaborated with the New York Mortgage Bankers Association (NYMBA), ALTA, and the New York State Land Title Association (NYSLTA) on a letter to the sponsors of New York RON Legislation (A4076/S4352) that does not comport with the developing consensus on how to safely implement RON. In the letter, the groups suggested that the sponsors review the MBA-ALTA state RON bill and consider adopting the language of the model. To view the model bill, all the support materials for the MBA-ALTA campaign, and the latest RON developments, please visit MBA’s RON Resource Center at www.mba.org/RemoteOnlineNotarization.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

MBA Education Webinar on Basics of Private-Label RMBS
Join MBA Education on April 25 as subject matter experts present an introduction to private-label residential mortgage-backed securities (RMBS). This webinar will begin with a history of RMBS, including pre- and post-crises RMBS issuances. It will also cover basic RMBS structures and the related documentation and agreements. The roles of typical parties to those agreements, and the role of mortgage bankers in particular, will also be analyzed. Finally, select legal considerations, such as the requirements of Regulation AB and the enforcement of representations and warranties relating to the mortgage loans, will be discussed with a focus on how those issues apply to mortgage bankers. To register for the webinar, please click here.

For more information, please contact Lisa Volb at LVolb@mba.org or 202-557-2919.

MBA Advocacy Update - 12 April 2019

Fri, 12 Apr 2019 13:00:00 GMT

Introduction
This past week, Treasury Secretary Steven Mnuchin testified before both the full House Financial Services Committee and the House Appropriations Subcommittee on Financial Services and General Government regarding a broad slate of economic items and the Treasury Department's FY 2020 budget request, respectively. In the Senate, Cheryl Stanton was confirmed as Administrator of the Labor Department's Wage and Hour Division. Congress will now leave for its traditional two-week Passover/Easter/Spring recess.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

No relevant hearings yet scheduled.

Click here for Upcoming MBA Conferences and Events

MBA Working For You

Bicameral Progress on IRS Modernization
On Tuesday, the full House of Representatives passed H.R. 1957, the Taxpayer First Act of 2019, by voice vote. H.R. 1957 and its Senate companion, S. 928, introduced by Senators Charles Grassley (R-IA) and Ron Wyden (D-OR), is the first legislative reform to the Internal Revenue Service (IRS) in nearly two decades. Among the many provisions, the bill includes language to automate the 4506T tax transcript process. MBA submitted a letter supporting the validation of income as an important component of sound residential mortgage lending. The Senate Finance Committee held a hearing on modernization and reform issues on Wednesday with IRS Commissioner Charles Rettig. In addition to discussing general IRS reform, Chairman Grassley used this opportunity to discuss the importance of H.R.1957/S. 928, and said it is his hope that the Senate will take action on this bill quickly. Debate around the bill’s provision that codifies the IRS’s “Free File” system will determine how quickly it moves through the Senate.

For more information, please contact Tallman Johnson at (202) 557-2866 or Bill Killmer at (202) 557-2736.

HFSC Subcommittee Discusses Community Reinvestment Act
On Tuesday, the House Financial Services Committee (HFSC) held a hearing in the Subcommittee on Consumer Protection and Financial Institutions entitled, “The Community Reinvestment Act (CRA): Assessing the Law’s Impact on Discrimination and Redlining.” The witnesses included advocacy groups, academics and a reporter. During the hearing, Subcommittee Chairman Greg Meeks (D-NY) advocated for the elimination of “loopholes” in CRA, specifically in three areas: (1) instances where CRA credit is provided on loans in low- and moderate-income (LMI) assessment areas even when those loans are not to LMI borrowers; (2) the application of CRA when a bank has a deposit-taking branch in an assessment area; and, importantly, (3) in cases when CRA does not yet apply to non-bank lenders. Republicans such as HFSC Ranking Member Patrick McHenry (R-NC) and Subcommittee Ranking Member Blaine Luetkemeyer (R-MO) advocated for CRA modernization that reflects new financial-service delivery methods. MBA will carefully monitor this dialogue as it progresses to ensure that effective CRA reform for banks moves forward, and that CRA burdens are not extended to non-depository institutions.

For more information, please contact Dan Grattan at (202) 557-2712 or Bill Killmer at (202) 557-2736.

Secretary Steven Mnuchin Testifies in House Financial Services
On Tuesday, the House Financial Services Committee (HFSC) heard from Treasury Secretary Steven Mnuchin at a sometimes spirited hearing entitled, “Annual Testimony of the Secretary of the Treasury on the State of the International Financial System”. During the hearing’s period reserved for questions and answers, Mnuchin faced a broad range of inquiries, including a focus on both the role of the Financial Stability Oversight Council (FSOC) and implementation of Financial Accounting Standards Board's (FASB) Current Expected Capital Loss (CECL) accounting standard. Some committee members expressed concerns that CECL could have “drastic pro-cyclical” repercussions on the GSEs and credit unions. Rep. Blaine Luetkemeyer (R-MO) asked whether Treasury would support a delay of implementation in order to conduct a quantitative impact study. Sec. Mnuchin replied that FSOC is discussing CECL and that he hopes Treasury can work together with Congress on GSE reform on a bipartisan basis.

For more information, please contact Dan Grattan at (202) 557-2712 or Bill Killmer at (202) 557-2736.

OMB Asserts Authority Over Regulatory Actions by the Fed, FHFA and Other Independent Agencies
Yesterday the Office of Management and Budget (OMB), an agency in the Executive Office of the President, released a memo instructing the independent government agencies such as CFPB, FHFA, the Fed and others on the need to provide for Congressional review under the Congressional Review Act (CRA) of almost all of their actions—notice and comment rulemakings, interpretative rules or statements of policy and guidance. (There are some defined limited exceptions, such as for Fed monetary policy decisions.) Most significantly, the memo instructs these agencies to get a determination from OMB if a particular action is a “major” rule as defined by the CRA before taking any action to implement it. This requirement could significantly delay independent agency action while these OMB reviews are occurring. It is also a clear shift from past practice, where these agencies did not have their actions subject to oversight by other parts of the Executive branch.

For more information, please contact Justin Wiseman at (202) 557-2854.

Senate Confirms Cheryl Stanton to Head DOL’s Wage and Hour Division
On Wednesday, the U.S. Senate voted to confirm Cheryl Stanton to lead the Labor Department’s Wage and Hour Division, which is tasked with enforcing federal labor laws such as overtime and prevailing wage requirements. The Senate voted along party lines, 53-45, to confirm Ms. Stanton. President Donald Trump first nominated Stanton for the position in September 2017, but the Senate did not take action to confirm her in the 115th Congress. MBA sent a letter of support for Stanton on February 2, 2018.

For more information, please contact Tallman Johnson at (202) 557-2866 or Bill Killmer at (202) 557-2736.

MBA Submits Comments on Agencies’ Community Bank Leverage Ratio (CBLR) Proposal
On Monday, MBA submitted comments on the proposed CBLR framework issued by the OCC, Fed and FDIC (agencies) in February. The proposal, which was congressionally mandated, provides guidance to taxpayers on implementation of Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Actof 2018. Section 201 established a simple alternative methodology to measure capital adequacy for eligible community banks, providing significant regulatory relief. The agencies’ proposal provides eligibility factors and other required guidance for community banks that want to opt in to the new simplified regulatory capital rules. MBA appreciated the agencies’ efforts to provide clear and useful guidance, but strongly opposes both the inclusion of a 25% MSA threshold as an eligibility factor, and the proposed 9% CBLR level as the acceptable level under the framework. These requirements would disqualify many small community banks for which the simplified framework is actually intended. MBA recommended that the agencies increase the MSA threshold to a minimum of 50%, and reduce the acceptable CBLR level to 8%. This would allow more community banks, especially the smallest banks in rural areas, to qualify for this simplified regulatory capital framework.

For more information, please contact Fran Mordi at (202) 557-2860.

Important Advocacy Victory in Maryland -- Harmful Licensing Law Defeated
In another victory for coordinated and sustained industry advocacy, legislation (SB 485/HB 593) introduced at the request of the Maryland Attorney General to amend the state’s Collection Agency Licensing Act (MCALA) to require statutory trusts to become licensed debt collection agencies was ultimately defeated when the Maryland legislature adjourned on Monday of this week. The legislation would have reversed the well-reasoned decision of the Maryland Court of Appeals in Blackstone v. Sharma, 461 Md. 87 (2018), where the court held that statutory trusts created for the purpose purchasing and holding mortgage backed securities did not require licensure. A coalition led by MBA and the Maryland Mortgage Bankers and Brokers Association ensured the defeat of what could have been a harmful, first-in-the-nation licensing bill that would have increased servicing costs without any substantive new protections or benefits for consumers. The advocacy effort included testimony in the Senate andHouse of Delegates, in-person meetings with legislators on key committees, as well as several Mortgage Action Alliance (MAA) Calls to Action.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

Remote Online Notarization Campaign Continues: Maryland Legislature Passes RON Bill
This week, following the unanimous approval by the Maryland Senate, the state’s House approved SB 678 to permit remote online notarizations (RON) in the state. If signed by Governor Hogan, Maryland will join five other states – Utah, Kentucky, North Dakota, South Dakota and Idaho – that have enacted RON laws in the past month, with progress observed in several other states. SB 678 follows the contours of the MBA-American Land Title Association (ALTA) model state RON bill which, with the help of MISMO’s draft model RON implementation standards, is helping establish a national consensus among state policy makers for RON laws and rules. To view the model bill, all support materials for the MBA-ALTA campaign and the latest RON developments, please visit the MBA’s RON Resource Center.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

MBA Advocacy Update - 05 April 2019

Fri, 05 Apr 2019 13:00:00 GMT

Introduction
MBA’s National Advocacy Conference took place in Washington this week, giving attendees a chance to petition their elected officials and hear from a large cast of speakers, including a bipartisan mix of key congressional leaders on financial services and housing issues – and HUD Secretary Ben Carson. Yesterday the full U.S. Senate confirmed Mark Calabria to be the next Director of the Federal Housing Finance Agency (FHFA). And earlier this week, the House Financial Services Committee (HFSC) held hearings on a range of topics including affordable housing and the Fair Housing Act.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

Apr 9 House Financial Services Committee: The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System
Apr 10 House Financial Services Committee: Holding Megabanks Accountable: A Review of Global Systemically Important Banks 10 years after the Financial Crisis

Click here for Upcoming MBA Conferences and Events

MBA Working For You

MBA Hosts Successful National Advocacy Conference
Over 400 industry advocates from over 40 states attended MBA’s annual NationalAdvocacy Conference (NAC) earlier this week. The conference program included a slate of congressional and administration speakers including HUD Secretary Ben Carson, Senate Banking Committee member Doug Jones (D-AL), key HFSC member and subcommittee chair Greg Meeks (D-NY), “Problem Solvers” Caucus members Rep. Josh Gottheimer (D-NJ) and Rep. Steve Watkins (R-KS), and Fox News Anchor Chris Wallace – in addition to a memorable reception with elected officials in the Great Hall at the Library of Congress.

On Wednesday, 300 attendees participated in 272 official constituent meetings with their senators and representatives on Capitol Hill. The NAC Hill Day once again included a tailored Commercial/Multifamily track. Our CREF members heard directly from speakers including key Senate Banking Committee and Senate Finance Committee member Tim Scott (R-SC), HFSC member Brad Sherman (D-CA), along with key staff from the office of House Speaker Nancy Pelosi (D-CA), the Senate Banking Committee, Senate Appropriations Committee, and the Senate Health, Education, Labor, and Pensions (HELP) Committee.

For more information please contact Bill Killmer at (202) 557-2746 or Alden Knowlton at (202) 557-2816.

Senate Confirms Calabria to Lead the FHFA
Yesterday the Senate confirmed Mark Calabria to serve as Director of the Federal Housing Finance Agency (FHFA). MBA President and CEO Bob Broeksmit released astatement congratulating the Director and vowing to work with FHFA to resolve the future of Fannie Mae and Freddie Mac. As expected, the vote tally was 52-44, falling along party lines. Earlier this week, MBA joined other industry trade groups in a letter urging the Senate to approve Calabria's nomination. This followed a previous letterMBA sent to the Senate Banking Committee urging the Committee to support Calabria’s nomination.

For more information, please contact Erin Barry at (202) 557-2913 or Tallman Johnson at (202) 557-2866.

Legislation Introduced to Address 'Orphaned' VA Loans
Last week, a bipartisan group of congressmen led by David Scott (D-GA), Lee Zeldin (R-NY), Mike Levin (D-CA), and Andy Barr (R-KY) introduced the Protect Affordable Mortgages for Veterans Act of 2019 (H.R. 1988), which preserves critical protections for veterans by allowing previously “orphaned” VA Home Program refinance loans to be pooled in the Ginnie Mae secondary market (while also maintaining strong refinancing reforms enacted into law last May). H.R. 1988 is very substantially similar to legislation passed by voice vote last September in the House of Representatives during the 115thCongress.

Section 309 of last year’s regulatory reform law (previously known as S. 2155, now Public Law 115-174) sought to address the problem of loan churning targeted at service members and veterans. This section instituted new requirements that refinanced loans must meet to be eligible for the VA guaranty and for Ginnie Mae pooling. A gap between the timing dictated in S. 2155 and the implementation of the new rules left approximately 2,500 VA-guaranteed loans ineligible for pooling. These “orphaned loans” are barred from the secondary market, creating a strain on liquidity for the institutions involved. H.R. 1988 would provide a technical fix to correct this gap, maintain liquidity in the VA Home Loan market and ensure continued access to affordable VA mortgages. MBA submitted a letter of support for H.R. 1988 this week as well. Efforts remain underway with Senate offices to have a parallel measure introduced and advanced.

For more information, please contact Dan Grattan at (202) 557-2712 or Bill Killmer at (202) 557-2736.

FHFA Directs GSEs to Disburse Affordable Housing Funds
Earlier this week, FHFA announced that it authorized Fannie Mae and Freddie Mac to release over $376 million to the Housing Trust Fund operated by HUD and the Capital Magnet Fund operated by the Treasury Department.

Legislation passed in 2008 requires the GSEs to set aside an amount equal to 4.2 basis points of the unpaid principal balance of their new business for these affordable housing funds. FHFA suspended these payments shortly thereafter due to the poor financial condition of the GSEs, though it lifted this suspension in 2014.

MBA has long advocated for continued funding of these affordable housing initiatives as a critical step toward improved borrower access to credit, a reasonable requirement of GSEs with public charters, and a necessary component of any practical GSE reform effort.

For more information, please contact Dan Fichtler at (202) 557-2780.

House Financial Services Committee Focuses on the Fair Housing Act
On Tuesday, the House Financial Services Committee (HFSC) held a hearing on the state of fair housing and housing-related discrimination in America. The Committee heard testimony from representatives from the National Fair Housing Alliance, Greater New Orleans Fair Housing Action Center, the National LGBTQ Task Force, Zillow Group, and the Mercatus Center at George Mason University. During Q&A, Chairwoman Rep. Maxine Waters (D-CA) focused her questions on lawsuits involving Facebook and technology-based discrimination in the housing market, while Rep. Ann Wagner (R-MO) discussed HUD’s need for impactful tools and resources to enforce the Fair Housing Act and misuses of Community Development Block Grants.

Four pieces of legislation were announced in conjunction with the hearing including theRestoring Fair Housing Protections Eliminated by HUD Act of 2018, the Equality Act of 2019, the Housing Fairness Act of 2019, and the Sexual Harassment Awareness and Prevention Act of 2018. The committee memorandum with summaries of the legislation can be found here.

For more information, please contact Dan Grattan at (202) 557-2712 or Bill Killmer at (202) 557-2736.

Legislation Approved to Combat Illegal Robocalls Heads to Full Senate
On Wednesday, the full Senate Commerce Committee approved S. 151, the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act, by voice vote. Introduced by Senators John Thune (R-SD) and Ed Markey (D-MA), this bipartisan bill would amend the Telephone Consumer Protection Act (TCPA) by requiring voice service providers to establish a call-authentication network to combat spoofing and significantly increase the penalties that the FCC can charge for violations of the statute. Senator Thune offered a substitute amendment for the measure during the committee markup, and Senator Jerry Moran (R-KS) further amended the bill by providing for a TCPA annual enforcement report. Both amendments were accepted by voice vote. The bill now moves to the Senate floor for consideration.

For more information, please contact Tallman Johnson at (202) 557-2866 or Bill Killmer at (202) 557-2736.

FASB Rejects Recommendation to Tweak CECL
On Wednesday, the Financial Accounting Standards Board (FASB) voted to reject a recommendation by a coalition of midsized banks to tweak some sections of CECL that would help eliminate confusion for auditors, investors, and the banks. FASB stated that the recommendation would force institutions and auditors to make complex judgments or decisions about whether loans qualified for a 12-month forecast. FASB also concluded that stakeholders had ample opportunity to raise these issues prior to finalization of CECL. While this conclusion essentially makes it clear that FASB is not open to making any complex tweaks to CECL before the 2020 implementation date, the Board did not mention whether it was considering delaying implementation, or whether it would consider any other tweaks that are not deemed to be too complex to be incorporated at this time. A recording of the meeting is available on FASB’s website.

For more information, please contact Fran Mordi at (202) 557-2860.

Regulators Issue Additional FAQs and Answers on CECL
On Wednesday, the same day that FASB rejected recommendations from a coalition of midsized banks to tweak some aspects of CECL, the OCC, FDIC, Fed Reserve, and NCUA (the regulators) released a set of FAQs and answers on CECL implementation. The document updates answers to previously issued questions in response to recent developments. The questions and answers address a broad range of issues, including how CECL changes existing U.S. GAAP, which includes replacing the existing incurred loss methodology with CECL; stress test modeling and scenarios; internal control considerations related to data; and the continued relevance of concepts, processes, and practices in existing supervisory guidance on the allowance for loan and lease losses. It also provides updates on the recent amendment of CECL effective date for nonpublic business entities.

For more information, please contact Fran Mordi at (202) 557-2860.

MBANow Discusses MLO Temporary Authority; Conference of State Bank Supervisors to Address Implementation at MBA Legal Issues Conference
In an MBANow video interview released this week, MBA staff discuss the implementation of MLO Temporary Authority, and the steps companies should be taking to prepare ahead of November 24, 2019, when the new law becomes operational. Specifically, state-licensed companies should be building expanded tracking systems to monitor new licensing activity by their MLOs and anticipating new operational contingencies that may be necessary under the new federal law. Many of these potential challenges are discussed in frequently asked questions released by state regulators on the NMLS.org website, and as a starting point all MLOs and state-licensed companies should review them. MBA will also host the staff from the Conference of State Bank Supervisors (CSBS) at the upcoming MBA Legal Issues and Regulatory Compliance Conference in a dedicated session to review how implementation will work on the NMLS system. Lastly, MBA Education will also be holding webinars with CSBS that will be announced soon.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

Remote Online Notarization Progress Continues In States as Arizona Legislature Sends Bill to Governor
This week, following the unanimous approval by the Arizona Senate in February, the state’s House gave SB-1030 its unanimous approval. If signed by Governor Doug Ducey, the bill would authorize remote online notarization (RON) in the state. This early April action follows a month in which five states – Utah, Kentucky, North Dakota, South Dakota, and Idaho – enacted RON laws. If approved in Arizona, there will be 16 states that have established RON as a permissible method of performing notarizations for real estate finance transactions. SB-1030 follows the contours of the MBA-American Land Title Association (ALTA) model state RON bill, which, with the help of MISMO’s draft model RON implementation standards, is helping establish a national consensus among state policy makers for RON laws and rules. To view the model bill, all support materials for the MBA-ALTA campaign, and the latest RON developments, please visit MBA’s RON Resource Center.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

MBA Education Webinar on UMBS Readiness
Join MBA Education on April 10 for a look at UMBS readiness and the critical information your staff needs to be aware of. This webinar will provide an overview of the driving force behind the Single Security Initiative, how the structure of the mortgage industry will (and will not) change, and what mortgage lenders, servicers and third-party providers need to know to participate in the new To-Be-Announced (TBA) marketplace. Furthermore, attendees will develop an understanding of how the UMBS impacts sellers (mortgage bankers, originators, and aggregators) as well as origination, servicing, and hedging processes. To register for this webinar, please click here.

For more information, please contact Laura Vanegas at (202) 557-2785.

MBA Advocacy Update - 29 March 2019

Fri, 29 Mar 2019 18:22:10 GMT

Introduction
On Wednesday, MBA President and CEO Bob Broeksmit testified before the Senate Banking Committee as part of the second in a pair of hearings to discuss Chairman Mike Crapo’s (R-ID) secondary mortgage market reform outline. On the same day, the Trump administration issued presidential memoranda directing the Treasury Department and HUD to develop prescribed plans for housing finance reform. And MBA's National Advocacy Conference begins next Tuesday, with speakers including a bipartisan cast of key congressional leaders, HUD Secretary Ben Carson, Fox News Anchor Chris Wallace, and MBA’s Senior Officers.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

Apr 2 House Financial Services Committee:The Fair Housing Act: Reviewing Efforts to Eliminate Discrimination and Promote Opportunity in Housing
Apr 2 House Financial Services Committee: The Affordable Housing Crisis in Rural America: Assessing the Federal Response
Apr 3 House Appropriations Committee, Subcommittee on Transportation, and Housing and Urban Development, and Related Agencies: Department of Housing and Urban Development

Click here for Upcoming MBA Conferences and Events

MBA Working For You

Senate Banking Committee Holds Two Days of Hearings on Housing Finance Reform
This past Tuesday and Wednesday, the Senate Banking Committee held hearings on Chairman Mike Crapo’s (R-ID) housing finance reform outline. MBA President and CEO Bob Broeksmit testified at the Wednesday hearing alongside other housing finance participants including the Structured Finance Industry Group; U.S. Mortgage Insurers; the National Association of Realtors; National Association of Federally Insured Credit Unions; and the Center for Responsible Lending. Both hearings featured a balanced panel of witnesses representing both industry, academia, and housing and civil rights advocates. Both hearings focused on potential areas of consensus across the majority of witnesses, in addition to topics ranging from housing affordability to a new end state utilizing a multi-guarantor model with a Ginnie Mae securities wrap to the need for small lender access to any new system. Chairman Crapo emphasized numerous times that GSE reform remains one of his top priorities, and he appeared energized by both hearings. MBA’s testimony and a summary of the hearing can be found here.

For more information, please contact Tallman Johnson at (202) 557-2866 or Bill Killmer at (202) 557-2736.

White House Requests Treasury, HUD Plans for Housing Finance Reform
On Wednesday, the White House issued presidential memoranda on the need to develop robust housing finance reform policy across multiple federal agencies. Specifically, the memo directs the Treasury Department to publish a framework of administrative and legislative options to reform the GSEs, while directing HUD to undertake similar analysis with respect to FHA and Ginnie Mae. MBA President and CEO Bob Broeksmit issued a statement applauding the memoranda.

The requirements and considerations of the memo mirror a number of MBA recommendations for housing finance reform. For the GSEs, these recommendations include: preserving access to the 30-year fixed-rate mortgage, fostering competition, maintaining equal access to the secondary market for lenders of all sizes and types, compensating taxpayers for any guarantees, limiting the size of the retained mortgage portfolios, and ensuring strong safety and soundness regulation. For FHA and Ginnie Mae, these recommendations include: improving risk management practices, modernizing operations and technology, addressing abusive practices (such as “loan churning”), and diversifying lender participation.

MBA will continue to engage with policymakers in the administration and on Capitol Hill as efforts to tackle the challenges of housing finance reform progress.

For more information, please contact Dan Fichtler at (202) 557-2780.

MBA’s National Advocacy Conference
This year’s National Advocacy Conference (NAC) will take place next week, April 2-3, at the Capital Hilton in Washington, D.C. Speakers will include HUD Secretary Ben Carson, Senate Banking Committee member Senator Doug Jones (D-AL), House Financial Services Committee member Representative Greg Meeks (D-NY), Problem Solvers Caucus Co-Chairs Representative Josh Gottheimer (D-NJ) and Representative Tom Reed (R-NY), House Ways and Means Vice Chair Terri Sewell (D-AL), and Fox News anchor Chris Wallace – in addition to a memorable reception with elected officials in the Great Hall at the Library of Congress.

NAC attendees will hear from MBA’s advocacy/policy team about key industry issues including GSE Reform, federal housing program support and the need for further regulatory clarity – in addition to hearing the “dos and don’ts” of how to address these priorities with lawmakers. The NAC program will again provide prescribed time on Tuesday for individual state delegations to meet, review strategies and rehearse talking points for the Hill meetings the following day. MBA subject matter experts will be available to answer outstanding questions about key policies and priorities. Click here to view the full schedule.

Register today to be a part of our industry's largest advocacy event of the year.

For more information, please contact Alden Knowlton at (202) 557-2816.

Ginnie Mae Issues Guidance on Seasoning Provisions for VA Refinances
This morning, Ginnie Mae issued APM 19-03 which provides additional clarity regarding seasoning provisions for VA refinances. Effective immediately, Ginnie Mae is amending the MBS Guide in accordance with this memorandum to aid Issuers in their compliance with APM 18-04 requirements published in May 2018. The new guidance includes additional definitions to illustrate the various scenarios that implicate the requirements in APM 18-04.

APM 19-03 reinforces the seasoning requirements found in the previous guidance which states that the note date of any VA-guaranteed refinance loan must be on or after the later of: a) the date that is 210 days after the date on which the first monthly payment was made on the mortgage being refinanced and b) the date on which 6 full monthly payments have been made on the mortgage being refinanced. Key takeaways from APM 19-03 include:

Transactions subject to the seasoning requirements in APM 18-04: loans refinancing mortgages without a VA guaranty and re-performing refinance loans.
Transactions not subject to the Seasoning Requirements in APM 18-04: modified loans and loans used to refinance mortgages without scheduled monthly payments.
Permanent financing construction loans may or may not be subject to the Seasoning Requirements depending on the circumstances. In cases where the permanent financing is guaranteed under VA’s Loan Guaranty Program as a “refinancing”, Ginnie Mae will require compliance with APM 18-04. If the loan is structured and guaranteed under VA’s Loan Guaranty Program as a “purchase”, then it will not be subject to the seasoning requirements of APM 18-04.

For more information, please contact Dan Fichtler at (202) 557-2780.

House Financial Services Committee Holds First Markup
Earlier this week, over the course of several days, the House Financial Services Committee (HFSC) considered a wide-ranging series of bills – including legislation focused on cannabis, the CFPB, and homelessness – as part of Chairwoman Maxine Waters’ (D-CA) initial legislative markup.

Chairwoman Waters' homelessness bill (H.R. 1856) aims to curb shelter-related problems by authorizing $13.27 billion in mandatory emergency relief/federal housing program funding over five years. The bill passed along strict party lines by a vote of 32-26. The panel also approved legislation (H.R. 1500) that would restore the powers of the Bureau’s fair lending office, reestablish a dedicated student loan office, reactivate prior agreements to promote certain interagency efforts, and make recommendations for enhanced agency staffing (and applying limits on the number of political appointees.

H.R. 1500, introduced by Waters (and co-sponsored by all HFSC Democrats), garnered no support from Republicans. Though the bill did not contain any changes to the governance or structure of the Bureau, there was significant bipartisan discussion of considering changes from a single directorate to a multi-member commission (no amendments on that topic were offered).

For more information, please contact Dan Grattan at (202) 557-2712 or Bill Killmer at (202) 557-2736.

Fannie Mae Releases Guidance on Non-Citizen Borrower Eligibility
Last week, Fannie Mae released guidance clarifying the eligibility criteria for non-citizen borrowers. Notably, the guidance addresses “lawful presence” for non-citizen borrowers — including DACA recipients. Fannie Mae considers a borrower legally present in the United States if:

he/she has a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN); AND
he/she has current, verified status, which may be documented by a valid employment authorization document (EAD) or other documentation showing immigration status is current (e.g., Green Card, work visa, etc.).

Fannie Mae emphasizes that none of this is new policy, but rather clearer guidance. MBA has consistently advocated for the government housing finance programs and the GSEs to provide clarity on the eligibility status of non-U.S. citizens, particularly with respect to individuals who fall under the DACA policy.

For more information, please contact Julienne Joseph at (202) 557-2782 or Andrea Ohat (202) 557-2922.

Idaho, Kentucky and Utah Enact Remote Online Notarization Laws as MBA’s Nationwide Campaign Gains Momentum
Late last week, Idaho Governor Brad Little signed legislation (SB 1111) to enact remote online notarization (RON) in the state, which was closely followed by similar action this week in both Kentucky (SB 114) and Utah (SB-52) by their respective governors. These states follow on the heels of North Dakota and South Dakota, which enacted RON laws earlier this month. The language of each of these new laws follows the contours of the model state RON bill from MBA and the American Land Title Association (ALTA), which can be found on the MBA Remote Online Notarization Resource Center. These five new states join Ohio, Michigan, Minnesota, Tennessee, Indiana, Virginia, Montana, Texas, Nevada, and Vermont in permitting RON. Importantly, MBA responded to a few misperceptions about the Kentucky bill once it was passed by the legislature by sending a letter to the governor urging his support. MBA applauds its member volunteers and state association partners who have been instrumental in this nationwide advocacy campaign.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

MBA Education Webinar on UMBS Readiness and Best Practices
Join MBA Education and subject matter experts on April 10 for a look at UMBS readiness. This webinar will provide an overview of the driving force behind the Single Security Initiative; how the structure of the mortgage industry will (and will not) change; and what mortgage lenders, servicers, and third-party providers need to know to participate in the new To-Be-Announced (TBA) marketplace. Attendees will also develop an understanding of how the UMBS impacts sellers (mortgage bankers, originators, and aggregators) as well as origination, servicing, and your hedging processes. To register for this webinar, please click here.

For more information, please contact Lisa Volb at (202) 557-2919.

If you have difficulties reading this HTML email, please view the online version.

MBA Advocacy Update - 15 March 2019

Fri, 15 Mar 2019 13:00:00 GMT

Introduction
This week, the Trump administration released its proposed budget blueprint (which holds no force of law) for Fiscal Year 2020. In Congress, the Senate Banking Committee held an oversight hearing on the Consumer Financial Protection Bureau (CFPB) with Director Kathy Kraninger, while the House Financial Services Committee (HFSC) held a hearing on flood insurance. And MBA's National Advocacy Conference is just around the corner on April 2 and 3 in Washington, D.C., with HUD Secretary Ben Carson, senior HSFC Democrat Gregory Meeks (D-NY), key Senate Banking Committee member Doug Jones (D-AL), and Fox News Anchor Chris Wallace all slated to address attendees.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

No relevant hearings yet scheduled.

Click here for Upcoming MBA Conferences and Events

MBA Working For You

MBA Releases The Roadmap to CFPB 2.0
On Monday, MBA released a new paper, The Roadmap to CFPB 2.0, which details recommendations to ensure stability and consistent consumer protections in the Consumer Financial Protection Bureau's practices and consumer financial laws. The paper draws from the detailed responses MBA submitted to the series of 12 requests for information (RFIs) the Bureau released in 2018 seeking suggestions for how it could better align its supervisory practices and the regulations it administers with its statutory mandate and generally accepted principles of sound prudential regulation. MBA CEO Bob Broeksmit, CMB, issued a statement and published a blog post announcing theRoadmap. The Roadmap is a follow-up to MBA’s 2017 paper, CFPB 2.0: Advancing Consumer Protection.

For more information, please contact Justin Wiseman at (202) 557-2854.

Trump Administration Releases 2020 Budget Proposal
On Monday, the Trump Administration released its budget proposal for Fiscal Year 2020. The Trump blueprint includes the following key elements:

GSEs

Recommends an increase of the 10-basis point tax on g-fees to 20 basis points and would extend the tax to 2023 (currently set to expire in 2021);
Recommends suspending contributions to the Housing Trust Fund and the Capital Magnet Fund;
With respect to GSE reform efforts, “The Administration has publicly expressed its desire to work with members of Congress to facilitate a more sustainable housing finance system.”

HUD/FHA/Ginnie Mae

Requests $44.1 billion in funding for HUD, an $8.7 billion or 16.4 percent decrease from the 2019 request;
Proposes a lender fee to raise $20 million to fund FHA IT infrastructure improvements;
Requests $550 billion in new guarantee authority for Ginnie Mae;
Eliminates funding for CDBG and HOME Investment Partnership Programs.

Requests $93.1 billion in funding for VA, a $6.5 billion or 7.5 percent increase from the 2019 enacted level;
Provides $4.3 billion for technology improvements, an increase of more than $200 million.

USDA/RHS

Requests $20.8 billion in funding for USDA, a $3.6 billion or 15 percent decrease from the 2019 estimate

The annual budget proposal is a framework that does not have the force of law, and represents the first step in the much lengthier federal budget/appropriations process. Throughout the process of discussing key elements of the budget plan, MBA will work to ensure continued support for vibrant real estate markets that benefit all market participants.

For more information, please contact Pete Mills at (202) 557-2878 or Bill Killmer at (202) 557-2736.

MBA’s National Advocacy Conference
This year’s National Advocacy Conference (NAC) will take place April 2-3 at the Capital Hilton in Washington, D.C. NAC is an annual tradition that enables MBA members to speak directly to their elected officials as advocates for our industry. Speakers at NAC will include HUD Secretary Ben Carson, Senate Banking Committee Member Senator Doug Jones (D-AL), House Financial Services Committee member Rep. Greg Meeks (D-NY) and Fox News Anchor Chris Wallace – in addition to a memorable reception with elected officials in the Great Hall at the Library of Congress. Register today to be a part of our industry's largest advocacy event of the year.

For more information, please contact Alden Knowlton at (202) 557-2816.

Senate Banking Committee Receives Consumer Financial Protection Bureau Semi-Annual Report
This past Tuesday, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.” The Honorable Kathy Kraninger, Director of the CFPB, was the sole witness. A summary of the hearing can be found here.

Chairman Mike Crapo (R-ID) noted the positive steps the CFPB took recently regarding HMDA reporting requirements, and said he hoped the CFPB would identify opportunities to update the Fair Credit Reporting Act so that it works in a digital world. Senator Mark Warner (D-VA) expressed concern—and Director Kraninger agreed—that the termination of the QM Patch would be detrimental to affordable housing and said he was optimistic that the Senate would find a legislative solution. Ranking Member Sherrod Brown (D-OH) and other Committee Democrats were sharply critical of Director Kraninger and the CFPB’s efforts to eliminate the ability to repay requirement in its payday loan rule, its decision to discontinue Military Lending Act compliance examinations, and the decline in CFPB enforcement activity with regard to fair lending and student loan servicing.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barry at (202) 557-2913.

Senate Banking Committee Holds Hearing on FSOC Designations
Yesterday, the Senate Committee on Banking, Housing, and Urban Affairs held ahearing entitled, “Financial Stability Oversight Council Nonbank Designations.” Witnesses were Dr. Douglas Holtz-Eakin, American Action Forum, Mr. Paul Schott Stevens, Investment Company Institute, and Professor Jeremy Kress, University of Michigan Ross School of Business.

During the question and answer portion of the hearing, Senator Mike Rounds (R-SD) highlighted S. 603, the FSOC Improvement Act that would require FSOC to consider non-designation alternatives but would not take away from FSOC’s emergency designation process. Chairman Mike Crapo (R-ID) noted S. 603 in his statement and emphasized that FSOC’s designation process must be clear, robust and focused on addressing real underlying risks.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barryat (202) 557-2913.

House Panel Discusses National Flood Insurance Program
This past Wednesday, the House Financial Services Committee held a two-panel hearing entitled “Preparing for the Storm: Reauthorization of the National Flood Insurance Program.” The first panel featured six members of Congress while the second featured a broad array of industry participants. Before the hearing, Chairwoman Maxine Waters (D-CA) introduced a package of legislation to reform and reauthorize the long-debated insurance backstop. The package would extend the program until 2024, provide discounted premium rates for people with lower incomes, expand flood mapping, and cancel the program’s debt of more than $20 billion. While Republicans agree with the majority that the program requires significant overhaul ahead of its May 31 expiration, forgiving the program’s mounting debt was noted by GOP members as a non-starter. While both Chairwoman Waters and Republicans said they hoped to work together to tackle the issues and reauthorize the program, odds are long that legislation could be agreed upon given the time frame. Current expectations are for bipartisan discussions to continue while another short-term extension of the program is enacted close to the deadline.

A copy of the official hearing memorandum can be found here and a summary of the hearing can be found here.

For more information, please contact Dan Grattan at (202) 557-2712 or Bill Killmer at (202) 557-2736.

FHA Expands Manual Underwriting to Address “Risk Layering”
Earlier this week, FHA released a memo describing new steps to address increasing risks in its single-family portfolio. Effective for loans with case numbers assigned on or after March 18, 2019, updates to the TOTAL Mortgage Scorecard will require manual underwriting for certain loans with higher-risk characteristics.

While the memo references an earlier FHA policy requiring manual underwriting for loans with credit scores below 620 and DTI ratios above 43 percent, the new guidance does not include specific thresholds.

MBA will engage with FHA and provide further information as it becomes available.

For more information, please contact Dan Fichtler at (202) 557-2780.

MBA and State Associations Submit Testimony to Oppose Changes to Maryland Licensing Law
On Tuesday, MBA was joined by the Maryland Mortgage Bankers and Brokers Association, the Maryland Bankers Association, and the Maryland Realtors in testimonyopposing legislation (SB 485), which would revise the implementation of the Maryland Collection Agency Licensing Act (MCALA) and require statutory trusts to become licensed debt collection agencies. SB 485 and its companion in the Maryland House (HB 593) would reverse the well-reasoned decision of the Maryland Court of Appeals in Blackstone v. Sharma, 461 Md. 87 (2018) where the court held that statutory trusts created for the purpose purchasing and holding mortgage backed securities did not require licensure. Moreover, the legislation would not address perceived servicing issues that were described by the proponents of the legislation in the House and Senate Committee hearings and would negatively affect the ability to originate, sell, hold and enforce mortgages in the state. MBA staff recently met with the offices of Senator Brian Feldman (Vice Chair of Senate Finance) and Representative Dereck Davis (Chair of House Economic Matters) to discuss the risk to lending in Maryland and the potential harm to consumers by requiring statutory trusts to be licensed.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

Flawed New Mexico Remote Online Notarization Bill Withdrawn; Law Enacted in North Dakota and Progress Being Made in Other States
Following a second industry coalition letter and a Mortgage Action Alliance Call to Action opposing well-intentioned but flawed remote online notarization (RON) legislation (HB-470) in New Mexico, the bill was withdrawn by its sponsor ahead of the legislature’s anticipated adjournment this week. Coalition partners – MBA, the New Mexico Mortgage Lenders Association, the American Land Title Association, and the New Mexico Land Title Association – gave assurances that they would help develop a bill for 2020 that would better conform to the emerging national consensus regarding RON and that would embrace the industry’s core RON principles including: the need for robust provisions for ID proofing and credential analysis; that acknowledgements performed online can be readily identified and distinguished from those done in person; that technology requirements should not be so specific as to favor one vendor over another; and that legislation should conform to other legal standards and laws. The MBA-ALTA RON principles have been embraced in adopted and proposed legislation in several states, including North Dakota, which this week enacted HB-1110 to authorize RON. Bills continue to progress in several others states including South Dakota and Utah, where bills are awaiting gubernatorial consideration.

For more information, please visit MBA’s RON resource page or contact William Kooperat (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

Compliance Essentials Webinar on Social Media and Digital Advertising Regulations
Join MBA on March 20 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. Social media is a rapidly evolving and powerful tool to generate revenue, reach new customers, and increase brand recognition. That power brings many potential pitfalls and scrutiny from regulators that impact almost everyone in your company. To register for this webinar, please click here.

For more information, please contact Lisa Volb at (202) 557-2919.

MBA led Coalition Letter to Otting on GSE Reform

Fri, 01 Mar 2019 14:00:00 GMT

Dear MBA Member:

Today, MBA led a coalition of 28 housing and real estate stakeholders in a letter to Joseph Otting, Acting Director of the Federal Housing Finance Agency (FHFA), laying out key objectives and principles that we believe FHFA should bear in mind as it considers administrative policy reforms that could impact the role Fannie Mae and Freddie Mac (the GSEs) play in the housing market.

The two key objectives we outline – preserving what works in the current system and maintaining stability in the secondary mortgage market – have been at the core of MBA’s thinking on GSE reform for more than a decade. Likewise, the principles we lay out are consistent with those developed by several task forces that MBA has convened in recent years to look at a variety of aspects related to the future of the GSEs and the secondary mortgage market.

Finally, as we make clear in the letter, the steps that FHFA may take administratively should not preclude Congressional action on housing finance reform. Only through legislative action can policymakers make the structural changes necessary to ensure long-term safety and soundness and provide the certainty necessary for private capital to establish a more reliable presence in housing finance.

If you have any questions about our letter, or MBA’s efforts around housing finance reform, please do not hesitate to contact me.

Bob Broeksmit, CMB
President and Chief Executive Officer
Mortgage Bankers Association

MBA Advocacy Update - 01 March 2019

Fri, 01 Mar 2019 14:00:00 GMT

Introduction
This week, the Senate Banking Committee voted to advance the nomination of Mark Calabria as director of the Federal Housing Finance Agency (FHFA). MBA President and CEO Bob Broeksmit released a congratulatory statement and called on the full Senate to confirm him. Also MBA and 27 other organizations sent a letter to FHFA Acting Director Joseph Otting on priorities for preserving access and affordability when undertaking administrative reforms to the GSEs. And Federal Reserve Chairman Jerome Powell addressed both the House and Senate, answering questions on both GSE reform and the Current Expected Credit Losses (CECL) accounting standard.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

Mar 7 House Committee on Financial Services - Putting Consumers First? A Semi-Annual Review of the Consumer Financial Protection Bureau
Mar 7 House Committee on Appropriations; Subcommittee on Transportation, Housing and Urban Development, and Related Agencies - Stakeholder Perspectives: Affordable Housing Production

Click here for Upcoming MBA Conferences and Events

MBA Working For You

Broad Coalition Urges Policymakers to Prioritize Market Stability in Administrative GSE Reform Efforts
Earlier today, MBA was joined by 27 organizations, representing a broad cross-section of consumer and industry organizations, in sending a letter to FHFA Acting Director Otting on priorities for preserving access and affordability when undertaking administrative reforms to Fannie Mae and Freddie Mac. Specifically, the coalition advised that GSE reform must seek to further two key objectives: 1) preserving what works in the current system, while 2) maintaining stability by avoiding unintended adverse consequences for borrowers, lenders, investors, or taxpayers.

In its letter to Otting, the coalition also noted that “comprehensive legislative reform … is ultimately necessary in order to codify structural changes that ensure safety and soundness and provide the certainty needed for private capital to establish a more reliable presence in housing finance.” MBA continues to call on Congress to institutecomprehensive reforms to address the structural problems in the GSE charters and business models that contributed to the financial crisis a decade ago.

For more information, please contact Dan Fichtler at (202) 557-2780.

Senate Banking Committee Advances Calabria as Head of FHFA
On Tuesday, the Senate Banking Committee voted to advance the nomination of Mark Calabria as director of the Federal Housing Finance Agency. The vote passed along party lines, 13 to 12. MBA President and CEO Bob Broeksmit sent a letter of supportand called on the Senate to confirm Calabria when his nomination heads to the Senate floor in the coming weeks. Also on Tuesday, the Senate panel approved nine other nominations by President Donald Trump, which included Bimal Patel to be Assistant Secretary for Financial Institutions at Treasury, Todd Harper and The Honorable Rodney Hood to be members of the National Credit Union Administration Board, Dino Falaschetti to be Director of Treasury’s Office of Financial Research, and HUD Assistant Secretary nominees Seth Appleton (Policy, Development, and Research) and Hunter Kurtz (Public and Indian Housing).

For more information, please contact Dan Grattan at (202) 557-2712 or Tallman Johnson at (202) 557-2866.

FHFA Finalizes Rule to Align GSE MBS Cash Flows Ahead of Single Security Launch
Earlier this week, FHFA finalized a rule to better align the cash flows of certain Fannie Mae and Freddie Mac single-family securities. This alignment process is being undertaken to support implementation of the Single Security Initiative.

In November, MBA submitted comments on the FHFA proposal, noting that “the development of the [Uniform MBS] and the Common Securitization Platform…will represent a vastly improved single-family secondary mortgage market infrastructure.” MBA recommendations around alignment monitoring, corrective actions in response to misalignment, and transparency in setting alignment thresholds were incorporated into the final rule.

As a reminder, issuance of the Uniform MBS is expected to begin on June 3, 2019. MBA hosted a webinar in December to help prepare members for the transition.

For more information, please contact Dan Fichtler at (202) 557-2780.

Fed Chairman Powell Addresses GSE Reform, CECL
Federal Reserve Chairman Jerome Powell addressed both the House and Senate this week and answered questions on GSE reform and Current Expected Credit Losses (CECL) accounting standard. During Powell’s hearing in the Senate, Banking Committee Chairman Mike Crapo (R-ID) noted his committee will be aggressively trying to put together a bipartisan solution to address GSE reform. Chairman Powell stated that it is one of the biggest pieces of unfinished business in the post-crisis reform era, and offered that recent proposals have the right elements to ensure that significant private capital stands in front of taxpayers. Powell pledged to work with the committee in its effort, offering the services of the Fed’s staffers with housing expertise. In the House, Financial Services Committee Ranking Member Patrick McHenry (R-NC) raised the importance of GSE reform, to which Powell suggested that it should be a priority for Congress.

Also in the House, Rep. Brad Sherman (D-CA) called CECL an “esoteric accounting theory discussion gone awry.” He asked Powell if he thinks a quantitative impact study is required to understand whether CECL implementation will limit lending, especially in economic downturns. Chairman Powell said they will implement CECL and that there was no such study required, though he said they will be watching closely thereafter and will take appropriate action if needed.

For more information, please contact Dan Grattan at (202) 557-2712 or Tallman Johnson at (202) 557-2866.

Appendix Q Legislation
This week, Senators Mark Warner (D-VA) and Mike Rounds (R-SD) reintroduced the Self-Employed Mortgage Access Act, which addresses the challenges presented in documenting the ability to repay for borrowers with non-traditional forms of income. Senator Cory Booker (D-NJ) joined as an original cosponsor. The legislation, which embodies recommendations made by MBA to the Bureau of Consumer Financial Protection, would allow the use of existing underwriting standards such as those found in the Fannie Mae and Freddie Mac Seller/Servicer Guides or the FHA, VA, and USDA Handbooks as alternatives to Appendix Q. These existing standards could be used to satisfy the requirements needed for a loan to achieve Qualified Mortgage status.

For more information, please contact Erin Barry at (202) 557-2913 or Tallman Johnsonat (202) 557-2866.

Consumer Data Privacy Hearings in the House and Senate
On Tuesday, the House Energy and Commerce Committee’s Subcommittee on Consumer Protection and Commerce held a hearing entitled, “Protecting Consumer Privacy in the Era of Big Data." The following day the Senate Commerce Committee held a hearing entitled, “Policy Principles for a Federal Data Privacy Framework in the United States.” The hearings restarted the congressional conversations and followed similar themes regarding consumer data collection and privacy. Members from both sides of the aisle in the House and Senate agreed that a federal standard is necessary. However, the Senate Commerce Committee Ranking Member, Senator Maria Cantwell (D-WA), stressed the importance of a strong federal standard that does not weaken state efforts to protect consumers. While the European Union’s General Data Protection Regulation and the California data privacy model are examples of consumer data protection standards, neither committee elevated those models as the starting point for a federal data standard. Consumer data protection requires additional monitoring given the bipartisan, bicameral interest in a federal standard.

For more information, please contact Erin Barry at (202) 557-2913 or Dan Grattan at (202) 557-2712.

House Panel on Diversity and Inclusion Holds First Hearing
On Wednesday, the newly formed Diversity and Inclusion Subcommittee of the House Financial Services Committee held a hearing entitled, “An Overview of Diversity Trends in the Financial Services Industry.” The hearing had one witness, Daniel Garcia-Diaz, Director of Financial Markets and Community Investment at the U.S. Government Accountability Office (GAO). The hearing largely discussed the findings in the GAO report: Financial Services Industry: Trends in Management Representation of Minorities and Women and Diversity Practices, 2007-2015. The report was in response to a request by Chairwoman Maxine Waters (D-CA), along with Senator Sherrod Brown (D-OH) and Congressman Al Green (D-TX). Garcia-Diaz said that research shows there is still a shortage of women and minorities in leadership roles in the financial services industry. He also highlighted that the GAO study found the banking sector had the greatest representation of minorities in overall management, whereas the insurance industry had the highest proportion of women in overall management.

For more information, please contact Bill Killmer at (202) 557-2736 or Dan Grattan at (202) 557-2712.

Industry Coalition Opposes Flawed New Mexico Remote Online Notarization Bill
This week, in a letter drafted by MBA, an industry coalition weighed in on the flaws of proposed legislation (HB-470) in New Mexico to allow remote online notarization (RON). Joining MBA on the letter were the American Land Title Association (ALTA), the New Mexico Mortgage Lenders Association, and the New Mexico Land Title Association. The letter pointed out that while well intentioned, the legislation does not adhere to the industry’s core principles for state RON laws, which include: the need for robust provisions for ID proofing and credential analysis; that acknowledgements performed online can be readily identified and distinguished from those done in person; that technology requirements should not be so specific as to favor one vendor over another; and that legislation should conform to other legal standards and laws. These principles are at the core of the MBA-ALTA model RON state law and have been embraced in the adopted laws and proposed legislation of several states. They were also embraced by the non-partisan Uniform Law Commission (ULC) in its update to the Revised Uniform Law on Notarial Acts (RULONA) to include RON, which was released earlier this year.

For more information, please visit MBA’s RON resource page or contact William Kooperat (202) 557-2737 or Kobie Pruitt at (202) 557-2870.

MBA Education Webinar on California Consumer Privacy Act Join MBA Compliance Essentials and the California Mortgage Bankers Association on March 13, 2019, as subject matter experts discuss the new California Consumer Privacy Act (CCPA) and how it will impact lenders in California. While the CCPA is scheduled to go into effect in 2020, there are a number of tasks that every company needs to start doing right now. The CCPA is about giving California residents — including employees, vendors, and even visitors to your web site — more control over data that you have collected about them. To register for this webinar, please click here

For more information, please contact Lisa Volb at (202) 557-2919.

MBA Advocacy Update - 22 February 2019

Mon, 25 Feb 2019 14:00:00 GMT

Introduction
Both the House and Senate were in recess for the traditional Presidents’ Day holiday week of in-district and state work periods. On Wednesday, the Federal Open Market Committee (FOMC) released minutes from its two-day January meeting. In the minutes, the Fed explained why it decided to be patient with monetary policy, and it also offered more clarity on its plans for balance sheet normalization.

Industry Update

Click on a headline to read more:

Upcoming Congressional Hearings

Feb. 26: Senate Committee on Banking, Housing and Urban Affairs: The Semiannual Monetary Policy Report to the Congress
Feb. 26: House Financial Services Committee: Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System
Feb. 26: House Appropriations Committee, Subcommittee on Financial Services and General Government: Leveraging Private Capital For Underserved Communities and Individuals: A Look Into Community Development Financial Institutions
Feb. 27: House Appropriations Committee: Subcommittee on Transportation, and Housing and Urban Development, and Related Agencies: Stakeholder Perspectives: Fair Housing
Feb. 27: House Financial Services Committee: Monetary Policy and the State of the Economy
Feb. 28: Senate Committee on Banking, Housing and Urban Affairs: Legislative Proposals on Capital Formation and Corporate Governance

Click here for Upcoming MBA Conferences and Events

MBA Working For You

MBA Releases White Paper on IMBs
Today, MBA released a white paper on the important role independent mortgage banks (IMBs) play in today’s market. IMBs are now the primary source of single-family mortgage credit, and particularly so for low- and moderate-income families. The paper examines recent developments driving the growth of the IMB segment and the enhanced regulatory climate in which they operate. It also suggests policy recommendations designed to make the origination and servicing of mortgages an attractive and stable market for any lender — bank or nonbank — that wants to devote investment capital to supporting sustainable homeownership.

For more information, please contact Pete Mills at (202) 557-2878.

Senate Banking Committee to Consider Calabria Nomination to Head FHFA
Next Tuesday morning, the full Senate Banking Committee will vote on the nomination of Mark Calabria, the current Chief Economist to Vice President Mike Pence, to lead the Federal Housing Finance Agency (FHFA). The committee vote comes very quickly on the heels of the panel’s hearing last week featuring Calabria, and may portend relatively swift movement of his nomination to the full Senate for a floor vote as soon as late March or early April. Also on the Committee’s Tuesday docket are votes on Bimal Patel to be Assistant Secretary for Financial Institutions at Treasury, and Todd Harper and The Honorable Rodney Hood to be members of the National Credit Union Administration Board. In addition, the Committee will consider nominees who were not confirmed in the 115th Congress, including Dino Falaschetti to be Director of Treasury’s Office of Financial Research, and HUD Assistant Secretary nominees Seth Appleton (Policy, Development, and Research) and Hunter Kurtz (Public and Indian Housing). Immediately following votes, the Committee will transition to a hearing on the Federal Reserve’s Semiannual Monetary Policy Report to Congress – with Chairman Jerome Powell as the sole witness.

For more information, please contact Tallman Johnson at (202) 557-2866 or Erin Barryat (202) 557-2913.

FHA Issues Guidance to Allow Third-Party Verification of Borrower Employment, Income, and Assets
Late last week, HUD issued Mortgagee Letter 2019-01, which details the ways in which FHA lenders can use third-party services to verify borrower employment, income, and asset information. The accompanying FHA Handbook revisions apply to Title II forward mortgages and HECM loans. This guidance is directly responsive to a request MBA made in July 2018, urging HUD to adopt substantially similar standards as those already in place at Fannie Mae, Freddie Mac, and VA. MBA staff will continue to analyze the FHA Handbook revisions in the coming days. While these revisions take effect immediately, HUD is inviting public feedback for a 30-day period (through March 17).

For more information, please contact Julienne Joseph at (202) 557-2782 or Andrea Ohat (202) 557-2922.

‘Patience’ the Theme in January FOMC Meeting
The Federal Open Market Committee on Wednesday released the minutes from its two-day January meeting. Even though the job market remains strong and inflation hovers at its 2 percent target, meeting participants stressed the need to be patient in regard to future short-term rate hikes. Citing signs of a slowing global economy, coupled with trade tensions and the stock market volatility at the end of 2018, the minutes, as expected, reiterated a data-dependent stance on any decision to raise rates. However, some participants did leave open the possibility of a rate increase later this year.

Additionally, it was revealed that most Fed officials during the meeting signaled that they were prepared to soon release an action plan on stopping the shrinking of the Fed’s $4 trillion balance sheet. It was suggested that the decrease in reserves – which started in 2017 – could end as soon as later this year.

For more information, please contact Mike Fratantoni at (202) 557-2935.

Federal Banking Regulators Publish Notice of Proposed Rulemaking on the Community Bank Leverage Ratio in the Federal Register
On February 8, 2019, the FDIC, OCC, and Federal Reserve (the “Agencies”) published a joint notice of proposed rulemaking on the community bank leverage ratio (CBLR) framework in the Federal Register. The notice contains provisions that would implement section 201 of the regulatory burden relief bill, S. 2155, which was enacted by Congress last year. Under Section 201, qualifying community banks are eligible for regulatory burden relief in the form of simplified capital leverage requirements. The notice proposes eligibility criteria, which, if met, would allow the bank to opt into the simplified regulatory capital calculation rules, and avoid the complex Basel III capital rules. MBA applauds the Agencies’ efforts to provide much-needed guidance implementing the CBLR rule, but continues to be very concerned that the eligibility factors outlined in the notice might make it difficult for many community banks to qualify for this important relief. The Agencies are soliciting comments/feedback on the notice, which will be due on or about April 8, 2019 (60 days after publication in the Federal Register). MBA is currently putting together a working group of member community banks to develop comments on the notice.

For more information or to join the working group, please contact Fran Mordi at (202) 557-2860.

MISMO Releases Proposed Standards for Remote Online Notarization
Earlier this week, MISMO^®, the mortgage industry's standards organization, announcedthat new standards for remote online notarizations (RON) have been released for a 60-day public comment period. This period opened Tuesday, February 19, and will end on Monday, April 22, 2019. Any comments received will be reviewed and dispositioned; after which the standards are expected to be elevated to Candidate Recommendation status. MBA and the American Land Title Association (ALTA) collaborated to prepare model legislation that provides the framework for any state to adopt a RON process. At the same time, the mortgage industry asked MISMO to develop standards to promote consistency across the states that passed RON legislation. MISMO's RON standards enable states to adopt consistent practices and permit lenders and other industry participants to quickly adopt new procedures to meet consumer demands for convenience and a better consumer experience. For more information about the RON legislative campaign, please visit the MBA RON Resource Center.

For more information or questions about the proposed MISMO RON standards, please visit the MISMO website or contact Rick Hill at (202) 557-2718 or Jan Davis at (202) 557-2715.

mPact Young Professional Event: Increasing the Visibility of Your Brand
mPact, MBA’s initiative to engage the next generation of young professionals in the real estate finance industry, is hosting an event at MBA’s National Mortgage Servicing Conference & Expo on February 26, 2019, at the Urban Tide restaurant starting at 6:30 p.m. This event will be led by mPact Steering Committee Leader Candace Russell, VP at Carrington Mortgage Services. Understanding the valuable role mPact members play within our industry, Russell will provide insightful perspectives on how to enhance your visibility to advance your career and make your mark within your company. Come ready to share your experiences and learn from your peers. Food and drinks will be provided.

To register for the event, please contact Krystal Thomas at (202) 557-2726.

MBA Leads Industry Coalition to Oppose Harmful Licensing Legislation in Maryland
This week, MBA, the Maryland Mortgage Bankers and Brokers Association, and the Maryland Bankers Association submitted testimony to the Maryland House Economic Matters Committee for a hearing on HB-593/SB-485. The groups opposed these companion bills, which were introduced at the request of the Maryland Attorney General. The legislation would require statutory trusts to become licensed debt-collection agencies prior to the initiation of a foreclosure action. The proposed law would reverse the well-reasoned decision last year of the Maryland Court of Appeals inBlackstone v. Sharma, 461 Md. 87. The testimony points out that the bills do not offer any additional consumer protections beyond already robust federal and state servicing laws and rules, and that this requirement would make Maryland the only state in the country that requires trusts to obtain a license to foreclose on a loan that the trust itself owns. Moreover, Maryland would be requiring investors to obtain a license for legal entities that in many cases do not have any individual associated with the trust. The letter made clear that if enacted, this requirement would increase the costs of mortgage credit to Maryland borrowers. MBA and its industry partners will continue to work together to oppose this harmful legislation in the remaining weeks of the state’s legislative session.

For more information, please contact William Kooper at (202) 557-2737 or Kobie Pruittat (202) 557-2870.

MAA Issues Call to Action to Support Important Bill to Stop Regulatory Overreach in Arkansas
Partnering with the Arkansas MBA and the National Association of Home Builders (NAHB), MAA this week issued a Call to Action to support SB-170, which would block unnecessary local regulations in the state that relate to residential building designs. These regulations would mandate design standards on residential construction that have no effect on consumer health or safety, and they are estimated to increase Arkansas housing costs by an estimated $10,000 to $20,000, according to NAHB. SB-170 has already passed the Arkansas Senate, and thanks to the testimony and support of the Arkansas MBA and Arkansas MAA members, the bill is now on its way to the House floor for consideration.

For more information, please contact William Kooper at (202) 557-2737 or Alden Knowlton at (202) 557-2816.

MBA Education Webinar on California Consumer Privacy Act
Join MBA Compliance Essentials and the California Mortgage Bankers Association on March 13, 2019, as subject matter experts discuss the new California Consumer Privacy Act (CCPA) and how it will impact lenders in California. While the CCPA is scheduled to go into effect in 2020, there are a number of tasks that every company needs to start doing right now. The CCPA is about giving California residents — including employees, vendors, and even visitors to your web site — more control over data that you have collected about them. To register for this webinar, please click here.

For more information, please contact Lisa Volb at (202) 557-2919.

MBA Education webinar on: ‘What the heck do I do now?’
Join MBA Education on February 27, 2019, for a look at the state of mortgage lending in 2019 and what you can do to make this year profitable while still positioning your company for the future. With margins way down and seemingly going even lower, and with many companies already cutting expenses, it may seem like you’re out of options. This webinar will focus on the issues that matter, the necessary trade-offs, which tactics seem to be working in the industry and which ones aren't, and some of the strategic choices you may never have considered. To register for this webinar, please click here.

For more information, please contact Laura Vanegas at (202) 557-2785.

TMBA Legislative Report - February 18, 2019 | Issue 4

Tue, 19 Feb 2019 17:20:40 GMT

February 18, 2019 | Issue 4

I asked a House member this week how his Session is going. He said: "It's like a rocket sitting on the launching pad. The engines are rumbling, the smoke is billowing, you can feel the ground shaking, but so far we haven't gone anywhere." That is an apt description. Bills are being filed. Legislative Council continues to churn out bill drafts. Committees are holding their organizational meetings. But per Constitutional mandate, no bills other than Governor declared emergency bills can be voted on until after March 8.

Here are this week's highlights.

The House Pensions, Investments, and Financial Services Committee had two days of organizational hearings. The first day was devoted to pensions. The second day was devoted to financial services. Invited testimony was provided by the Commissioners of Banking, Savings and Mortgage Lending, and Consumer Credit. The financial trade associations also provided testimony. On behalf of the TMBA, I gave an overview of our membership for the Committee new members; a brief state of the industry; and an overview of our legislative objectives for 2019.

Last Tuesday, Rep. Capriglione of South Lake held a stakeholder meeting on data privacy and his outline of a bill that he is drafting. He described his proposal as "California Lite." That is he is using a number of concepts from last year's California's data privacy act. He stated that there would be carve-outs consistent with Graham, Leach, Bliley, and HIPPA. In response to a question I raised, he said that he envisioned enforcement would be by civil penalties from agencies or the AG, and did not anticipate permitting private causes of action.

Bills of interest

HB 1569 (Lambert). This is the Sunset bill for the Finance Commission, Department of Banking, and Savings and Mortgage Lending. Our initial analysis is that it contains all of the Sunset Commission's recommendations for Savings and Mortgage Lending. It extends the life of SML as a free-standing agency until 2031 (the traditional 12 years). It removes the phrase "good moral character" from the Chapter 157 qualifications for a residential mortgage originator license. At first look, this might seem like a weakening of licensing standards, but it isn't really. "Good moral character" has not ever been satisfactorily defined and is one of the things that numerous administrative law judges endlessly debate. The Sunset Commission in its review of occupational licensing agencies has recommended eliminating this phrase from licensing statutes over the last several Sunset review cycles for all agencies.

SB 763 (Menendez). This bill would require that a creditor or landlord provide expanded notices relating to a default of an obligation relating to the residence of a person over 65. If a payment is more than 30 days late, the creditor or landlord would be required to also notify the person who had a durable power of attorney for the borrower or tenant before the creditor or landlord could take any other action such as foreclosure or eviction. It only takes a New York minute to identify a lot of issues with this. How is a creditor to know whether or not the borrower gave a durable power of attorney? If more than one agent is named, does notice have to go to both? How is the creditor to determine if the borrower is now over 65? Do servicing systems have to be reprogrammed to update monthly to identify whether or not a borrower who was 55 when the loan was originated is now turning 65? And what about whether or not the principal wants the agent to know about the default? There are privacy concerns here.

SB 860 (Paxton). This bill creates a regulatory "sandbox" to test "innovative" financial products (in the emerging so-called Fintech space) by permitting the Attorney General through its consumer protection division to authorize persons to offer the financial product for a limited time without the person being licensed or registered. The financial products include "innovative" products otherwise subject to Finance Code Chapter 342 (consumer installment loans); retail installment contracts; money service business products; and acting as an investment advisor. This last category has produced a bit of feather-ruffling, because Senator Paxton's husband, current Attorney General Ken Paxton, admitted in a Texas Securities Board administrative action that he acted as an unregistered investment advisor and he paid an administrative penalty. That also led to his indictment in a criminal case because acting as an unregistered investment advisor is a felony under the Texas Securities Act. The criminal case is still pending. At least as currently drafted, the bill excludes mortgage loans. This is good because if it did cover mortgage products, the bill would place Texas out of compliance with SAFE Act requirements. I see a real structural problem with granting the Attorney General this authority rather than placing this authority within the agencies that have substantive expertise over these agencies: the Finance Commission agencies (here prominently Banking and Consumer Credit) and the Texas Securities Board. As currently structured and funded, the AG's consumer protection division does not have the expertise or the infrastructure to carry out this mandate.

Texas MBA Advocacy Day - March 25 & 26

Tue, 19 Feb 2019 14:00:00 GMT

LODGING | VENUE

The Driskill Hotel (downtown)
604 Brazos St, Austin, TX 78701
P 800-233-1234

Hotel cut-off: February 27- make your reservations today.

WHO REPRESENTS ME?

There are two ways to find out who represents you:

Visit the "Who Represents Me?" website and see who represents.
Text (520) 200-2223 with your zip code and you will receive a text back with your US Senator, US Rep., State House and State Senator's phone number.

Note: Keep in mind, it's not totally accurate because some zip codes have multiple districts.

GENERAL INFORMATION

In March 2019, mortgage bankers and associated real estate finance professionals from across the state will participate in TMBA's biennial Advocacy Day. Please help us communicate the importance of our industry to Texas' economy through your support and participation in TMBA's Advocacy Day. We must ensure that the views of Texas' real estate financial industry are heard by our State Legislators as they consider issues vital to the future of Texas housing.

The event begins with a general session, briefing by John Fleming, TMBA's General Counsel, and evening reception on March 25th at the Driskill Hotel. On the morning of March 26th, participants will meet for breakfast and last minute updates. Immediately after, we will walk over to the Capitol for scheduled meetings with key members of the legislature including your Legislators. Based on the information provided on your registration form, TMBA will pre-schedule appointments with your local legislators and/or their staffers.

TMBA represents your interests to the Texas Legislature, but no one's voice carries more weight with your elected officials than your own. By sharing information and industry issues, you will increase awareness, knowledge and boost support for the Texas mortgage industry.

ACCOLADES: Scott Gillen Presented the Esteemed "Spirit of Stewart" Award

Wed, 29 Aug 2018 13:00:00 GMT

HMBA President, Scott Gillen, was presented the esteemed "Spirit of Stewart" Award for his pioneering efforts to bring eClosing to the mortgage industry. Stewart CEO, Matt Morris, presented the award.

CALL TO ACTION: Call Sunset Committee Regarding the Abolishment of the Texas Savings and Loan

Mon, 27 Aug 2018 13:00:00 GMT

You should have received an email last week addressing the new website. We have had some folks reach out to ask about the App to download. If you go to the Apple Store (or Google), please search for Wild Apricot for Business. That is the software we are using and the app is awesome. I used it to register for the remaining events of the year, encourage you to do the same.

More importantly, we have a CALL TO ACTION request from the TMBA. There is a vote set to take place on Wednesday, August 29th to consider abolishing the Texas Savings and Loan Commission. The TMBA has asked that we get volunteers to call on the members of the Sunset Committee today and tomorrow to express our opposition to abolishing the commission. There is no gain to the taxpayers, no benefit to consumers and is absolutely not good for the mortgage banking community in Texas.

While most members of the committee do not represent Houston districts, we do have Representative Senfronia Thompson here locally. If she is your representative, it is especially important her offices hears from you. Otherwise, if you can take the time over the next two days, please reach out to the Committee members today and tomorrow and express your concerns. If you have a specific relationship with any of the committee members, please reach out to them as well.

Please click HERE to review the TMBA Talking points which includes contact information and a full script for you to use for your calls. Thanks for your assistance in making this outreach!

Scott Gillen, CMB
HMBA President

CALL TO ACTION: Reauthorize the National Flood Insurance Program (NFIP)

Tue, 17 Jul 2018 13:00:00 GMT

The National Flood Insurance Program (NFIP) is set to expire on July 31, 2018. It is essential that the program is reauthorized before the deadline or sales of homes across the nation will face delays or cancellations. It is critical to apply pressure to ensure all members of Congress know that the reauthorization of the NFIP is an urgent priority for the customers and communities served by real estate finance industry professionals throughout the country.

MBA continues to advocate for legislation that provides: a long-term reauthorization of the NFIP (preferably five years); an exemption for commercial and multifamily properties from the program's mandatory purchase requirements; and, the development of a more robust private flood insurance market. It is imperative that Congress act swiftly to pass an extension and avoid a lapse in the program.

Click the button below to take action and tell your Senators/Representative to address the NFIP immediately and pass an extension to reauthorize the program before its July 31 deadline while Congress continues to work on a long-term solution.

Best regards,

Senior Vice President of Legislative and Political Affairs
Mortgage Bankers Association

PRESS RELEASE: Realtor and Real Estate Show Host Lily Jang Addresses HMBA

Mon, 16 Jul 2018 13:00:00 GMT

The Houston Mortgage Bankers Association held its July luncheon meeting on Wednesday, July 11 at Maggiano’s restaurant on Post Oak Boulevard. Speakers for the event were Lily Jang, a Realtor with Heritage Texas Properties and the host of the local real estate show, “Lily’s List,” and Ernest Campbell, a Houston mortgage banker representing the National Association of Minority Mortgage Bankers (NAMMBA).

Introduced by HMBA President Scott Gillen, Campbell urged HMBA members to support NAMMBA and increase diversity and connection within Houston’s mortgage banking community. NAMMBA has 23 chapters nationwide and focuses on financial education for minorities and women.

Featured speaker Lily Jang, a former news anchor, has combined her journalism background with a real estate career to offer a unique perspective on home marketing. Born in Vietnam, Jang grew up in the United States and earned a degree in journalism from the University of Texas. After a career as a working television journalist in several cities around the country and in Houston, she decided to enter real estate sales utilizing what she knew best to create her marketing: communication.

“I approached a Houston television channel and pitched the idea for a HGTV-style show on local real estate – and they loved the concept,” Jang said. “It’s been a very successful venture and allowed me to gain an incredible following on social media, particularly Instagram and Face Book.”

After concluding her remarks, Jang took questions from the audience. She replied to a query about what she expects from her clients’ lenders by saying, “I am accessible at any time for my clients and expect the same availability from their lenders.” Her advice on social media content for lenders and Realtors alike was, “Keep it simple, visual, and consistent – keep posting.”

PRESS RELEASE: Houston Mortgage Bankers Association Installs 2018 Leadership

Tue, 19 Jun 2018 13:00:00 GMT

The Houston Mortgage Bankers Association installed their 2018 president and board of directors in a luncheon meeting held on June 13 at Maggiano’s restaurant near the Galleria. Outgoing HMBA President Joe Thompson thanked the retiring board members and called each of them to the podium to receive a plaque. He then passed the gavel to incoming HMBA President, Scott Gillen, CMB, Sr. Vice President, Industry Relations Executive at Stewart Title.

Featured speaker Paulina McGrath, President of the Texas Mortgage Bankers Association, introduced the 2018 board beginning with officers Vice President Candy Lewis, Arch Mortgage Insurance Company; Secretary Blake Bravo, Cornerstone Home Lending; and Treasurer Brad Luo, Gregg and Valby, LLP. She then introduced board members Josh Anderson, Bancorp South; Jeff Coady, PrimeLending; Francisco Cortez, Member Home Loan; Sherry Duhon, Georgetown Mortgage; Pam Eastwold, Cornerstone Home Lending; Jeff Robinson, Republic State Mortgage; and Roy Varner, Guaranteed Rate of Houston; and associate board members Ryan Black, Black Mann and Graham, LLP; Sheree Gilbert, National Mortgage Insurance Corporation; Mariella Massa, Appraisal MC; and Ashley Wenmoh, Mortgage Guaranty Insurance Corporation. McGrath then gave an update on TMBA activities in advocacy, education, and leadership.

In his remarks, Gillen thanked Thompson for his service to HMBA and added that he can’t make great FaceBook videos like Thompson posted all year. He also thanked the outgoing board members and asked the audience to stand and give them a round of applause.

Gillen then addressed his goals for the coming year, which included implementing new software to better manage the association, the creation of a HMBA scholarship program, and increasing PAC-related fundraisers to grow HMBA’s and TMBA’s influence in Austin.

“It’s an exciting time to be in HMBA,” said Gillen. “Our business is changing to digital-based from paper, but we know that the focus still must be local. This is our association and we need to nurture future board members. Please be involved in any way that you can.”

HMBA is a non-profit organization dedicated to promoting sound business practices and integrity in origination, lending and servicing of mortgage loans through discussion forums, networking opportunities, and continued education. For more information about HMBA, visit houston-mba.com.

FBI: Public Service Announcement

Thu, 07 Jun 2018 13:00:00 GMT

PUBLIC SERVICE ANNOUNCEMENT
Alert Number : I-052518-PSA | May 25, 2018

FOREIGN CYBER ACTORS TARGET HOME AND OFFICE ROUTERS AND NETWORKED DEVICES WORLDWIDE

SUMMARY

The FBI recommends any owner of small office and home office routers power cycle (reboot) the devices. Foreign cyber actors have compromised hundreds of thousands of home and office routers and other networked devices worldwide. The actors used VPNFilter malware to target small office and home office routers. The malware is able to perform multiple functions, including possible information collection, device exploitation, and blocking network traffic.

TECHNICAL DETAILS

The size and scope of the infrastructure impacted by VPNFilter malware is significant. The malware targets routers produced by several manufacturers and network-attached storage devices by at least one manufacturer. The initial infection vector for this malware is currently unknown.

THREAT

VPNFilter is able to render small office and home office routers inoperable. The malware can potentially also collect information passing through the router. Detection and analysis of the malware's network activity is complicated by its use of encryption and misattributable networks.

DEFENSE

The FBI recommends any owner of small office and home office routers reboot the devices to temporarily disrupt the malware and aid the potential identification of infected devices. Owners are advised to consider disabling remote management settings on devices and secure with strong passwords and encryption when enabled. Network devices should be upgraded to the latest available versions of firmware.

PRESS RELEASE: Realtors and Mortgage Bankers Explore Common Ground

Mon, 19 Feb 2018 14:00:00 GMT

On Tuesday morning, February 13, the Houston Mortgage Bankers Association gathered real estate industry professionals to hear a panel of four top-producing Realtors discuss their perspectives and answer audience questions about the realtor-side of residential real estate transactions.

Mortgage bankers, realtors, title company officers, and others assembled for the breakfast event, held in the conference room of Stewart Title’s offices at 1990 Post Oak Blvd. The morning’s panelists were Karen Karapasha, Real Living Realty; Mario Negron, ReMax Pioneers; Richard Ray, John Daugherty, Realtors; and Mary Wassef, Circa Real Estate, LLG. HMBA president Joe Thompson moderated the panel.

Each of the panelists agreed that having a comfort level with the mortgage banker in their client’s transaction was a must. They underscored the importance of a lender’s responsiveness and that the seller’s agent needs to know what’s happening with the buyer’s loan (within confidentiality restraints) just as much as the buyer’s agent does. Other major points of discussion included using local lenders that are accessible and responsive, their shared lack of time to schedule lunches or coffee meetings during the work week, and the priority of lender attendance at closing to handle any last-minute loan issues.

“Reach me by showing up at closing,” said Negron. “That’s the secret sauce. I don’t have time for lunches or coffee meetings.”

“Realtors and mortgage bankers serve the same client base and share a common goal: successful closings and happy clients,” said Thompson “This was a highly constructive and collegial meeting that has encouraged us all to work together in the spirit of cooperation, coordination, and, above all, communication for the benefit of our clients."

PRESS RELEASE: Houston Mortgage Bankers Receive Confident Economic Update

Tue, 30 Jan 2018 14:00:00 GMT

The Houston Mortgage Bankers Association held its first luncheon meeting of 2018 on Wednesday, January 10 at Maggiano’s restaurant on Post Oak Boulevard. HMBA President Joe Thompson began the meeting by presenting the organization’s Lifetime Achievement Award to attorney and HMBA board member Mac Gibson. A board member for more than 20 years., Gibson is the founder and head partner of M. D. Gibson & Associates.

Featured speaker for the noon event was David Jarvis, Senior Vice President of John Burns Real Estate Consulting. Jarvis delivered a positive assessment of the Houston economy as of the end of 2017 and forecast a rising economy in the year ahead.

“Home builders in Houston had a good year and a much better December than we expected,” Jarvis noted. “For 2018, we believe that realtors will sell more homes than ever and that MLS will hit an all-time high. We expect that home builders will sell eight to nine percent more homes.”

“There’s also good news in the oil patch,” Jarvis continued. “Texas crude production is up nine percent and the rig count is up 135 percent since it hit bottom in 2016. Energy-sector lay-offs are down and the price of oil looks good. It’s going to be a good year.”

Thompson closed the meeting by reminding everyone to register for the Top Agent Panel Breakfast coming on February 13 at the Post Oak Conference Center. Visit https://www.houston-mba.com for tickets and details.

PRESS RELEASE: HMBA Honors Mortgage Industry Legends

Mon, 08 Jan 2018 14:00:00 GMT

The Houston Mortgage Bankers Association held their annual Legends Luncheon in December at Maggiano’s Little Italy. Joe Thompson, HMBA president, opened the sold-out event by introducing the past HMBA presidents in attendance and recognizing retiring board member and past HMBA president, Kitty Gugenheim, whom he said had “raised the bar of service.”

The luncheon honored the influence of women in the mortgage industry, a theme addressed by keynote speaker Paulina McGrath, President and CFO of Republic State Mortgage, VP of Texas Mortgage Bankers Association, and President of the Board of Trustees of the Women’s Fund. In her remarks, McGrath encouraged mortgage industry women to follow their passion, always do their best, give back to the community, and commit to help and mentor younger women. “I am where I am today because I love learning and have been surrounded by opportunities to learn from others,” she stated. “My leadership success stems from loving what I do, and giving back makes me the happiest.”

McGrath called on women in the audience to speak about their experiences in the industry and share advice. Among those who spoke were and Gugenheim, ‎Senior Account Manager - ‎Mortgage Guaranty Insurance Corporation and past TMBA chair; Stacy London, Regional Manager, Homeowners Financial Group; Becky McDermott, Senior Account Manager - southern Texas at Radian Guaranty and first woman president of HMBA; and Barbara Sparks, Senior VP/Director of Underwriting at Envoy Mortgage, all of whom reinforced McGrath’s belief that voluntarism and mentoring younger women strengthen the mortgage industry.

Thompson adjourned the meeting, encouraging everyone to “do everything you can to amaze people.”

CALL TO ACTION: Cast an Early Ballot for Proposition 2

Tue, 24 Oct 2017 13:00:00 GMT

Dear HMBA Supporter-

As President of the HMBA, I want to encourage you to cast an early ballot this week for Proposition 2 which can drastically improve our home equity laws in Texas. If you're not familiar, Prop 2 will accomplish the following changes if it is approved:

Remove the "once a home equity, always a home equity" statute
Reduce the 3% fee cap down to 2%, however remove title & appraisal from the calculation
Removes the ag exemption statute

Once Prop 2 is approved, more homeowners will have access to the equity in their homes and allow you to better serve your community. These opportunities come around once or twice in a generation! Do not miss out and click here to find the early voting location nearest you!

Thank you for your continued support and please spread the word on the importance of Proposition 2!

Sincerely,

Joe Thompson

President
Houston Mortgage Bankers Association

PRESS RELEASE: Focus on Fraud Awareness At Mortgage Banker Meeting

Tue, 19 Sep 2017 13:00:00 GMT

George Strong, FBI Supervisory Special Agent, and John Pearson, Assistant U. S. Attorney, addressed members of the Houston Mortgage Bankers Association at their September 13 meeting held at Maggiano’s restaurant. HMBA President Joe Thompson introduced Strong and Pearson whose presentations focused on fraud awareness for mortgage bankers, title companies and realtors.

Strong, who heads the FBI Complex Crimes Division in Houston, noted that the emergence of non-financial institution lenders has complicated mortgage fraud investigation because those lenders are not subject to the same scrutiny as traditional lenders. “SAR (Suspicious Activity Reports) are down because we don’t get as many from non-financial lenders even though they are supposed to file them just like traditional lenders,” he said. “As mortgage bankers, title company officers and realtors, you are our front line of defense for a ‘heads-up’ when something is not right.”

According to Strong, cases of mortgage fraud are down but the dollar amounts are up. Origination and reverse-occupancy fraud schemes persist, but one of the fastest-growing problems is wire transfer fraud. “The crooks hack into and take over email accounts for mortgage companies and title companies. They make one small change in the email address, no one notices, and they divert the funds from the wire transfer. Unsecured emails are a huge soft spot, and most banks and title companies really need to increase their internal controls.”

Pearson, U. S. Attorney Deputy Criminal Chief in Houston, also stressed the importance of cooperation and communication whenever something appears to be out of the ordinary. “We are a resource,” he said. “Pick up the phone and call us with questions and concerns. If you see something, say something, because you may well catch a crime in the making before we do.”

PRESS RELEASE: Mortgage Brokers Look to Digital Future

Mon, 14 Aug 2017 13:00:00 GMT

Members of the Houston Mortgage Bankers Association assembled at Maggiano’s restaurant near the Galleria on August 9 to hear an informative and future-focused message from invited speaker Dave Savage, founder of Mortgage Coach. A recognized leader in the mortgage industry for contributions to improve the professionalism and quality of advice that originators provide homeowners, Savage has more than thirty years of experience as a mortgage executive, business leader, and mobile technology pioneer.

The presentation, entitled “The Modern Mortgage Experience,” addressed the impact of mobile technology on the mortgage industry. Citing the positive “digital disruption” of mobile devices, Savage declared that mobile is the future and the Uber business model is where the mortgage business is headed.

“There’s huge investment right now in digital mortgages,” Savage said. “As local mortgage bankers, you build personal, long-time relationships, and you need to take full advantage of available technology or use what you already have to full capacity. If your customers have a mortgage app, that’s a great opportunity for you to upgrade what you do and create a better experience for you and your buyers.”

“In order to stay relevant in a digital era, together we must provide more value to our customers throughout the community with a personal connection and enhance the loan process by using the latest technology available,” said Joe Thompson, president of HMBA. “Today’s consumer appreciates efficiency and the access to information which Mortgage Coach provides.”

PRESS RELEASE: HMBA Members Hear NASA Update from Space Center CEO

Tue, 18 Jul 2017 13:00:00 GMT

NASA is identified with Houston – and vice versa. In a nod to the important contributions that NASA and Space Center Houston have made to the city since the 1960s, the Houston Mortgage Bankers Association invited William T. Harris, CEO of Space Center Houston, to be the featured speaker at their July 12 meeting at Maggiano’s Restaurant near the Galleria.

Introduced by HMBA President Joe Thompson, Harris gave an update on Space Center Houston. He announced that the Center, the city’s number-one attraction with more than 1 million visitors per year, is the first and only Smithsonian Institution affiliate outside of Washington, D.C.

“As a Smithsonian affiliate, we get to share artifacts with the foremost history and science museum in the world,” Harris said. “Space Center Houston will be the first of four stops of a new exhibit featuring the Apollo 11 command module, which will leave the Smithsonian on a national tour for the first time since 1971. It will be the only location where guests can see the space capsules for both the first and last lunar landings. “Destination Moon: The Apollo 11 Mission” exhibit will be on display Oct. 14-March 18, 2018.”

Harris also reported on the on-going restoration of Mission Control, which Harris described as the “only room in the world designed to support space exploration.” He relayed that the $5 million-dollar restoration project, “On a Mission: Restoring Historic Mission Control,” had received $3.5 million from the City of Webster, and that Space Center Houston has launched a crowdfunding effort called “The Webster Challenge: Restore Historic Mission Control” on Kickstarter.

“The Webster Challenge is a global effort inviting people to participate in the 30-day Kickstarter to raise $250,000. The City of Webster will generously match each gift dollar-for-dollar up to a $400,000 maximum,” Harris said.

Thompson closed the meeting and reminded the audience that the next meeting will be held on August 9^th and feature Dave Savage, CEO of Mortgage Coach.

PRESS RELEASE: Houston Mortgage Bankers Association Installs 2017-18 Leadership

Tue, 20 Jun 2017 13:00:00 GMT

The Houston Mortgage Bankers Association installed their 2017-2018 president and board of directors in a luncheon meeting held on June 14 at Maggiano’s restaurant near the Galleria. Outgoing HMBA President Greg Burkett thanked the retiring board members and called each of them to the podium to receive a plaque. He then passed the gavel to incoming HMBA President, Joe Thompson.

Mark Raskin, president of the Texas Mortgage Bankers Association, introduced the new board members: Vice President Scott Gillen; Treasurer Brad Luo, Secretary Sheree Gilbert; Trey Bell; Ryan Black; Blake Bravo; David Bravo; Greg Burkett; Bill Dawley; Kittie Guggenheim; Candy Lewis; Mike McFarland; and Lisa Rogers.

In his remarks, Thompson thanked Burkett and the outgoing board members. He addressed his goals for the coming year, which include increasing HMBA membership, especially with younger mortgage bankers, through the development of new membership benefits, and strengthening HMBA’s position and influence as an important industry representative in Austin.

“On the 10-year anniversary of our industry’s most serious crisis, we must invest our efforts into protecting the longevity of mortgage banking in our local community,” Thompson said. “We must foster new talent that brings integrity and professionalism along with newer ideas for the next generation of home buyers.” In closing, he thanked the board for electing him and reminded everyone to “never take the business for granted.”

PRESS RELEASE: Mortgage Bankers Hear Upbeat Economic Forecast For 2017

Sun, 29 Jan 2017 14:00:00 GMT

At their first monthly meeting for 2017, held at Maggiano’s restaurant, Houston Mortgage Bankers Association members heard an upbeat economic forecast from featured speaker Patrick Jankowski, regional economist and vice president of research for the Greater Houston Partnership.

The audience of mortgage bankers, realtors and other real estate-industry professionals listened as Jankowski likened the recent fall in oil prices to a hurricane. “The closer a business was to the eye [of the storm], such as an oil company or a supply company, the greater the negative effect,” he said. “But as we enter 2017, ‘Hurricane Oil’ is over and we are in recovery. Oil prices are double what they were in February, 2016; the rig count is up; employment is on the upturn; and the election is over and people are making investment decisions again.”

When asked how he’ll know when Houston is back to normal, Jankowski said, “I’ll know we are there when we hit $60 a barrel oil and add 60,000 new jobs per annum.”

After thanking Jankowski for his presentation, HMBA president Greg Burkett reminded members about the HMBA Top Agent Panel to be held on February 16 at the Post Oak Central Conference Center, 1990 Post Oak Blvd, #110. He also announced that February’s monthly meeting will feature Rice University Coach David Bailiff.

PRESS RELEASE: HMBA Honors Mortgage Industry Legends

Sat, 21 Jan 2017 14:00:00 GMT

The Houston Mortgage Bankers Association held their annual Legends Luncheon honoring HMBA’s past presidents at Maggiano’s Little Italy on December 14th. Greg Burkett, HMBA president, introduced the honorees to the sold-out audience of mortgage and real estate professionals.

Legends honorees were Al Alsup, Martin Atkinson, Judy Belanger, David Bravo, Gary Davis, Mike Gale, Kevin Gugenheim, Becky McDermott, Mike Minnis, Tommy Orr, Bob Savage, Elvis Stulting and Bill Dawley. Burkett asked each honoree to give their take on what membership in HMBA and their tenures as president have meant to them. All struck a common theme of pride in the organization’s growth and service to its members and the community.

HMBA Lifetime Achievement Award recipient, Calvin Mann, offered everyone a few words of advice. “Make your choice and once you’ve made it, don’t second guess yourself. It’s a mistake to compare yourself to others, always be on time and don’t disappoint.”

“Today’s attendance is the greatest we’ve ever had at a single meeting and was a great way for us to close out a really productive year for HMBA,” said Burkett. “Listening to these past presidents, I realize how hard all of them worked and continue to work to present our industry to consumers in a positive way. Every one of them has paved the way for others to succeed and we owe them many thanks.”

PRESS RELEASE: Houston Mortgage Bankers Host American Ninja Daniel Gil

Mon, 17 Oct 2016 13:00:00 GMT

Houston Mortgage Bankers Association welcomed Houstonian and star of American Ninja Warrior, Daniel Gil, as speaker for their October 11 luncheon meeting at Maggiano’s restaurant on Post Oak Boulevard near the Galleria.

Greg Burkett, HMBA president, introduced Gil to the audience of mortgage professionals as “a man of many talents: a trainer at Iron Sports Fitness in Cypress, a dancer, and an opera singer at the Kingwood Opera Company, in addition to his growing career as a two-time finalist on the popular American Ninja Warrior television competition.”

Gil described the grueling process of becoming a top American Ninja Warrior, and credited his achievements on the show’s last two seasons to his willingness to work as hard as necessary to win. Never into team sports, he turned to fitness in high school and trained himself. He entered the ministry directly after high school graduation and traveled the world on mission trips, but realized he wanted to do something else. He went to work at an American Ninja Warrior-type gym and found his calling.

A sponsored athlete and motivational speaker, Gill still finds time to lead mission trips and teaches eight classes a week for children. “I tell my students to identify their passion, take the time to steward it, and they’ll discover their opportunities.”

Burkett thanked Gil for his inspirational presentation, and ended the event with a reminder that the next HMBA meeting will be the annual Legends Luncheon on December 15 at Maggiano’s.

PRESS RELEASE: Mortgage Bankers Hold Distinguished Producers Panel Event

Tue, 04 Oct 2016 13:00:00 GMT

The Houston Mortgage Bankers Association held a Distinguished Producers Panel Discussion recently at Stewart Title on Post Oak Blvd. HMBA invited four highly-regarded top producers in the lending industry to share their experience and advice at the breakfast event with more than 100 mortgage bankers and their guests.

HMBA president Greg Burkett introduced Joe Thompson, president-elect of HMBA, who moderated the discussion with panelists Debbie Cash, VP and Branch manager at Starkey Mortgage; Chad Helmcamp, Senior Loan Officer at Legacy Mutual Mortgage; Chris Kelso, Branch Manager/Loan Officer at Fairway Independent Mortgage Corporation; and Paul Vincent, Mortgage Banker at Sente Mortgage.

Panelists offered insights on building and maintaining repeat and referral business; adjusting to changing customer demographics, particularly millennials; innovative loan and office procedures; effective community outreach activities; personal "down-time;" and the future of the mortgage industry.

"We at HMBA are reaching out to our fellow mortgage bankers, realtors, and the public to provide informative programs. This was a great panel, and the information presented was extremely helpful for everyone who attended," said Burkett. “We plan to have more such events in the near future.”

PRESS RELEASE: Mortgage Bankers Host Steve Lufburrow, President and CEO Of Goodwill Industries Of Houston

Tue, 27 Sep 2016 13:00:00 GMT

Houston Mortgage Bankers Association featured Steve Lufburrow, president and CEO of Goodwill Industries of Houston, as the speaker for their September 7th monthly luncheon meeting at Maggiano’s restaurant. HMBA president Greg Burkett introduced Lufburrow and noted that Goodwill Industries has over 100 locations across the greater Houston area and employs more than 2,000 people.

In his remarks, Lufburrow presented a brief history of Goodwill and its mission to provide education, training and job opportunities to people with disabilities and other barriers to employment, improving the lives of individuals, families and communities. Lufburrow emphasized that he has been fortunate to work with so many people that love life and the opportunities that they are given.

“Steve was very inspirational and challenged us to value everyone that we come in contact with because everyone is important,” said Burkett. “It was a privilege to have him speak to us.”

PRESS RELEASE: Former Mayoral Candidate Bill King Addresses Houston Mortgage Bankers

Sun, 21 Aug 2016 13:00:00 GMT

Bill King, former Republican candidate for mayor of Houston and a columnist for the Houston Chronicle, was the featured speaker at the August 10 luncheon meeting of the Houston Mortgage Bankers Association. King, a partner in the tax firm Linebarger Goggan Blair and Sampson, was accompanied by Alison Leland, Director of the Bonner Leaders Program at the University of Houston and an instructor of political science in the Honors College, and Brinda Penmetsa, an Honors College student majoring in finance.

King’s presentation, entitled “The City of Houston’s Deteriorating Financial Condition: Can Houston be another Detroit,” detailed his concerns about the potentially negative financial impact of maintaining the city’s employee pension plans in their current forms. According to King, the existing plans may be financially unsustainable in the future and he recommended they be converted to defined contribution and defined benefit plans. He confirmed that most of his proposed changes would require approval by the Texas Legislature.

“Bill King’s knowledge of municipal finance issues is unparalleled, and we were honored to have him address our group,” said HMBA president Greg Burkett. “His in-depth presentation definitely gave everyone in attendance food for thought on this important issue that affects all present and future Houstonians.”

HMBA upcoming events include a “Distinguished Producer Panel Discussion” to be held on September 27 at Stewart Title, 1990 Post Oak Boulevard. The next monthly luncheon meeting will be held on September 14 at Maggiano’s and will feature Steven P. Lufburrow, President and CEO of Goodwill Industries of Houston. Please visit http://www.houston-mba.com/ for more information.

PRESS RELEASE: Houston Mortgage Bankers Host Columnist Ken Hoffman

Mon, 18 Jul 2016 13:00:00 GMT

Houston Mortgage Bankers Association welcomed Houston Chronicle columnist and “Drive-thru Gourmet” Ken Hoffman as speaker for their July 13 luncheon meeting at Maggiano’s restaurant.

HMBA President Greg Burkett introduced Hoffman who regaled the audience with a hilarious, semi-serious account of bodily injuries he had received in the course of his long journalism career. His list of painful encounters included confrontations with singer Rudy Vallee, basketball great Clyde Drexler, tennis champion John McEnroe, and the owner of the famous Lombardi’s Pizza in New York City, among others. At the conclusion of Hoffman’s remarks, Burkett presented him with a check from HMBA for his favorite charity, CAP (Citizens for Animal Protection).

Burkett announced that upcoming HMBA meetings will include a presentation on the city’s finances by 2015 mayoral candidate Bill King on August 10 and a “Distinguished Producers” panel to be held in September.

PRESS RELEASE: Houston Mortgage Bankers Association Installs 2016-17 Leadership

Sun, 19 Jun 2016 13:00:00 GMT

The Houston Mortgage Bankers Association installed their 2016-2017 board of directors in a luncheon meeting held on June 8 at Maggiano’s restaurant near the Galleria. Outgoing president Bill Dawley handed the gavel to incoming president Greg Burkett who introduced his leadership team: Vice President Joe Thompson, Treasurer John Wilson, and Secretary Sheree Gilbert; and board members Trey Bell, David Bravo, Bill Dawley, Mack Gibson, Kitty Guggenheim, Candy Lewis, Mike McFarland, Lisa Rogers, and Mat Wilson.

Burkett thanked Dawley and the outgoing board for their service and noted that Dawley and several other past HMBA presidents remain as active board members. “It is an honor and a privilege to be a part of this association,” he said. “This is a board that truly loves what we do.”

In his remarks, Burkett laid out his goals for the coming year. They include increasing recognition for HMBA as the number-one representative for the mortgage industry in Houston; growing individual and corporate memberships; adding more Platinum sponsors; offering increased value to members; and adding more “lunch n’ learns” with varied topics and a distinguished producer panel. He closed by encouraging all HMBA members to support the Texas Mortgage Bankers Political Action Committee. “Our goal this year is $15,000 and I urge all of you to contribute. The PAC is the way to maintain our standards and preserve our industry.”

PRESS RELEASE: Houston Mortgage Bankers Host Texan Linebacker Whitney Mercilus

Sun, 17 Apr 2016 13:00:00 GMT

Whitney Mercilus, college All-American and star outside linebacker for the Houston Texans, joined The Houston Mortgage Bankers Association as keynote speaker for the monthly luncheon meeting at Maggiano’s restaurant on April 12. Introduced by HMBA President Bill Dawley, Mercilus gave the sold-out audience an update on the Texans and made a few predictions for the team’s success in the coming season.

“We didn’t finish like we hoped to last season but Coach O’Brien has really brought the team up,” Mercilus said. “I blame it on ‘hard knocks.’ Our defense held in there last year and now our offense has become much more efficient. We start back on April 18 and no slack will be tolerated. It’s going to be a winning season and we will bring home the championship.”

Responding to questions from the audience, Mercilus shared that his favorite thing about being a Texan was “hotel cookies” and his least favorite was “when O’Brien was not happy.” When asked about the new NFL contact rules, Mercilus replied, “Some I agree with, some I do not. As a defender trying to sack quarterbacks, it’s hard not to hit a guy in the forbidden zones.” A follow-up question about which quarterback he’d like to sack or sack again elicited a quick answer: “Tom Brady - again. And I look forward to sacking Cam Newton a few times in Super Bowl 2017.”

After his speech and Q and A, Mercilus accepted a donation from HMBA on behalf of Houston-based charity The Sunshine Kids.

“We were so thrilled when Whitney acknowledged he would be our April luncheon speaker,” said Dawley. “Once Whitney committed, and we sent out the announcement, the event was sold out weeks in advance. Houston is a huge sports town and football is still king. The HMBA would like to thank Whitney and the Houston Texans for supporting our association. And we were honored to be able to provide a donation to his favorite charity, The Sunshine Kids.”

PRESS RELEASE: Realtors and Mortgage Bankers Explore Common Ground

Sun, 21 Feb 2016 14:00:00 GMT

On Tuesday, February 16, the Houston Mortgage Bankers Association gathered real estate industry professionals to hear a panel of four top-producing Realtors discuss their perspectives and answer audience questions about the realtor-side of residential real estate transactions.

Mortgage bankers, realtors, title company officers, and others assembled for the breakfast event, held in the conference room of Stewart Title’s offices at 1990 Post Oak Blvd. The morning’s panelists were J. Carter Breed, J. Carter Breed Properties; Scott Johnston, The Lippincott Team/Gary Green Realtors; Richard Ray, John Daugherty, Realtors; and Clint Simpson, Greenwood King Properties. HMBA president-elect Joe Thompson moderated the panel.

In the course of the one-hour discussion, the panelists stressed open, two-way communication between realtor and mortgage broker as the number-one priority in a transaction. Each stressed communication by the lender with all parties, not only the buyer’s agent, as essential. All four panelists underscored that the seller’s agent needs to know what’s happening with the buyer’s loan just as much as the buyer’s agent does. Other major points included the importance of lender attendance at closing to handle any last-minute loan issues, and using local lenders that are accessible and responsive.

“Realtors and mortgage bankers serve the same client base and share a common goal: successful closings and happy clients,” said Greg Burkett, HMBA president. “This was a highly constructive and collegial meeting that has encouraged us all to work together in the spirit of cooperation, coordination, and, above all, communication for the benefit of our clients.”

Photo Credit: Houston Chronicle

PRESS RELEASE: Mortgage Bankers Host John Burns Real Estate Consulting Analyst

Sat, 20 Feb 2016 14:00:00 GMT

The Houston Mortgage Bankers Association featured real estate market analyst Matt Farris at the group’s February meeting held at Maggiano’s restaurant. Farris, an associate with John Burns Real Estate Consulting, holds a B.B.A. in Economics from Sam Houston State University and received an M.A. in Applied Economics from the University of Houston. He supports consulting services by compiling and analyzing market data, conducting field research, and creating reports for market and project feasibility studies.

In his remarks to the assembled mortgage lending and real estate professionals, Farris gave a state-of-the-market assessment of Houston’s job and housing market and offered a projection on the market’s performance in the near future.

Farris said that he sees a bright, long-term future for Houston jobs and homes. “Both national and international businesses are realizing that they need to do business here –and that will significantly increase with the completion of the expansion of the Panama Canal later this year. Urging caution in the short term, however, Farris noted that one-third of all U.S. energy-sector jobs are based in Houston. “With the downturn in the price of oil, home builders need to be cautious with how much they are building.”

“This is the time of year when we all are very interested in what the economists feel like what will happen in the short-term and near-term here in Houston, the state of Texas and at the national level,” said Bill Dawley, HMBA president. “Matt did a very good job of showing statistics and where we are today, what the trends are that we are experiencing, and how this compares to our previous down-turns in oil prices.”

PRESS RELEASE: HMBA Hosts First 2016 Lunch and Learn Seminar

Sun, 07 Feb 2016 14:00:00 GMT

As part of its continuing education program for mortgage industry and real estate professionals, Houston Mortgage Bankers Association hosted its first “Lunch and Learn” of 2016 on January 26. HMBA held the seminar in the training room of Gregg & Valby, LLP, 1700 West Loop South.

“Building a Business Plan that Works to have Your Best Year Ever” featured speaker Steve Kyles, a loan officer and coach at Legacy Mutual Mortgage. Kyles, a member of The Core Training group, coaches top real estate and mortgage lenders to be in the top one-percent of producers in the industry. He is a member of the Greater Houston Luxury Home Connection and a former HMBA board member.

“We were privileged to have Steve present his program for us”, said Bill Dawley, HMBA president. “He set out a simple but strategic plan to create tasks and strategies to help all of us accomplish our goals for 2016. I think everyone walked away with more clarity and focus on the year ahead. Steve is such a huge asset to the HMBA and to the local mortgage industry as a whole. He is passionate about providing assistance to local Houstonians so they can achieve the ‘American Dream’ and become a proud homeowner.”

PRESS RELATED: First HMBA Annual Lifetime Achievement Award Presented

Fri, 15 Jan 2016 14:00:00 GMT

At its first meeting and luncheon of the new year held on January 13 at Maggiano’s restaurant, the Houston Mortgage Bankers Association delivered a surprise: the presentation of the first HMBA Lifetime Achievement Award to long-time HMBA member Calvin C. Mann.

A founding partner of Black Mann & Graham, L. L. P, mortgage lender and real estate attorneys, Mann has more than 33 years in the document preparation business in Houston. In presenting the award, HMBA President Bill Dawley said that HMBA had long sought a means to recognize extraordinary people, such as Mann, who are part of Houston’s mortgage industry. He noted that Mann had also received the Larry E. Temple Distinguished Service Award from the Texas Mortgage Bankers Association.

Mann thanked HMBA for the honor and accepted the award “on behalf of his employees.” A longtime supporter of the TMBA PAC, he urged the audience to support the PAC with their time and money. “Nothing happens in Austin – or Washington – without money,” he quipped.

The luncheon’s featured speaker, Mike Carroll, an account manager at Mortgage Guarantee Insurance Corporation Insurance (MGIC) in San Antonio, delivered a hair-raising account of his survival in the Twin Towers on September 11, 2001. A former state golf champion at Stephen F. Austin University, Carroll went to work for Morgan Stanley in Houston immediately after graduation in 2001and was in New York to prep for his Series 7 exam. He was in the Morgan Stanley office on the 61^st floor of the second tower when the first plane hit tower one.

“I was at my desk about 8:30 a.m. when it sounded like a huge freight elevator rumbled past. Then people began saying that there was something wrong with the next tower and that’s when I saw what looked like ticker tape and smoke whirling past the windows. Our manager told us he didn’t know what was happening but to get our gear and get out.”

“That saved my life,” Carroll continued, “because the Port Authority was on the building PA system telling everyone to go back to work. I was in the stairwell when the second plane hit our building and was thrown across the stairwell into the far wall. It was the loudest noise I have ever heard but I was lucky again: my stairwell survived the attack intact.”

Carroll eventual made his way to the ground and exited the building 10 minutes before it collapsed. He closed with these thoughts: “Remember 911; make sure you have courage as it will always get you through; act in a professional manner when things are stressful; thank God every day; experience life as it can be fleeting; and tell your family you love them – every day.”

PRESS RELEASE: Mortgage Bankers Honor Past Presidents at Legends Luncheon

Sun, 27 Dec 2015 14:00:00 GMT

The Houston Mortgage Bankers Association held their Legends Luncheon honoring HMBA’s past presidents at Maggiano’s Little Italy on December 9th. Bill Dawley, current HMBA president, introduced the honorees to the audience of mortgage and real estate professionals.

Among the HMBA past presidents that were in attendance were, Mike McFarland, David Bravo, Scott Valby, Mike Gale, Gary Davis, Judy Belanger, Rob Macioce, Mike Holtcamp, Martin Atkinson, Debi Reese, Kevin Guggenheim, Ben Streusand, Mike Minnis, Becky McDermott, Clif Crabtree, Ray Marshall, Frank Gentry and Keith Brown.

Past presidents Gentry, Streusand, Guggenheim, and Davis, each representing a different time frame in the industry, shared perspectives on developments and changes they have experienced in the mortgage business during the past 30 years.

“This was a great way for us to close out a really productive year for HMBA,” Dawley said. “Listening to these past presidents and hearing what their concerns were back in the day, I realize how far we’ve progressed professionally and how hard all of them worked to present our industry to consumers in a positive way. We owe them many thanks.”

PRESS RELEASE: Mortgage Bankers Get TRID Update and Hear Former Astro Phil Garner

Mon, 19 Oct 2015 13:00:00 GMT

After much anticipation and concern, the new TRID (TILA / RESPA Integrated Disclosure Rule) documents went into use on October 3^rd. Mortgage bankers, realtors and title officers assembled for the Houston Mortgage Bankers Association monthly meeting on October 14 at Maggiano’s restaurant received an update on the forms’ progress from HMBA President Bill Dawley.

“Well, TRID is officially here!” said Dawley. “The first part of TRID - new loan applications on or after October 3^rd- is in full-speed-ahead mode. We haven't seen or heard of any broad issues with the new Loan Estimate which replaces the Good Faith Estimate and Truth In Lending. We are cautiously optimist on Part Two, the Closing Disclosure, which replaces the HUD 1 Statement. We will see a few of these in late October but the bulk of these new transactions will appear around Thanksgiving.”

Dawley then turned the podium over to the meeting’s featured speaker, former Astros infielder and manager Phil Garner. Garner, a World Champion with the Pittsburg Pirates in 1979, managed the Astros from 2004 to 2007 and led Houston to a World Series appearance in 2005. In addition to his baseball career, Garner has been in commercial real estate development in Houston since the early 1970s. He also constructs athletic fields and has oil interests.

Garner regaled the audience with tales about his playing and management days. “A manager must manage the players, the press and the owners. I dealt very well with the players. I’d do hours of pre-game interviews with the press – and I figured out that sports writers want controversy. And I was fired a lot as a manager. My owner-management skills were lacking,” he said, laughing.

Retired Astros pitcher Roger Clemons received particular praise. “I loved the guy. Rocket was a team player and a mentor for the younger players. He always went the extra mile to make everyone a better player.”

PRESS RELEASE: HAR President Bob Hale Urges Mortgage Bankers to Embrace “Innovative Disruption”

Fri, 18 Sep 2015 13:00:00 GMT

Bob Hale, President and CEO of the Houston Association of Realtors, was the featured speaker at the Houston Mortgage Bankers Association monthly meeting held at Maggiano’s Little Italy on September 9. Bill Dawley, President of HMBA and SVP Residential Lending Production, Amegy Mortgage, introduced Hale to the overflow crowd of mortgage and real estate professionals.

In a presentation entitled “Staying Relevant in a World of Disruptive Innovation,” Hale discussed the changes that consumers are demanding in traditional services, including the real estate transaction and mortgage loan processes. “It’s all about connecting consumers to what they want,” he said. “Uber and Airbnb are perfect examples. They have given consumers what they want by bypassing – and disrupting - traditional taxi and hotel services. And taxis and hotels, instead of trying to become better in order to compete, have tried to regulate them out of business – to no avail.”

“In the real estate industry, the internet-based companies are an example of innovative disrupters,” Hale continued. “They bypassed Realtors and went directly to the consumer. HAR saw early on that we needed to embrace the kind of services that they were providing such as lead generation and agent ratings, and we have done that. We are also working on giving every broker a virtual office website in order for consumers to access accurate Texas sales prices, allowing Realtors to be the source of information consumers are seeking.”

Referring to an internet company’s recent purchase of a transaction management company, Hale said, “I expect transaction management that allows consumers to view and manage every facet of their real estate sale or purchase transaction on-line in real time will be the norm very soon. Innovative disruption is changing the mortgage and real estate industries and mortgage bankers and Realtors will adapt and change with it.”

PRESS RELEASE: Mortgage Bankers Host Metrostudy Market Analyst Scott Davis

Mon, 24 Aug 2015 13:00:00 GMT

The Houston Mortgage Bankers Association held their monthly luncheon at Maggiano’s Little Italy on Wednesday, August 12. Featured speaker for the event was Scott Davis, Houston Regional Director of Metrostudy. Davis has a particular focus on millennial generation housing preferences and has authored two books on the millennial generation.

In his remarks to the assembled mortgage lending professionals, Davis gave a state-of-the-market assessment of Houston’s housing market and offered his thoughts on the market’s performance in the near future.

“The Houston metropolitan area continues to lead the nation in single family permits. We are down a bit from June 2014 but I believe that is a return to a more normal, balanced market than we’ve had in recent years,” Davis said. “In fact, recent data is showing that the overall Houston economy is stronger than indicated.”

According to Davis, inventory is still low, hovering at a three month supply of available housing on the market. “Equilibrium is a six-month supply of available housing. I see inventory remaining low well into 2016 and 2917, and that’s going to keep the market up.”

Davis also said that an anticipated mortgage rate increase would not suppress housing sales activity and might even stimulate sales.

PRESS RELEASE: Mortgage Bankers, Title Companies and Realtors Impacted by Truth In Lending Changes

Sun, 19 Jul 2015 13:00:00 GMT

Marvin Stone, Senior Vice President of Business Integration at Stewart Title, addressed members of the Houston Mortgage Bankers Association at their July 8 luncheon meeting held at Maggiano’s restaurant. Stone’s presentation focused on sweeping changes to the Truth in Lending documents mandated for 2015 by the Consumer Financial Protection Agency. Originally scheduled to take effect on August 1, the changes have been rescheduled to take effect on October 3.

According to Stone, the new TIL procedures and forms will change the mechanics of the home purchase process for lenders, title companies, realtors, and consumers. “Any change to the loan could trigger a delay of three business days and changes in fees before or at closing will necessitate a new closing statement and more significant delays.”

“The full impact of these changes is not yet completely understood,” Stone said. “I believe that 92-percent of lenders, title companies, builders and realtors are prepared but there are many operational details still to be addressed.”

Stone urged lenders and title companies to come together and work very closely to smooth the transition. “Realtors are expecting the lenders and title companies to take the lead on this,” he said. “We need to set realistic expectations with realtors on the extended time frame for closing, changes, etc. so they can educate their clients.”

“We were thrilled and honored that Marvin was able to juggle his schedule to accommodate our July monthly luncheon,” said Bill Dawley, HMBA President and SVP/Residential Lending Production at Amegy Mortgage Company. “The minute the CFPB issued their bulletin on these new changes in April of 2012, Stewart Title appointed Marvin as their CFPB Program Manager. This shows you the confidence that one of the top title agencies around has in Marvin.”

PRESS RELEASE: Changing of The Guard For Houston Mortgage Bankers Association

Fri, 12 Jun 2015 13:00:00 GMT

The Houston Mortgage Bankers Association installed their 2015-2016 board of directors in a luncheon meeting held on June 10 at Maggiano’s restaurant near the Galleria. Association president Mike McFarland passed the leadership baton to new president Bill Dawley who introduced in-coming officers Vice President Greg Burkett, Treasurer Kevin Polivka and Secretary Sheree Gilbert; past presidents McFarland, Trey Bell, and David Bravo; and directors Mack Gibson, Kittie Guggenheim, Candy Lewis, Lisa Rogers, and Joe Thompson.

Featured speaker Tom Tallent, President of the Texas Mortgage Bankers Association, thanked McFarland and the outgoing leadership for their service and praised their efforts to raise awareness about the important changes coming to Truth in Lending documents on August 1. “Most leaders of the Realtor community are now addressing the changes and working to get their offices ready.” He sounded a cautionary note as well, saying, “I don’t see that same level of awareness within the builder community and that causes me concern. The majority of purchase contracts written in July will be subject to these new regulations and everyone needs to prepare.”

Dawley thanked HMBA staff member Michelle Martin for her help and then noted the unique advantage of having three former presidents serving as directors on the in-coming board. “Their collective insight and experience makes our board exceptionally effective,” he said.

PRESS RELEASE: Real Estate Financing Changes on August 1, 2015

Wed, 03 Jun 2015 13:00:00 GMT

Major changes are in store for consumers as they deal with mortgage companies and title companies in real estate transactions beginning August 1, 2015. The Consumer Financial Protection Bureau (CFPB), created to protect and inform the consumer, has restructured the process of applying for a home loan through the closing of the loan. The Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) are becoming the TILA RESPA Integrated Disclosures (TRID).

The goal of the CFPB is to help consumers by making all forms look similar, guard against hikes in charges at closing and help consumers understand future obligations. These goals are accomplished by:

Changing and combining the Good Faith Estimate and Initial Truth in Lending forms into a new form called the Loan Estimate (LE). There are limits on the amount of variance of fees once the LE has been provided to the consumer.
Changing and combining the HUD-1 Settlement Statement and Final Truth in Lending forms into a new form called the Closing Disclosure (CD).
The LE and CD are very similar in format and information provided and can be easily compared to make sure that the fees that are disclosed at the beginning of the transaction are the same at the closing of the loan.
There are specific timeframes for the delivery of the LE and CD to allow the borrower to review the forms prior to any action on the loan. The most significant timeframe requirement is a three-day waiting period after the receipt of the CD before the closing can take place which assures the borrower adequate time to review and prepare for closing.

The new requirements contain many good measures to ensure the consumer increased time to review the documentation and provide a more easily understood process. However, the changes are not insignificant for mortgage companies and title companies to incorporate into their business processes and there are some duties and responsibilities that have been shifted between the two industries.

Initially, through August and September, mortgage and title companies will have loans closing under the pre-TRID and TRID forms which may lead to some confusion. Also, with the increased requirements for delivery of the LE and CD, homebuyers and real estate agents can expect a longer loan and closing process. The goal of the changes is to provide a better experience for the consumer purchasing a new home – which may come at the price of a slower process.

PRESS RELEASE: Mortgage Bankers Study Big Changes in Loan And Closing Documents

Tue, 21 Apr 2015 13:00:00 GMT

Recently, the Houston Mortgage Bankers Association held the second in a series of seminars designed to prepare mortgage, title and real estate professionals for sweeping changes coming to loan and closing documents (Truth in Lending Act disclosures) on August 1.

The April 14^th session, held at Stewart Title Guaranty Company, 1990 Post Oak Blvd. targeted lending industry professionals and presented an in-depth review of the new Loan Estimate and Closing Disclosure documents, the different requirements that will change the delivery time-frames for these documents, and an assessment of these changes’ impact on the entire mortgage process. Seminars developed for title company professionals and Realtors are planned for future dates to be announced.

Bill Dawley, HMBA Vice President and SVP Residential Lending Production, Amegy Mortgage Company, L.L.C., moderated a panel of leading industry experts that included Mike McFarland, current HMBA President and Senior Loan Officer, Legacy Mutual Mortgage; Brandon Collins, a real estate attorney with M.D. Gibson & Assoc., P.C.; Dawn Lewallen, Compliance Counsel, Senior Underwriter, Stewart Title Guaranty Company; and Dayna McElreath, Vice President of Operations, Sente Mortgage.

The new TILA disclosures are part of a wide-ranging overhaul of the mortgage process, according to McFarland. “We want to ease this change for everyone in our industry, including Realtors,” he said. “The good news is that while these changes are significant, they eliminate the confusion and frustration that consumers have with the present loan and closing documents. The new docs are very user-friendly - simple, succinct and clearly referenced to each other, unlike the documents we use now.”

“It’s vital that all of us – lenders, title people, and especially Realtors, understand the ramifications of these new TILA disclosures and work together to educate and guide consumers through the process. I say ‘especially Realtors’ because it’s Realtors who are on the front lines with this – they introduce buyers and sellers to the process and are in first position to prepare them for potential issues along the way. Realtors must be knowledgeable to help their customers understand the big changes in the way the contracts must be written, particularly the time frames for contract changes and closing dates. For instance, I see 45-day closings as the new normal after August 1, and that’s a huge change from the way we’re writing contracts now.”

“The key to all this is going to be knowledge and preparation,” McFarland said in closing. “That’s why we at HMBA want everyone in our industry to learn about these new disclosures.”

PRESS RELEASE: Former Astros Manager Larry Dierker Addresses Mortgage Bankers

Mon, 13 Apr 2015 13:00:00 GMT

Former Astros pitcher, manager, and major league baseball broadcaster Larry Dierker addressed the Houston Mortgage Bankers Association at the group’s monthly luncheon meeting held April 8^th at Maggiano’s restaurant near the Galleria.

Introduced by HMBA president Mike McFarland, Dierker received numerous rounds of applause as he regaled the audience with tales about his years with the Houston Colt.45s and Houston Astros, and his career as a major league baseball broadcaster. The Colt.45s signed Dierker at age 17 and he pitched from 1964 to 1977 for the Houston Colt .45s/Astros and then the St. Louis Cardinals. He managed the Astros for five years from 1997 to 2001 and was elected National League Manager of the Year in 1998. Dierker served as a color commentator on the Astros' radio and television broadcasts from 1979 to 1996 and again from 2004 to 2005.

At the conclusion of Dierker’s presentation, McFarland presented him with a contribution from HMBA to Cy Hope, a non-profit organization that works to improve the lives of economically-challenged children in the Cypress Fairbanks Independent School District.