Posts Tagged ‘American Bankers Association’

Calls for Housing Finance Reform Continue to Resound

July 13th, 2016 Comments off

mel watt  jacquelyn martin  associated press postedDailyBusinessNewsMHProNewsWhile many on both sides of the aisle recognize the importance of reforming the secondary housing finance system, 32 Congressional Democrats sent a letter to Federal Housing Finance Agency (FHFA) Director Mel Watt saying the government-sponsored enterprises’ (GSEs) capital base, which is set to expire in 2018, sends out a dark cloud for “underserved markets.”

Meanwhile, the Mortgage Bankers Association, National Association of Realtors, National Association of Home Builders, American Bankers Association and National Housing Conference also sent a letter to the FHFA saying Congress needs to take up the issue of housing finance reform, according to housingwire.

While Watt did not respond directly to the letters, in a letter not made public, but which The Wall Street Journal‘s Nick Timiraos revealed to MHProNews, Watt wrote, “I continue to believe that conservatorship is not a desirable end state and that Congress needs to tackle the important work of housing finance reform. In the meantime, however, you can be assured that FHFA will continue to fulfill its responsibilities to manage the conservatorships of the Enterprises in a safe and sound manner and in accordance with our statutory responsibilities.” ##

(Photo credit: Associated Press/Jacquelyn Martin–Mel Watt, FHFA Director, at his swearing in)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Dodd-Frank Act is Harming the Economy, says Donald Trump

May 18th, 2016 Comments off

Donald_trump__newsmax_mediaIn an interview with Reuters, presidential candidate Donald Trump stated financial reforms implemented under President Obama, specifically the Dodd-Frank Act, and the ensuing Consumer Financial Protection Bureau (CFPB), are stifling the economy and he would ditch most all of their provisions.

Dodd-Frank has made it impossible for bankers to function,” he said. “It makes it very hard for bankers to loan money for people to create jobs, for people with businesses to create jobs. And that has to stop.”

In about two weeks he will release a plan for overhauling Dodd-Frank, which would be tantamount to dismantling of the legislation, prompting Democratic frontrunner Hillary Clinton to say that is a “reckless idea” which would “leave middle-class families out to dry.”

Dodd-Frank was passed in the aftermath of the Great Recession to make banks less vulnerable in times of crisis, but it also had the unintended consequence of making it more difficult for consumers to purchase manufactured homes, something the CFPB’s Director Richard Cordray could change with the stroke of a pen, as MHProNews understands.

Congressional Republicans have tried to ease the burden of the new regulations on small and medium-sized banks, and have called for the replacement of the sole CFPB director with a commission, as well as bringing the agency under Congressional oversight. Some have said the CFPB needs to be shelved altogether.

Banks and other lenders have spent six years and millions of dollars in attempting to comply with the law, according to newsmax.

John Hall, of the American Bankers Association (ABA), said, “Every law can be improved, and Dodd-Frank is no exception. Sometimes there are drafting errors. Sometimes a good idea in theory turns out to be unworkable after a closer look in the light of day.”

Representative Jeb Hensarling (R-TX), the chairman of the House Financial Services Committee, who has endorsed Mr. Trump, intends to release his own financial reform package in several weeks.

However, Dennis Kelleher of Better Markets said Trump’s plan would be “a slap in the face to the American people who have suffered so much from the 2008 crash.”

While Trump has not discussed specifics of his plan, he suggested that financial institutions should separate commercial banking activities from investment banking.

He did praise Fed Chair Janet Yellen for keeping interest rates low, but when her term expires he would replace her with a Republican.

For more information on an MH related topic, click here. ##

(Photo credit: newsmax–presidential candidate Donald Trump)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

TRID Rule Continues to Hamper Mortgage Lending Industry

March 3rd, 2016 Comments off

mortgage  housingwire creditAccording to a survey by the American Bankers Association (ABA), the Truth-in-Lending/Real Estate Settlement Procedures Act integrated disclosures (TRID) that took effect Oct. 3, 2015, continues to leave a trail of vendor software problems, longer processing times, and closing delays that average eight days, although some have taken as long as 20 days.

According to what nationalmortgagenews tells MHProNews, many lenders are still waiting for updates on their loan origination systems, said Robert Davis, a senior vice president of the ABA. “As we anticipated, our bankers are struggling to comply in part because the systems being provided by vendors are incomplete or inaccurate,” Davis said in a statement. “The causes of many of these systems problems are ambiguities in the TRID rule that require resolution.” In the survey of 548 banks, more than three-fourths are still awaiting updates to their loan origination systems (LOS).

Lenders had requested the Consumer Financial Protection Bureau (CFPB) delay implementation a second time beyond Oct. 3, but the agency declined. Now, Davis said the CFPB needs to resolve some of the issues and questions lenders have in order to smooth out the LOS delivery problems.

The ABA discovered many banks quit making construction loans, home equity loans and adjustable-rate mortgages because of a lack of “adequate compliance direction.##

(Image credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Expanding Portfolio Loans could help Consumers Purchase Homes

June 12th, 2015 Comments off

home buying   firstbanktrust  creditIn a blog from thehill, former Oklahoma Governor Frank Keating, now president and CEO of the American Bankers Association, noting June is American Housing Month, says he hears from bankers across the country who tell him regulations are standing in the way of homeownership.

He says nearly two-thirds of Americans own their homes, and according to he Federal Reserve, 81 percent of renters would like to join them. Unfortunately, half of them do not have the down payment, and nearly a third do not think they would qualify for a mortgage.

Keating recounts hearing of a young father in Montana who was denied a $16,000 loan to buy a manufactured home. He had a well-paying job, but he had not been working long enough to document his income that would satisfy rules set by the Consumer Financial Protection Bureau.

In another instance, a doctor, who had just acquired a private medical practice and thus became self-employed, could not be qualified to buy a home because his profile did not fit the mortgage rules.

If banks can hold these kinds of loans in their own portfolios instead of selling them on the secondary market, they would take the risk after making sure the loans were properly underwritten.

He says, “One reasonable reform that would help customers get a step up in housing would be to provide portfolio mortgages with the legal protections of “Qualified Mortgage” status. Banks are willing to take on the credit risks of these loans—but the legal risks imposed by excessive regulation and penalties for lending outside of the QM box are what prevent bankers them from making them.

A financial reform bill introduced by Sen. Richard Shelby (R-Ala.) will expand portfolio lending, and would resolve situations like the two mentioned above, as MHProNews understands. ##

(Image credit: firstbanktrust)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

American Banker’s Association analysis of the 2014 MidTerm Elections

November 6th, 2014 Comments off

american-bankers-association-aba-logo-posted-daily-business-news-mhpronews-com-The American Banker’s Association (ABA) has released their analysis of the 2014 mid-term elections. MHProNews has obtained their statement. Quoting,After countless television and radio spots, endless debates and campaign expenditures of nearly $3.7 billion, the control of the U.S. Senate is now in the hands of Republicans and, as expected, Republicans exceeded their margin of control in the U.S. House of Representatives.”

As is the case with all informed Americans, bankers remain concerned with the difficult issues our country faces on the tax policy, health care and the budget deficit. More directly, bankers are concerned that four years after the passage of the Dodd-Frank Act, banks of all sizes are feeling the strain of regulation weighing the industry down and harming their ability to serve their customers.”

The seriousness of the concerns of the ABA and other groups reminds manufactured housing professionals that our industry is far from alone in feeling the negative impact of the CFPB and other regulatory over-reaches at the federal level. Quoting again from the ABA release,The results of this election could have a significant impact on the ability of our country to address issues before they grow beyond repair.

The entire ABA post-election report is available at the link here. ##

Related story on GreenbergTraurig (GT) post election report, linked here.

(Image credit: ABA logo)

Will Housing Finance Reform Please come Forward? Or Not

January 10th, 2014 Comments off

Housing finance reform is expected to be at the top of the agenda in Congress at the beginning of the new session, but unless the initiatives move forward quickly, chances increase they will stall as the mid-term elections approach in November. The bi-partisan proposal introduced in the Senate will pare down Fannie Mae and Freddie Mac and establish a government backstop, according to This measure may form the backbone for legislation that is finally introduced by the Senate Banking Committee, but the question remains if it will take precedent over immigration reform, the budget and tax reform. Additionally, as James Ballantine of the American Bankers Association (ABA) says, when will the Obama administration weigh in on the measure. He says, “Once you start getting a sense that that type of legislation has momentum, it may attract some barnacles that you won’t be able to take off and that could be to the detriment of the legislation.”

Meanwhile in the House, a more conservative plan, the Protecting American Taxpayers and Homeowners (PATH) Act, did pass out of the banking panel but stalled before it got to the House floor. Some analysts say its failure to reach the floor reflects a division in the Republican caucus on a bill that is very unpopular with the housing industry. However, as MHProNews has learned, if the Senate begins moving its bill forward, the House may respond by moving the PATH Act to the fore, and pass it in order to maintain negotiating power with the Senate’s version of housing finance reform.

(Image credit: Fotosearch–question mark houses)

ABA Blasts CFPB for blanket requests for sensitive information

August 29th, 2013 Comments off

american-bankes-association-logo-posted-daily-business-news-manufactured-housing-pro-news-The American Bankers Association (ABA) blasted the Consumer Financial Protection Bureau for a system they say lacks transparency in data collected from consumers. Law360 tells MHProNews that the CFPB also fails to sate how it plans to use the data to shape their policies. This comes on the heals of Senate Republicans concerns about the CFPB’s data gathering. The ABA alleged the CFPB’s request for a “generic clearance” new surveys of potentially sensitive consumer information. ##

(Image credit: ABA Logo)

Overall Delinquency Rates Decline

April 21st, 2012 Comments off

NationalMortgageNews tells the American Bankers Association (ABA) reports delinquency rates fell across all the loan categories the ABA monitors in the fourth quarter of 2011, the first time that has happened since 2004. The ABA defines delinquency as being late 30 or more days. The report notes consumers made fewer late payments on personal loans, direct and indirect car loans, manufactured housing, property improvement, marine and RV loans. Home equity loans also fell, but only from 4.12 percent to 4.08 percent in the Q3 2011. However, says ABA Chief Economist James Chessen, “Troublesome performance in housing-related loans is keeping overall delinquency rates elevated. The housing sector continues its painful adjustment, and it will take a long time before delinquency rates return to normal.”

(Photo credit: (Fotosearch stock photography)

New Home Sales Fall in December; Economists See Growth in 2012

January 26th, 2012 Comments off

NationalMortgageNews tells the U.S. Census Bureau reports new home purchases last year totaled 303,000, declining 6.5 percent in 2011, the lowest number since the 1960’s. Sales of newly-built homes fell to a seasonally adjusted rate (SAAR) of 307,000 from 314,000 in November, a 2.2 percent slide after rising three consecutive months. The Economic Advisory Committee of the American Bankers Association, while noting a full housing recovery is still distant, predicts new home sales will increase ten percent in 2012, and should reach a SAAR of 350,000 by the fourth quarter 2012. The median sales price for a new home fell 2.5 percent in December to $210,500. Builders had 61,000 homes on the market in December 2011, representing a six months supply.

(Photo credit: Wikipedia)

Bankers: Government Should Exit Finance Market

February 9th, 2011 Comments off
In a letter to Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan dated February 9, American Bankers Association (ABA)’s President and CEO Frank Keating suggests the government’s primary role be limited to ensuring stability in the event of market failure, and it should gradually exit the primary housing finance market all together, and help reestablish private markets without destabilizing the Federal Home Loan Banks. The ABA says the guarantee fees (G fees) paid to the Government Sponsored Enterprises (GSE) should be raised to help offset losses incurred by Fannie Mae and Freddie Mac, and to enable the private market to better compete with the GSEs. The letter suggests the mortgage finance end result should be a mix of 10 percent FHA and VA loans, 30 percent private business operated with a government backstop, and 60 percent with no government guarantees. In addition to strong regulation for whatever form a future GSE might take, the steps to achieve these goals need to be taken cautiously, given the fragile state of the current housing market.