Posts Tagged ‘federal deposit insurance corp’

Lending to Single-family Home Builders Rises in Q1 2016

June 8th, 2016 Comments off

mortgage    andyenstallblog  creditA new report by the National Association of Home Builders (NAHB) states that banks increased their lending to single-family home builders by $2.3 billion in Q1 2016, almost 18 percent higher than lending in the same period one year ago. The NAHB’s analysis of of recent Federal Deposit Insurance Corp. (FDIC) numbers indicates that as of March, residential construction loans rose to $63.2 billion, as nationalmortgagenews informs MHProNews.

NAHB Chief Economist Robert Dietz says the 18 percent increase is consistent with the trade group’s forecast of 806,000 single-family starts this year, an increase of 13 percent from 2015, adding, “Lending is still in the easing territory but the rate of that easing has been slowing in the past few quarters.” He notes that the supply of available lots remains a stumbling block for small and midsize builders.

FDIC data indicates outstanding acquisition, development and construction loans, which includes commercial building, multifamiy and single-family project loans totaled $284.2 billion as of the end of the first quarter, an increase of 14 percent over the same period last year. ##

(Image credit: andyenstallblog)

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


The Avoidance of the Rule of Law by Dodd-Frank

July 24th, 2015 Comments off

dodd_frank___bloombergbusinessweek___creditWriting in wsj, former Chairman of the Senate Banking Committee Phil Gramm, noting the effects of Dodd-Frank on the banking system, says although the Federal Reserve’s quantitative easing has increased bank reserves, lending has barely risen.

The Federal Deposit Insurance Corp. reports that 1,341 commercial banks have closed since 2010, but only two new ones have been chartered, compared to the approximately 2,500 that started in the 25 years before the Great Recession. He says community banks have hired 50 percent more compliance officers to deal with Dodd-Frank while the industry itself has only increased employment by five percent.

Before Dodd-Frank regulators were generally responsive to Congress which controlled appropriations thereby instilling a series of checks and balance within the system. Dodd-Frank, however, has given regulators the right to set rules on their own, which creates an air of uncertainty among lenders, leading to an overall pullback on lending.

While bipartisan commissions implemented rules in the past, the Consumer Financial Protection Bureau (CFPB), authorized by Dodd-Frank, is under the wing of the Federal Reserve and not in the least beholden to Congress for appropriations or any kind of regulation. It’s funding is automatic, away from the scope of elected officials. Its authority extends to banning services and products offered by financial institutions, a determination left in the the past to the Federal Trade Commission (FTC) and the courts. The rules are now whatever the regulators say they are, as MHProNews understands.

Gramm says, Most criticism of Dodd-Frank focuses on its massive regulatory burden, but its most costly and dangerous effects are the uncertainty and arbitrary power it has created by the destruction of the rule of law. This shackles economic growth but more important, it imperils our freedom.

For the relevance of former Sen. Gramm’s words to manufactured housing, please click here.##

(Image credit:bloombergbusinessweek)

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

Experienced Eyes Watching Dodd-Frank

June 8th, 2012 Comments off

A line-up of former regulators, lawmakers, and other financial policy makers headed by one-time Federal Deposit Insurance Corp. (FDIC) chairman Sheila Bair will form the Systemic Risk Council to keep tabs on the enforcement of the new regulations under Dodd-Frank. As NationalMortgageNews tells, the group was organized by the Pew Charitable Trusts and CFA Institute, an organization that sets standards for investment pros. Other council members include former Nebraska Senator Chuck Hagel, former Commodity Futures Trading Commission chair Brooksley Born and former Treasury secretary Paul O’Neill. One-time Federal Reserve Chairman Paul Volcker will be a senior adviser. Noting a major concern that reform is not moving fast enough, the group will also focus on the enforcement of regulations, transparency, and financial disclosure.

(Image credit: Benzinga)

Partisan Battle Continues to Dog Richard Cordray as Head of CFPB

December 21st, 2011 Comments off

NationalMortgageNews reports the battle over President Obama’s nomination of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB) has stymied three uncontroversial confirmations in related areas. Senate Minority Leader Mitch McConnell (R-Kent.) has put a hold on Martin Gruenberg’s nomination to head the Federal Deposit Insurance Corp. (FDIC), Thomas Curry as comptroller of the currency, and Thomas Hoenig as vice-chairman of the FDIC until President Obama agrees to not make a recess appointment of Cordray. Despite an agreement by the top Democrat and Republican on the Senate Banking Committee to approve the three nominees, Sen. McConnell and other Republican lawmakers want the CFPB to be led by a committee instead of a single individual. If President Obama makes a recess appointment of Cordray, Republicans will probably delay pending nominees.
(Graphic credit: CFPB)