Category Archives: Mortgage & Real Estate

Sen. Warren on the fate of the CPFB

Interestingly enough, this week marks the seven-year anniversary of when Sen. Elizabeth Warren, D-Mass., called Consumer Financial Bureau Protection Director Richard Cordray to come to Washington D.C. and run the newly created agency.

And it’s this same week that Cordray announced that he will step down from the position before the end of the month.

Warren weighed in on the discussion of Cordray leaving the bureau on MSNBC’s The Rachel Maddow Show on Wednesday.

Warren has an extra stake in the bureau since in many ways the CFPB was her brainchild.

In September 2010, the Obama administration appointed Warren to serve as the architect of the bureau.

Warren, who was then a Harvard Law professor and is now a U.S. Senator, was a top candidate to lead the CFPB, but the role of director eventually went to former Ohio Attorney General Richard Cordray.

Warren left the CFPB shortly after it officially opened for business on July 21, 2011.

During the news segment, Maddow asked Warren, “What are your hopes for the fate of that agency now that President Trump will be appointing its leader?”

“This is a real test for Donald Trump, and in the financial area, it is the biggest one so far. He ran saying over and over and over that he was going to be there for the little guy,” Warren responded.  

“They need a director who has a proven track record in both the ability to stand up to Wall Street and the commitment to try and level the playing field for hard-working families,” said Warren. “This agency was built to work for the American people, and it does work for the American people. It needs a director that is committed to that, and right now, that’s up to Donald Trump. Make it happen.”

Watch the full video here

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Mortgage delinquencies arise following a 3 hurricanes

The 3 vital hurricanes that caused so many extinction during Aug and Sep was mostly obliged for a third-quarter boost in debt delinquencies.

The seasonally practiced evasion rate of 4.88% was 64 basement points aloft than a second quarter, according to a Mortgage Bankers Association’s National Delinquency Survey. The 30-day evasion rate was obliged for 50 basement points of that increase, pronounced Marina Walsh, a MBA’s clamp boss of attention analysis, in a press release.

Compared with one year ago, delinquencies were 36 basement points higher.

“Hurricanes Harvey, Irma and Maria caused disruptions and dump in countless states,” Walsh said. “Florida, Texas, adjacent states, as good as ravaged Puerto Rico, saw estimable increases in their past-due rates. While patience is in place for many borrowers influenced by these storms, a consult asks servicers to news these loans as derelict if the remuneration was not made formed on a strange terms of a debt regardless of any patience skeleton in place.”

Mortgage delinquencies arise

Federal Housing Administration-insured mortgages had a 146-basis-point boost in their evasion rate from a second quarter, to 9.4%. This was a largest quarter-to-quarter boost in a MBA survey’s history, Walsh said.

There was a 52-basis-point boost in Veterans Affairs debt delinquencies to 4.24%, while a required loan evasion rate rose 50 basement points to 3.97%.

“While a storms played a vicious cause in explaining a arise in a altogether evasion rate, there are other factors to consider, generally given evasion rate increases in other states not directly impacted by a storms,” she said.

“First, there were timing issues compared with a final day of a month being a Saturday. Processing for debt payments done over a weekend did not start until Monday, Oct. 2 and so these debt payments were identified as 30-days derelict per NDS definitions.”

Plus, evasion rates were during ancestral lows in a second quarter. The FHA evasion rate was during a lowest indicate in 21 years, while for a VA, late payments were during a turn not seen given 1979.

“Foreclosure starts were down 1 basement indicate from a prior quarter,” Walsh said. “In destiny surveys, we might see a proxy dump in foreclosure starts in hurricane-impacted states due to storm-related foreclosure moratoria, as was seen during Hurricane Katrina in 2005.

“It will expected take about 3 or 4 some-more buliding for a effects of a many new hurricanes on a consult formula to dissipate.”


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Senate Finance Committee just passed its own, major tax overhaul

After a week of marking up its tax reform plan, the Senate Finance Committee passed the bill, sending it to the full Senate to vote on.

“From the outset of this process, we sought to craft a strong pro-growth, pro-jobs, pro-family tax overhaul that will move America forward and modernize our nation’s tax system to meet the challenges and opportunities of today,” Senate Finance Committee Chairman Orrin Hatch, R-Utah, said. “After months of hard work and nearly a week of robust deliberation on the merits of this legislation, the Senate Finance Committee acted tonight to advance the most comprehensive tax reform bill in a generation. This is a historic moment and one we should all be proud of.”

The Senate’s bill will keep the current mortgage interest deduction cap at $1 million, however has drawn fire from the housing industry for doubling the standard deduction, which some housing experts say could make the mortgage interest deduction less attractive.

This is a change for the House tax reform bill, which would slash the MID in half to just $500,000. The House passed its tax reform bill Thursday, sending it to the Senate.

“Though NAHB believes the Senate tax legislation is better for the housing sector, like the House, it fails to provide a meaningful incentive for homeownership for the middle class,” said Granger MacDonald, National Association of Home Builders chairman.

“We will continue to work with Congress on tax policy and other areas to ensure that housing and homeownership remain a national priority,” MacDonald said. “Enacting meaningful tax reform that will help the middle class and small businesses is vital to keep the housing market moving forward and to create job and economic growth.”

Now, the Senate committee passed its own version of tax reform, and plans on moving to a full Senate vote after the Thanksgiving Holiday.

“By nearly doubling the standard deduction, lowering tax rates, and doubling the child tax credit, we have made good on our promise to deliver a bill that will improve the lives of average Americans who have been hit by nearly a decade of sluggish economic growth,” Hatch said. “Bringing our outdated tax structure into the 21st century will help level the playing field for businesses – both small and large – and ensure we can keep more jobs and more investment here at home.”

President Donald Trump congratulated the House on passing its tax reform bill, telling the Senate he would like to see the bill on his desk by the end of the year. However, there has been no word yet on from the Senate on if its plans to vote on the House’s bill.

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