News

Mnuchin Zeal for Fannie-Freddie Overhaul Faces Test After Ruling - ABI

U.S. Treasury Secretary Steven Mnuchin’s seriousness about overhauling the nation’s $10 trillion mortgage market will soon be tested, Bloomberg News reported today. A federal appeals court on Tuesday dealt a major blow to hedge funds that own Fannie Mae and Freddie Mac shares, ruling that investors weren’t entitled to billions of dollars of profits. The decision clears an obstacle to addressing an issue that has vexed policy makers for almost a decade: What to do with the government-controlled companies that guarantee 43 percent of U.S. mortgages. Yet some housing industry groups and analysts say that they’re skeptical anything will happen quickly because Republican lawmakers have bigger priorities, such as repealing Obamacare and overhauling the tax code. And while most everyone agrees something must be done about Fannie and Freddie, there isn’t much consensus over how to proceed. Read more.


Appeals Court to Review Constitutionality of CFPB’s Structure - ABI

A federal appellate court announced Thursday that it would review a decision finding that the structure of the Consumer Financial Protection Bureau is unconstitutional, temporarily undoing an earlier decision that said the president is allowed to fire the agency's director at will, the Washington Examiner reported yesterday. The U.S. Court of Appeals for District of Columbia Circuit said that the full court would rehear the case, PHH Corporation, et al v. CFPB, which has major implications for the future of consumer financial regulation under the administration of President Trump.  In October, a three-judge panel had ruled that the bureau's single-director set-up was unconstitutional. Oral hearings before the full court are set for May 24.


Consumer Agency Can Demand Answers about Foreclosed Homes, Judge Rules - ABI

Judge Nancy G. Edmunds of Federal District Court in Detroit has ruled that one of the nation’s largest providers of seller-financed homes must comply with a demand for documents and other information from the Consumer Financial Protection Bureau (CFPB), the New York Times reported today. The CFPB has been looking into whether the terms of some of these sales violated federal truth-in-lending laws. The agency filed a lawsuit in November after one such provider, Harbour Portfolio Advisors of Dallas, refused to comply with an administrative subpoena. Harbour Portfolio had argued that the agency had no authority to investigate its sale of formerly foreclosed homes to poor people through high-interest installment payment contracts — often referred to as contracts for deed.


U.S. Household Debts Climbed in 2016 by Most in a Decade

Steven Mnuchin, President-elect Donald Trump’s pick for treasury secretary, said yesterday that he supports the Volcker Rule, but suggested that he wants to make some changes to the Dodd-Frank regulatory framework, MorningConsult.com reported. During his confirmation hearing before the Senate Finance Committee, Mnuchin said in response to a question from Sen. Mike Crapo (R-Idaho) that while he supports the Volcker Rule — a product of the 2010 Dodd-Frank law that restricts banks from placing risky bets with their own capital — he wants to examine its effects on market liquidity. “I think the concept of proprietary trading does not belong in banks with FDIC insurance,” Mnuchin said, referring to the Federal Deposit Insurance Corp. He added that the Volcker Rule’s impact on liquidity is “something I would absolutely want to look at,” and he cited a recent Federal Reserve report examining the issue.


Yellen Open to Dodd-Frank Changes for Community Banks - ABI

Yellen told members of the Senate Banking Committee that Congress could exempt small institutions from some regulations in the 2010 Dodd-Frank Act, and she pointed to the Volcker Rule ban on proprietary trading and restrictions on incentive-based compensation as areas that are ripe for changes. She also said that the Fed has already taken steps to address regulatory complaints, such as making the bank examination process easier for small banks. However, she said “all firms” should be required to follow capital standards, including community banks. The Fed is not subject to a recent executive order that requires regulators to rescind two regulations for each new rule, Yellen noted. The central bank’s leader indicated that easing regulations in line with the executive order’s goal will remain appropriate.


GOP Senators Unveil Bill to Give Congress Control of CFPB Budget

The total amount of debt held by American households climbed in 2016 by the most in a decade, driven by broad and steady increases in credit card debt, auto and student loans, and a fourth-quarter surge to the highest amount of mortgage originations since before the financial crisis, the Wall Street Journal reported today. Total household debt climbed by $226 billion in the final three months of 2016, according to a report yesterday from the Federal Reserve Bank of New York. Total household debts are now just $99 billion shy of the all-time peak of $12.7 trillion set in the third quarter of 2008 just as the banking system began crashing down. The New York Fed estimates that debt is highly likely to set a new record in 2017. The New York Fed doesn’t adjust its figures for inflation. When measured against the broader economy, total household borrowing today is 67 percent of nominal gross domestic product, compared with about 85 percent in 2008.


Buckley Madole, P.C. Exhibiting in Booth #601 At MBA’s National Mortgage Servicing Conference

Buckley Madole, P.C. will be exhibiting in booth #601 at the Mortgage Bankers Association National Mortgage Servicing Conference being held at the Gaylord Texan Dallas Texas 2/14/17 through 2/17/17.   Several of Buckley Madole, P.C.’s Shareholders, including Adam Womack and Rich Haber will also be at the exhibit booth during the below listed times.

 

                                                                                                                                 

                                                                Rich Haber                                                                                                           Adam Womack

                                             Rich.Haber@BuckleyMadole.com                                                                    Adam.Womack@BuckleyMadole.com

                                                 Shareholder (NY, NJ Offices)                                                                            Shareholder (TX, FL, GA Offices)

                                    At Booth #601 on Wednesday 2/15/17 from                                                         At Booth #601 on Thursday 2/16/17 from

                                                         12:30PM to 1:30PM                                                                                                  10:30AM to 11:30AM


Chris Lundquist Will Speak On PACT Technology At MBA’s National Mortgage Servicing Conference

Chris Lundquist will be speaking about PACT’s proprietary technology for automated Chapter 13 Trustee Payment Posting and Claims Tracking at the Mortgage Bankers Association National Mortgage Servicing Conference on Wednesday 2/15/17 at 1:30PM at the Gaylord Texan Dallas Texas. 

PACT’s proprietary technology and patented process provides Chapter 13 ledger balance and payment reconciliation information on client’s accounts with over 200 nationwide Chapter 13 Trustees data daily.  PACT’s application suite is focused on helping clients directly address the misapplication of funds through Chapter 13 Trustee payment posting automation and Claims Tracking.  


Improves Operational Efficiency

- Proprietary automated process reduces labor cost for bankruptcy associates and cash management associates
- Decrease research and claim tracking effort for bankruptcy associates
- Increased cash management and payment posting
- Consolidated forum for trustee payment data


Increases Data Accuracy

- PACT’s patented processes analyzes and compares client’s data to over 200 Chapter 13 Trustees data daily. 
- Defines pre and post-petition funds allocation
- Data errors are proactively identified enabling them to be permanently corrected
- Eliminates data entry errors through automated posting of trustee payments
- Custom exception reporting
- Identifies and captures servicer-defined business conditions (e.g. payment changes)


PACT Unites Two Worlds Through An Integration Of Data

- Matches loans to trustee’s cases and claims
- Payment allocation instructions for trustee payments
- Reconciles payment records with the trustee’s ledger
- PACT interfaces with lender’s servicing systems and with the National Data Center Chapter 13 Trustee information
- PACT provides the industry a common communication platform/terminology at the data element level for all parties-in-interest (servicers, creditors, attorneys, trustees, judges, and debtors)
- PACT provides reports to help reconcile servicer payment records with trustee’s payment records and provide evidentiary reporting to the courts


U.S. Consumer Credit Posts Smallest Annual Gain Since 2013 - ABI

Bankers involved in consumer finance met yesterday with Senate Democrats to encourage them to consider backing a plan to convert the Consumer Financial Protection Bureau into a bipartisan commission, MorningConsult.com reported yesterday. Ross Carey, an executive vice president at U.S. Bancorp and chairman of the Consumer Bankers Association (CBA), said that the CBA’s board had meetings scheduled with about a dozen Senate Democrats in an effort to convince them that they should support a move away from the CFPB’s single-director structure.


Bankers Meet with Democrats to Push for Bipartisan CFPB Commission - ABI

Steven Mnuchin, President-elect Donald Trump’s pick for treasury secretary, said yesterday that he supports the Volcker Rule, but suggested that he wants to make some changes to the Dodd-Frank regulatory framework, MorningConsult.com reported. During his confirmation hearing before the Senate Finance Committee, Mnuchin said in response to a question from Sen. Mike Crapo (R-Idaho) that while he supports the Volcker Rule — a product of the 2010 Dodd-Frank law that restricts banks from placing risky bets with their own capital — he wants to examine its effects on market liquidity. “I think the concept of proprietary trading does not belong in banks with FDIC insurance,” Mnuchin said, referring to the Federal Deposit Insurance Corp. He added that the Volcker Rule’s impact on liquidity is “something I would absolutely want to look at,” and he cited a recent Federal Reserve report examining the issue.