twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.
MBA Chief Lays Out Aggressive Strategy

Mortgage Daily interviews David Stevens

Oct. 23, 2012

By Mortgage Daily staff

Mortgage Bankers Association Chief Executive Officer David H. Stevens sat down with Mortgage Daily at the trade group's annual conference this week in Chicago to talk about qualified mortgages, agency representations and warranties, and real estate appraisals. He also took an aggressive posture with convention attendees about the impact that the industry should strive to have in the development of regulations.

"The next few months really are going to set the roadmap for what housing finance and really homeownership looks like for not just the next year but decades to come," Stevens said. "So the real question is ... 'what happens with this large number of rulemakings that's all set to roll out in first quarter.' We have seven major rulemakings that are coming that should be finalized by ... yearend or early first quarter."

Impacted from the upcoming rulemakings are servicing, high-cost loans and 'qualified mortgages.' In addition, implementation of the Dodd-Frank is imminent.

Stevens noted that while the safe harbor provision of the qualified mortgage is needed to avoid constraining the housing market, what is first most important is getting the QM definition down and clarifying ability to pay. The broader and clearer the definition is, the more the homeownership market will benefit.

Policymakers -- including Department of Housing and Urban Development Secretary Shaun Donovan, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke -- have all publicly stated that anything that tightens credit further is bad for housing.

sketch of David Stephens
sketch of David Stevens
by Stephen McConnell

"I'm hoping that the policymakers take both sides," he stated. "At the end of the day we're going to have ... very high credit quality loans in the QM, regardless ... Hopefully it reflects certain type of lending we're doing right now -- which some could argue is too tight anyway."

On the upcoming changes to Fannie Mae's and Freddie Mac's representations and warranties, Stevens said too little it known about the changes to determine the impact. For instance, it isn't clear exactly what "misstatement" means, leaving interpretation open and repurchase liability unknown.

Until these type of issues are clarified, lenders will be cautious.

One problem is that Fannie and Freddie, which would have failed without government support, aren't subject to the rulemaking process, leaving the determination of the policies in the hands of two failed companies.

"Consider some of the recent major announcements of planned policy changes from the GSEs -- all done without public review and comment," Stevens said in prepared comments for a speech given on Monday at the event. "They include changes to the minimum net worth requirements, arbitrary g-fee changes, volume limits for some existing sellers, new servicing rules, a new framework for reps and warrants, and changes to their securitization platform"

The former Federal Housing Commissioner acknowledged the difficulty in appraisal values keeping up with rising sales prices as appraisers compensate for past deficiencies and remain overly cautious. He noted recent comparable sales are very important, especially in the lower-end market where the is little margin for error due to higher loan-to-value ratios.

Stevens highlighted how various housing groups have voiced concern over not reflecting the right value of the home, failing to reflect market stabilization and the use of foreclosures as comparable properties.

He noted that housing opportunity is under attack. He pointed to litigation risks, regulation and agency policies that are forcing housing opportunity into retreat.

Stevens painted a picture of an industry that was in worse shape a year ago than it is now.

"Back then we were reeling from the blows to our reputation; dealing with the near destruction of our industry and a wake of turmoil to homeowners across the country. Fannie and Freddie were still hurting badly," he said in the prepared statement. "Dodd-Frank was in our future -- with its thousands of pages of new rules -- yet it wasn't in our immediate future like it is today."

The MBA chief called today's policymaking dysfunctional. Other problems include multiple rulemakings from the Consumer Financial Protection Bureau, which is a "huge" compliance burden for lenders to absorb; new CFPB audits for non-bank lenders; and requirements by states, federal banking regulators and HUD.

In addition, HUD's disparate impact rule and the QM's ability-to-repay rule appear to be "a case of where one rule the federal government is promoting could produce an outcome that the federal government will be punishing," leaving lenders in a no-win situation.

So Stevens proposes the coordination of housing policy through a "traffic cop" for all new rules -- a liaison who ensures regulations compliment one another rather than conflict and that regulators communicate with each other.

He also emphasized that the mortgage industry needs to be involved in the development of regulation.

"At MBA, we think it's time for this to change," Steven said. "We must demand the opportunity to have input on any rules the GSEs are considering--before they are set in stone. This is only reasonable -- and MBA is going to fight for it."

next story

back to current headlines

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

Appraisal News | AMC Directory
Appraisal industry news coverage, including stories about independence requirements, AVMs and appraiser fraud.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders