Government

On Thursday, both FHFA Director Melvin L. Watt and Treasury Secretary Steven T. Mnuchin separately addressed the current state of the GSEs. Though Mnuchin discussed the priority of housing finance and regulatory reform in front of the Senate, at an industry conference Watt described the many successes of the FHFA in the last nine years. Watt warned that reforms made during conservatorship should not be ignored by congress during the reworking of housing finance reform.

Debt collectors that knowingly pursue stale debt in bankruptcy proceedings do not run the risk of facing potential consumer protection lawsuits, accoridng to a Supreme Court ruling. The ruling came after the high court voted 5-3 to overturn an Eleventh Circuit decision which had found Midland Funding LLC, a purchaser of unpaid debt, potentially liable under the Fair Debt Collection Practices Act.

The second-annual Five Star Diversity Symposium, a day-long event focused on advancing the conversation on diversity within the mortgage industry, featured keynote addresses from diversity leaders as well as roundtable discussions and panels. The Diversity Symposium includes representatives by several key companies and government agencies within the mortgage industry.

President Donald Trump may be gearing up to nominated Brian Montgomery to head up the FHA. Currently the Vice Chairman of The Collingwood Group, Montgomery previously served as FHA Commissioner under President George W. Bush and President Obama. He also served as Asisstant Secretary for HUD and Deputy Assistant at the White House.

Because of the need to establish this fiscal balance, the road to achieve Trump’s proposals will be long and rocky, and will require the hard work and cooperation of both sides of the aisle. This proposal has also raised many questions about what Trump’s plan would mean for the housing market. Due to the current lack of detail in his proposed outline, it is difficult to accurately predict the impact a tax system overhaul of this magnitude would have on the economy.

The House of Representatives has amended HR 1694, extending the nine exemptions of the Freedom of Information Act to Fannie Mae and Freddie Mac. The amendment was sponsored by Rep. Hank Johnson (D-Georgia). Passed in April, HR 1694 requires the GSEs to adhere to the FOIA, something they've never had to do since entering conservatorship in 2008.

A recently-published letter from Financial Services Committee Chairman Jeb Hensarling (R-Texas), originally sent in April to Treasury Secretary Steven Mnuchin, informed Mnuchin of the Financial Services Committee’s intention to retain control of all communication between the committee and the Treasury. Under the 1967 Freedom of Information Act, Congress is exempt from requests for records and material, and as Hensarling stated, communications between the Financial Services Committee and various branches of government constitute congressional records. The Financial Services Committee’s top Democratic Representative, Maxine Waters (D-California), criticized Hensarling’s letters.

On Thursday at 10 a.m. EST, the Senate Banking Committee will hold a hearing titled “The Status of the Housing Finance System After Nine Years of Conservatorship,” with Director of the Federal Housing Finance Agency (FHFA) Mel Watt serving as a witness. With Fannie Mae and Freddie Mac preparing for change under the current administration, the nine-year mark of the conservatorship of the GSEs could mean big changes.

Friday’s employment report for April from the Bureau of Labor Statistics showed strong growth overall, but the same could not be said for the mortgage industry. Industry professionals called the report's mortgage job data "disappointing," but the jump in growth in all jobs could mean further rate hikes from the Fed.

The Consumer Financial Protection Bureau (CFPB) is planning to assess the effectiveness of the Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule. The rule, introduced in January 2013 and which took effect in January 2014, was designed to assist consumers who were behind on mortgage payments. Currently, the Bureau is seeking comment from consumers, consumer advocates, housing counselors, mortgage loan servicers, industry representatives, and the general public regarding the rule, and will issue a report of their assessment by January 2019.