Government

Following a contentious hearing earlier this week, the Financial Services Committee voted to move forward with the Financial CHOICE Act to a full House vote. The Financial CHOICE Act "ends taxpayer-funded bank bailouts, and unleashes America’s economic potential," said FInanical Services Committee Chairman Jeb Hensarling.

Despite sluggish economic growth in Q1 and the widely held assumption that the Fed would raise rates at least two more times this year, the Federal Open Market Committee opted to keep the federal funds rate as is at its May meeting. Raised in March, the rate currently sits at 1 percent. The Committee cited job gains and lower unemployment as factors in its decision.

The Consumer Financial Protection Bureau (CFPB) has denied Ocwen Financial Corporations’s attempt to expedite a court ruling on the constitutionality of the Bureau. The CFPB said that the mortgage servicer shouldn’t get special treatment in the case, alleging it failed “every stage of the mortgage servicing process.” The CFPB attempted to block Ocwen’s expediting attempt by telling a Florida federal court to deny Ocwen’s attempt at fast-tracking its constitutional challenge against the agency’s structure.

On Tuesday, the Office of the Comptroller of the Currency announced the stepping down of Comptroller Thomas Curry on May 5. That day, U.S. Treasury Secretary Steven Mnuchin announced his intention to appoint Keith Noreika as a Deputy Comptroller and designate him the First Deputy Comptroller of the Office of the Comptroller of the Currency (OCC). Noreika will become Acting Comptroller of the Currency on May 5 and is currently a partner at Simpson Thacher & Bartlett LLP and was a partner at Covington & Burling, specializing in banking regulation.

According to the enterprise’s recent financial results, Freddie Mac posted a net income of $2.2 billion for Q1 and will pay as much in dividends to the U.S. Treasury. The income is lower than Q4 2016, as are the agency’s single-family revenues, purchase volumes, and mortgage-related investments. Freddie attributed these declines to largely steady interest rates and low market spreads.

The House Financial Services Committee held a second hearing on the Financial CHOICE Act on Tuesday. Intended to be a replacement for Dodd-Frank, the CHOICE Act aims to increase regulator accountability, discourage financial fraud and insider trading, and ensure taxpayers aren't on the hook for big bank bailouts. The Act was introduced by Rep. Jeb Hensarling (R-Texas).

The Supreme Court found that the Miami's claims against Bank of America and Wells Fargo fell within the “zone of interests” established by the Fair Housing Act (FHA), which means that Bank of America and Wells Fargo’s practices had led to decreases in tax revenue and increased costs for maintaining foreclosed properties. What are the implications of this finding? We hear from industry lawyers to find out.

In an interview with Fox Business on Monday, Secretary of the Treasury Steven Mnuchin said he is committed to GSE reform—and that it might not include privatizing Fannie or Freddie. The main goal of the Trump administration, according to Mnuchin, is to provide "ample credit for housing" without putting taxpayers at risk. On the fate of the GSE's, Mnuchin said, "We’re committed to not leaving them as-is for the next four years." Mnuchin also discussed the Freedom of Information Act allowed GSE funds to be relocated toward other parts of the government—including the Affordable Care Act—without public knowledge.

Tripp Levy PLLC announced on Monday that the deadline for investors to pursue their claim against Ocwen in the class action lawsuit is approaching. These investors seek to recover compensation damages caused by Ocwen’s violations of the Securities Exchange Act, and those that purchased shares of Ocwen during the period between May 11, 2015 and April 19, 2017 are encouraged to contact the firm soon.

On Tuesday at 9 a.m. EST, Freddie Mac will hold a conference call to discuss its Q1 2017 financial results. The call will be webcast on the Freddie Mac website as well, and will be replayable for approximately 30 days following the event. Freddie Mac’s previous results, for Q4 2016, showed a net interest income of 14.4 billion for the full year, down 4 percent year-over-year.