Tag Archives: Federal Reserve System

New Low For Mortgage Rates

2 Oct
A percent sign.

A percent sign. (Photo credit: Wikipedia)

The Federal Reserve’s new stimulus has sent mortgage rates plummeting.

Freddie Mac’s Primary Mortgage Market Survey showed new record lows in all categories except the 5-year adjustable-rate mortgage (ARM), which did show a decrease from the week before. The GSE reported that the 30-year fixed average fell to 3.40 percent (0.6 point) for the week ending September 27, down from 3.49 percent in the previous week’s survey.

The 15-year fixed also dropped, averaging 2.73 percent (0.6 point) – down from 2.77 percent.

The continuous drops add to an already amount of good news for the housing market.

“Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market,” said Frank Nothaft, VP chief economist for Freddie Mac. “For instance, the S&P/Case-Shiller 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010.”

Nothaft also pointed to new home sales, in particular the strong two-month pace set in July and August.

According to Bankrate’s weekly survey, the 30-year fixed average is down to 3.55 percent from 3.70 percent a week before. The 15-year fixed fell along with it, averaging 2.88 percent (from 2.95 percent previously). The 5/1 ARM also fell, but only slightly – it averaged 2.68 percent for the week, down from 2.69 percent a week ago.

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Fair Lending Hot Topics Webinar Oct. 17, 2012

25 Sep
Federal Reserve Bank of San Francisco

The Federal Reserve System invites you to join a webinar on Fair Lending Hot Topics. This Outlook Live webinar will take place on Wednesday, October 17, 2012, 11:00 a.m. – 12:30 p.m. Pacific Time (2:00 p.m. – 3:30 p.m. Eastern).

This webinar is part of an ongoing series of events focused specifically on consumer compliance issues. To register for the FREE webinar, please visit the Outlook Live website at http://www.philadelphiafed.org/bank-resources/publications/consumer-compliance-outlook/outlook-live/

This discussion of fair lending issues and hot topics is sponsored by the Non-Discrimination Working Group of the Financial Fraud Enforcement Task Force.

Speakers at this event will represent a variety of agencies in addition to the Board of Governors of the Federal Reserve System, including the Department of Justice, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Department of Housing and Urban Development, and the National Credit Union Administration.

We will follow the presentation with a Questions and Answers segment, where we will respond to audience questions.

This webinar is part of an ongoing series of events focused specifically on consumer compliance issues. The “Outlook Live” Audio Conference is a Federal Reserve System initiative produced in conjunction with the quarterly newsletter Consumer Compliance Outlook.

Compliance Webinar by the Federal Reserve System

21 Nov
Seal of the United States Federal Reserve Syst...

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Federal Reserve System is hosting a webcast on Consumer Compliance Hot Topics – 2011 Year in Review/2012 Year in the Making.  This “Outlook Live” Webinar will take place Thursday, December 15, 2011 from 2:00pm – 3:00pm Eastern time. 

This webinar is part of an ongoing series focused specifically on consumer compliance issues.  To register for the FREE webinar, please visit the Outlook Live website at http://www.philadelphiafed.org/bank-resources/publications/consumer-compliance-outlook/outlook-live/

 Compliance professionals are faced with an increasingly difficult job of keeping pace with today’s fast changing regulatory environment.   In addition to implementing a host of new rules and regulations, compliance professionals must also focus on emerging risks in the industry and adjust the way they look at compliance – i.e., from a technical perspective to one that focuses on the impact of their bank’s products and services on consumers.    With these considerations in mind, senior Federal Reserve staff will highlight a number of recent regulatory changes, discuss a number of current hot topics in the industry, and provide a glimpse of the regulatory changes that can be expected in the future.                                                                                                         

The “Outlook Live” Audio Conference is a Federal Reserve System initiative produced in conjunction with the quarterly newsletter Consumer Compliance Outlook

New LO Compensation Here To Stay?

8 Apr

Loan Originators have known for months that it was imminent:  compensation was no longer going to be paid in the same way.  For years they have been paid by the borrower in the form of an origination fee “up front” and by the bank in the form of yield spread premium “on the back”.  No longer, on products where back end premiums were fat.

The purpose of the Federal Reserve Board’s new rule was to “protect” consumers from fees which are tied to the rate offered.  To put it very simply, by removing back end premiums and by ruling that loan originators can no longer pay some of the closing costs for the borrower, the Fed has taken away the loan originator’s competitive edge.  The consumer can no longer benefit from discounts that drive competition between lenders.

The National Association of Mortgage Brokers (NAMB) has taken steps to fight the Fed on this new rule.  A stay on the April first implementation of the new rule lasted only five days, however.  The United States Court of Appeals ruled against the stay and appellate judges lifted the stay.  The new LO compensation rule is now in effect but the NAMB is committed to continuing the appeal.

“NAMB will continue to fight for its members, our industry, and ultimately, the consumer,” said NAMB President Mike D’Alonzo. “The voice of the mortgage industry needs to be heard and we vow to make sure that happens! We thank everyone for their continued support.”

See the NAMB press release here: http://www.namb.org/namb/NewsBot.asp?MODE=VIEW&ID=296&SnID=933537982

The House Financial Services Committee Set to Examine New Compensation Rule

16 Feb
Members of the Committee on Financial Services...

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The  Financial Services Committee will look at implementation of the Federal Reserve’s rule that changes the compensation model for mortgage originators prior to the effective date of April 1.  The committee said it’s concerned the rules may have an adverse impact on the ability of small businesses that originate mortgages to remain in business.

Drafted earlier this year, the Fed’s rule is designed to prevent compensation based on a loans terms or conditions and to prohibit steering a consumer into a higher rate to receive additional compensation.  The Mortgage Bankers Association joined other trade groups in asking the Fed to delay the implementation of the rule. 

“The Rule is far-reaching and requires major changes to long-operating compensation practices that heretofore have been both legal and prevalent,” said the MBA. “Unfortunately, in our view, the Rule does not definitively address many matters of particular importance, and has engendered numerous questions from creditors and loan originators seeking to comply.”

The National Association of Mortgage Brokers praised the committees decision to look into the proposal.  The association argued that mortgage brokers and lenders are ill-equipped with how to fully comply.

adapted from Reverse Mortgage Daily