Daily Dose

For going on two months, Ocwen Financial Corporation, the country’s largest nonbank mortgage loan servicer, and the Consumer Financial Protection Bureau (CFPB) have been at odds. Beginning in late April, the CFPB sued Ocwen and its subsidiaries claiming that they have been “failing borrowers at every stage of the mortgage servicing process.” Now, a federal judge has delayed Ocwen’s bid to test the constitutionality of the CFPB.

Since the housing crash and recession of 2008, most metro areas have fully recovered while others are still lagging behind the housing recovery. Using the Federal Housing and Finance Agency’s Home Price Index, a report has been put together on the top and bottom 10 metros that have recovered the most and the least respectively. Five more metro areas were considered “fully recovered” this quarter.

One of the industry’s biggest professional groups appointed new leaders this week. The Federation of REO Certified Experts—more often referred to as “FORCE”—announced new members to its Advisory Council on Thursday. Among the new appointees are Hugh Morrow of RE/MAX Preferred in Birmingham, Alabama; Tara Nagelhout of Emerald Valley Real Estate in Eugene, Oregon; Steve Pagano of Coldwell Banker in Huntington Station, New York; Terry Rasner-Yacenda of Reno Tahoe Realty Group in Reno, Nevada; and Dick Thackston of R.H. Thackston & Company in Winchester, New Hampshire. Nancy Braun was named Chairperson, replacing Mike Truitt.

New data shows that mortgage originations are in freefall. While both purchase loan originations and refinances took a hit, refis saw the steepest drop, decreasing 34 percent over the first quarter of the year. Purchase originations dipped 21 percent over the same period. The average credit score of borrower is also on the decline, which could dampen the market if the trend keeps up.

The Dodd-Frank Act is being voted on by the House this upcoming Wednesday. In mid-April, Republicans proposed a reform to the financial system, The Financial Choice Act, which is essentially an “off-ramp” for financial institutions. Find this and more in the Week Ahead.

Bank boards might see less directives from the Federal Reserve if Jerome Powell has his way. The Federal Reserve Governor would like to allow banks’ board of directors to spend more time worrying about management and less time on day to day tasks. He also acknowledges the industry’s frustration with the lack of transparency in the CCAR, and would like to amend it to make it more efficient and effective.

New data shows rents are steadily increasing, and with increasingly tight housing inventory, those rents will likely get even higher as potential buyers are driven toward renting. Experts expect rents to increase 1.5 percent by the end of the summer. They’ve already grown more in five months of 2017 than all of 2016 combined.

Discouraging results in the May 2017 Employment Situation are leading experts to believe there could be a rate hike in 2017. Unemployment rates were fairly stagnant and though total nonfarm payroll increased, results were well under predictions. Wage growth showed no improvement. 

Dr. Ben Carson, Secretary of the Department of Housing and Urban Development, is gearing up for a big June. On the heels of a recent proclamation from President Trump, declaring the month “National Homeownership Month,” Dr. Carson hosted an academic forum at his agency earlier today. He’s also preparing to go before Congress next week to discuss Trump’s recent 2018 budget blueprint, which proposes a $6.2 billion cut from HUD’s funding.

According to the latest Mortgage Bankers Association weekly survey ending May 31, 2017, mortgage applications decreased since last week’s report. The Market Composite Index, a measure of mortgage ...