By KIMBERLEY HAAS The Acting Comptroller of the Currency says there is a need to update the frameworks used to analyze bank merger applications. In a speech before the Brookings Institution on Monday, Michael Hsu discussed proposed mergers in the context of bank competition, financial stability, and facilitating the needs of communities. “Bank mergers have received significant attention this past year. Concerns about the negative effects of bank mergers on competition, communities, and financial stability have prompted some to call for a moratorium on merger activity,” Hsu said. “In response, others have defended the benefits of mergers. They note that the U.S. financial services market is highly competitive, and mergers allow institutions to achieve needed economies of scale and to…
The Federal Open Markets Committee (FOMC) meets Tuesday and Wednesday of this week. Market participants anticipate that officials will raise interest rates by 50 basis points, the first hike of more than 25 basis points since 2000. The Fed will also likely announce plans to roll assets off the central bank’s balance sheet, which it has alluded to until now. “We really are committed to using our tools to get 2% inflation back,” Fed Chairman Jerome Powell said this month. “It is appropriate in my view to be moving a little more quickly. And I also think there is something in the idea of front-end loading … that points to the direction of 50 basis points being on the table.”…
By KIMBERLEY HAAS Leaders at Rocket Mortgage are working to end the digital divide in Detroit where it is estimated that one-quarter of residents do not have internet access. That number is down from nearly 40% in 2016, according to Dana Afana at Detroit Free Press, but those working on the issue say there is still a long way to go especially considering how important the internet is post-2020. The Changing the Course initiative was established in that year to end the digital divide in Detroit, where Rocket Mortgage is located. Money raised from The Rocket Mortgage Classic, which made history in 2019 as the first PGA TOUR ever held in the city, supports the campaign. The tour raised $1.35…
The Community Home Lenders Association (CHLA) sent a letter to the Federal Housing Finance Agency (FHFA) commenting on its proposed increases in financial requirements for Fannie and Freddie. In February, the FHFA proposed updated standards that mortgage lenders would have to meet in order to sell loans to or service loans on behalf of Fannie Mae and Freddie Mac. The standards were set in 2015 and have remained with little modification since then. The update is meant to strengthen required capital and liquidity for seller/servicers with different business models, as well as provide for more transparency and consistency, “by incorporating cost and risk assumptions that were not previously considered and re-evaluating modeling assumptions and inputs, given changes in the servicing…
By KEVIN B. KIMBLE Editor’s Note: This article was written by a contributor and contains the individual’s views, opinions, or personal experiences. The Biden administration recently unveiled an action plan to address racial bias in home appraisals and other areas of the American housing system. As new research from Zillow shows, this couldn’t come at a better time. Zillow found that there is a widening mortgage approval gap along racial lines. Specifically, Black applicants are denied a mortgage at a rate 84 percent higher than white applicants. This figure has been worsening, representing an increase of 10 percentage points since 2019. The approval disparity has contributed to declining Black homeownership, a crucial aspect of wealth building. The negative trend in Black mortgage denials is…
Homeowners facing foreclosure can now stall proceedings while waiting to receive federal aid. The Federal Housing Agency (FHA) announced that Freddie Mac and Fannie will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been informed that the borrower applied for assistance through the Homeowner Assistance Fund. “FHFA is committed to sustainable homeownership. Today’s action will provide borrowers who need temporary mortgage assistance with additional time to be evaluated for relief through their state’s approved Homeownership Assistance Fund,” said FHFA Acting Director Sandra L. Thompson. The move is meant to help homeowners on the brink of foreclosure who may still be struggling to make on-time payments. The HAF provides up to $9.96 billion for…
By KIMBERLEY HAAS Officials at the U.S. Department of Housing and Urban Development are making an additional $3,285,353 in American Rescue Plan funding available to help fight housing discrimination related to the COVID-19 pandemic. The announcement was made on Tuesday and according to a press release, this is the third round of American Rescue Plan funding that targets COVID-19 related discrimination. About $16.1 million in funding has been awarded to 62 HUD Fair Housing Initiatives Program agencies to address the impact the pandemic has had on communities of color, low-income communities, and other vulnerable populations. Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, said in a statement that the COVID-19 pandemic continues to reveal…
By KIMBERLEY HAAS Officials at the U.S. Department of Justice are claiming that condominiums and apartment complexes in Hawaii were built without accessible features required by the Fair Housing Act. The federal act prohibits discrimination in housing on the basis of disability, race, color, religion, sex, familial status, and national origin. An amended complaint was filed Monday at the U.S. District Court for the District of Hawaii. Two of the five properties cited were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program. They are Kahului Town Terrace, in Kahului, Maui, and Palehua Terrace, in Kapolei, Oahu. The other three properties are Napilihau Villages and Napili Villas, in Lahaina, Maui, as well as Wailea Fairway Villas,…
In its budget proposal this week, the Biden Administration allotted a 34% budget increase for the Department of Housing and Urban Development of $11.6 billion over the fiscal year of 2022. This proposed budget includes $32 billion for the Housing Choice Voucher Program and almost $2 billion for the HOME Investment Partnership, aimed at affordable housing strategies. The industry has so far applauded the budget for its investments in housing as affordability dwindles and many Americans struggle to find housing within their budget. “A president’s budget is a wish list of policy goals and ambitions,” Shannon McGahn, the National Association of Realtor’s chief advocacy officer, said. “Many changes will be made to this plan, but it is good news that…
By KIMBERLEY HAAS Vice President Kamala Harris joined officials from the U.S. Department of Housing and Urban Development on Wednesday to announce the delivery of a plan designed to dismantle racial bias in the home lending and appraisal process. The Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) Action Plan submitted to President Joe Biden will, when enacted, represent the most wide-ranging set of reforms ever put forward to advance equity in the home appraisal process, according to a press release. During her speech, Harris described how a home ensures future financial security and peace of mind for families. “Imagine a young couple that saves enough money to put a down payment on a home. The day they…
