Regulators’ targeted lending overtures

This week, eight federal agencies all got on the same page to tell lenders to make targeted lending programs to reach underserved borrowers.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   This week, eight federal agencies all got on the same page to tell lenders to make targeted lending programs to reach underserved borrowers.   It's not clear to me that the letter will convince lenders to adopt special purpose credit programs, which many view as a compliance risk, or an admission of fault. The main objection I hear from lenders is that regulators will not approve the targeted programs ahead of time, and there is no safe harbor.   The dynamic is counterintuitive. Regulators are practically begging lenders to roll out targeted lending programs, yet lenders believe doing so might lead to unwelcome attention from those same regulators.   Lisa Rice, CEO of the National Fair Housing Alliance, is a staunch advocate of SPCPs. Her group was thrilled when they heard that regulators put out a statement encouraging lenders to use the programs. But Rice also highlighted a missing piece that could bring lenders on board: support from the GSEs.   "There will definitely be an uptick in SPCPs and if the GSEs develop programs, we will see much broader participation in these important programs," Rice wrote in an email.   Fannie Mae has recently hinted that they might soon take action on that front.   "In connection with our Equitable Housing Finance Plan and in support of other efforts we may undertake to support equitable housing, we anticipate establishing and supporting special purpose credit programs," Fannie Mae wrote in its annual financial report.   The Federal Housing Finance Agency has yet to OK the GSEs' equitable housing finance plans, however, although they were slated to go into effect at the start of this year. Fannie Mae submitted its plan last December.   LOs, do you know any lenders with a special purpose credit program in the works? What challenges do you see in implementing a lending program that targets borrowers, based on protected class? Send your thoughts to gkromrei@housingwire.com   Georgia Kromrei Senior Mortgage Reporter, HousingWire Mortgage apps continue downward trend Mortgage Higher mortgage rates have thumped interest in refinances, with activity down in six of the first seven weeks of 2022. You can't store eNotes in Fort Knox, but you can vault them with IDS. The IDS eVault allows lenders to securely store and deliver documents, including eNotes, to partners, as well as register eNotes with MERS. Want your loan docs locked up tighter than Fort Knox? Register now to join IDS on Demo Day to learn more. Sign me up! Sponsored by IDS, Inc. How lenders can serve the underserved in 2022 Presented by SRE It will fall to the mortgage originator to send out a clear message to home loan borrowers, letting them know their options and pushing for unfiltered contact with new homebuyers. Housing permits look great — until you look at completions Politics & Money, Real Estate, HW+ Exclusive Content While the housing permits data is fantastic at 1,899,000, the housing completion story is a giant mess right now. Great training makes great Loan Officers. Grow with us. With robust training, uncapped earning potential, competitive benefits and career advancement opportunities, you can grow with confidence as a Pennymac Loan Officer. We can provide you with a foundation for long-term growth and success.  Apply now! Sponsored by Pennymac Ocwen agrees to pay $1.5M to settle class action Mortgage Nonbank mortgage servicer Ocwen agreed to pay $1.5 million to settle a class action lawsuit regarding alleged phone conversations recorded without clients' consent. HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

Share this

Share on FacebookPlus on Google+