Daily Dose

Ocwen Financial filed two emergency motions requesting the immediate court action restraining the cease and desist order brought by the Illinois Department of Financial and Professional Regulation, Division of Banking and the Commissioner of Banks of the Massachusetts Division of Banks. The recent events have caused Fitch to give Ocwen a new rating.

In an effort to reduce community blight and vandalism damage to vacant properties, as well as maintain property values, Freddie Mac released an allowable for clear boarding in a recent bulletin. Freddie Mac will reimburse servicers for use of clear boarding up to $2.25 per united inch, with a maximum amount of $2,000. According to Freddie Mac, in order to qualify, the clear boarding must be made of polycarbonate material or at least the same strength, at least 3/16” thick, and properly installed.

Following the election of Donald Trump, the financial sector, including banks, saw a average earning growth of 16.4 percent, with revenue growing over 9 percent. Bank stocks fell 1.5 percent during the first three months, though have remained high and stable since.

Though prices are up and mortgage rates are rising, housing is still pretty affordable—at least by historical standards. According to new data, the beginning of 2017 saw steady credit access, rising borrower FICO scores, and a decline in refinance transactions. The average FICO score of a first-time GSE buyer in January was 739.7.

The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board announced that Wells Fargo had remedied the deficiencies in its 2015 resolution plan. Wells Fargo will no longer be subject to the growth restrictions which were imposed last year. The Dodd-Frank act requires resolution plans, commonly known as “living wills” which describe the company’s strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure of the company.

Mortgage fraud risk is up across the country, according to the CoreLogic National Mortgage Application Fraud Risk Index (FRI) for Q1 2017. The FRI is a measure of loan-application level fraud risk in the mortgage industry, based on residential mortgage loan applications processed by CoreLogic Loan Safe Fraud Manager. The index jumped 8 percent in Q1, up to 132 from 113 a year ago and 122 last quarter.

With the federal funding running out on Friday and a potential government shutdown looming, expect to see an impact on the mortgage industry. Access to tax documents and other government paperwork may prove difficult in the event of a shutdown. CNBC noted that “non-essential” employees, such as those that process paperwork through the Internal Revenue Service, would be furloughed during a shutdown, causing roadblocks for those applying for mortgages.

According to a new home price index, national housing prices have appreciated to a new post-crisis high as of February. With an index of $268,000 for the month, the U.S. saw its highest home price growth since June 2006. Prices rose 0.8 percent for the month and 5.7 percent over the year.

In the wake of President Trump’s executive order targeting Dodd-Frank and Consumer Protection, the Financial Services Committee (FSC) will hold a hearing to discuss the Financial CHOICE act. Committee Chairman Jeb Hensarling first unveiled the rules and principles guiding Financial CHOICE last June, and the act was approved by the FSC in September. At the center of the act is a plan eliminate bailouts and hold Wall Street accountable. Additionally, the act calls for banks to be better capitalized, and to reduce the strain of regulation on smaller banks.

New data shows inventory is down 5 percent over the year, with the biggest decreases in Minneapolis, Columbus, and Seattle. Home values are up 6.8 percent year-over-year, hitting $196,500 for the month of March. Values appreciated most in Tampa, Dallas, and Seattle.