Government

The House will vote on the Financial CHOICE Act, a Dodd-Frank “off-ramp”, this coming Wednesday. Republicans proposed this reform to the financial system in mid-April to free the U.S. from government micromanagement when it comes to excessive regulations on the financial system. See what else will take place in the upcoming week here.

Fourteen investors announced Friday that trustees accepted the settlement offer from the Plan Administrator for Lehman Brothers Holdings Inc., a global financial services firm that declared bankruptcy in 2008. The announcement is said to be an important step in resolving the Lehman RMBS claims. The settlement will payout a minimum of $2.4 billion, subject to a judges approval.

On Thursday, Federal Reserve Governor Jerome Powell went on record saying the Fed plans on reviewing some of what he believes are the more outdated rules mandated by the Dodd-Frank act. Banks’ board of directors could see a relief of some of the day to day responsibilities and concentrate more on big picture if Powell is successful. Banks may also see more transparency in the CCAR, something a majority of the industry has been requesting for years.

The Department of Labor released its May 2017 Employment Situation Friday reporting changes in household and establishment survey data. Total nonfarm payroll employment increased, however unemployment rates were fairly stagnant. Experts predict this discouraging report could mean rate hikes in 2017’s future.

HUD Secretary Ben Carson is preparing for a big June as he kicks off the newly proclaimed National Homeownership Month with a forum at his own agency today. He’ll also go before Congress next week to discuss potential HUD budget cuts via Trump’s recent 2018 budget blueprint, which slashes the agency’ funding by more than $6 billion. The cuts will also significantly reduce HUD’s rental assistance program, which Carson recently discussed in a Sirius XM radio interview.

Due to a shortage of licensed and certified appraisers, major national financial regulatory agencies have issued an advisory to help reduce delays in the consideration of loan applications in rural communities. Since loans cannot be executed without appraisals, the advisory outlines two options to remedy the problem. The FDIC has suggested that states issue temporary practice permits and engage in reciprocity, or that effected institutions submit a request temporary waivers to set aside licensing requirements.

The latest CFPB Monthly Complaint Report shows older Americans face a unique set of financial difficulties compared to their younger counterparts. The group regularly cites reverse mortgage concerns—specifically servicing issues and difficult changing loan terms—when lodging complaints with the CFPB. Older Americans also cite financial scams, confusion around deferred- and zero-interest credit cards, and being charged unauthorized add-on products as frequent financial complaints.

According to HUD Secretary Ben Carson, with “the right mindset,” many of the low-income citizens using his department’s services could cease to need them. Carson said as much in a recent radio interview, when he talked poverty, housing, and the role the government should play in both. The interview comes on the back of President Trump’s recent 2018 budget blueprint, which includes more than $6 billion in cuts to the HUD budget.

The Federal Housing Finance Agency has conducted its monthly interest rate survey for 4,437 loans closed during the last five business days in April across 17 lenders, and has reported a decline by 14 to 15 basis points across all mortgage interest rates. The average loan amount has also seen a slight drop of $1,100 after experiencing a spike in March. And while average loan amounts fluctuate from one month to the next, interest rates have been dropping since February.

One lawsuit has begat another in California. Ocwen Financial Corp. has alleged that the monitor appointed to review its business practices in the wake of a mortgage servicing settlement ran through an almost $45 million budget in half the time and with half the work. Ocwen alleges that Fidelity Information Services overbilled and charged for improper expenses, including associate trips to casinos and strip clubs.