Top Story Lending Related

The Federal Emergency Management Agency has published a rule in the December 29, 2017, Federal Register identifying three communities in the State of Louisiana that are scheduled for suspension from the National Flood Insurance Program on January 5, 2018, for noncompliance with the floodplain management requirements of the program. The listed communities are:

• Unincorporated areas of Beauregard Parish;
• City of DeRidder (Beauregard and Vernon Parishes); and
• Town of Merryville (Beauregard Parish).

The FHFA Index for November indicates that, nationally, interest rates on conventional purchase-money mortgages increased from October to November, according to several indices of new mortgage contracts.

• The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.05 percent for loans closed in late November, up 7 basis points from 3.98 percent in October.
• The average interest rate on all mortgage loans was 4.03 percent, up 6 basis points from 3.97 in October.
• The average interest rate on conventional, 30-year, fixed-rate mortgages of $424,100 or less was 4.17 percent, up 6 basis points from 4.11 in October.
• The effective interest rate on all mortgage loans was 4.06 percent in November, up 5 basis points from 4.01 in October.
• The average loan amount for all loans was $307,800 in November, up $300 from $307,500 in October.

The Bureau has released its biennial report on the state of the credit card market. The report indicates that the total amount of credit line, number of accounts, average amount of card debt, and enrollment in online services have all increased over the past several years. The report found also that cardholders average fewer credit cards than before the recession, and more are signing up for secured cards that require a cash deposit.

An open meeting with the NMLS Ombudsman will be held Friday, February 9, 2018, from 8:30 a.m. to 11:30 a.m. CT, in conjunction with the 2018 NMLS Annual Conference and Training in New Orleans, Louisiana. Conference registration is not required to attend the meeting. Suggested agenda items regarding NMLS, state licensing, and/or federal registration are requested and will be accepted until January 17, 2018, via email to ombudsman@nmls.org. Individuals who submit discussion items must attend the meeting to present their issue. Please provide the issue and any relevant information on your company's letterhead. The meeting will be in-person only; there will be no dial-in available.

The CFPB circulated an email notice yesterday that it has launched a HMDA Check Digit Tool and Rate Spread Calcualtor, both available on the CFPB/FFIEC Resources for HMDA filers webpage.

OFAC has announced the designation and placing on the SDN list of the names of the Deputy Director and the First Vice Department Director of the Workers’ Party of Korea Military Industry Department (North Korea). See our OFAC Update for identifying information.

The Federal Reserve Board has released the G.20 Finance Companies report of owned and managed receivables outstanding / auto loans: terms of credit report for October 2017.

The FDIC has issued FIL- 64-2017 with ways insured depository institutions, including community banks, can partner with minority depository institutions (MDIs) to the benefit of all institutions involved, as well as the communities they serve. Highlights include:

• Collaboration among MDIs or between MDIs and non-MDIs can provide viable options for sound and profitable lending and investments that meet the needs of underserved communities.
• By collaborating with each other or with other community banks, MDIs may be able to enhance product and service offerings to unbanked and underbanked consumers located in low- to moderate-income geographies.
• In many cases, institutions engaging in collaborative activities and partnerships with MDIs may receive Community Reinvestment Act (CRA) consideration for such activities.
• Institutions interested in pursuing collaborative relationships with MDIs may contact the appropriate Regional Director or Regional MDI Coordinator for insight on possible collaboration opportunities with specific MDIs. Institutions may also pursue such collaborative opportunities directly.

The OCC has released its OCC Mortgage Metrics Report, Third Quarter 2017, which shows that 94.8 percent of mortgages included in the report were current and performing at the end of the quarter, the same as a year earlier. The report also showed that foreclosure activity has decreased from the previous quarter. Reporting servicers initiated 34,266 new foreclosures during the third quarter of 2017, a 4.7 percent decrease from the previous quarter and a decrease of 28.5 percent from a year earlier. Servicers implemented 25,799 mortgage modifications in the third quarter of 2017. Seventy-eight percent of the modifications reduced borrowers’ monthly payments.

The final agenda for the 2018 NMLS Annual Conference and Training is available.