Top Story Lending Related

The Federal Emergency Management Agency (FEMA) appears to have cleared up a regulatory log jam, and has published three final rules in the Federal Register, each of which identifies communities where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension because of noncompliance with the floodplain management requirements of the program:

• 81 FR 49169 -- effective August 3, 2016, affecting communities in Arkansas, California and Nebraska
• 81 FR 49171 -- effective July 20, 2016, affecting communities in Maine, Maryland, Massachusetts, Missouri, and New Jersey
• 81 FR 49175 -- effective August 17, 2016, affecting communities in Alabama, Illinois, New Jersey and West Virginia

The Consumer Financial Protection Bureau released early this morning an outline of proposals under consideration that would overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt. Under the proposals being considered, debt collectors would be required to have more and better information about the debt before they collect. As they are collecting, companies would be required to limit communications, clearly disclose debt details, and make it easier to dispute the debt. When responding to disputes, collectors would be prohibited from continuing to pursue debt without sufficient evidence. These requirements and restrictions would follow the debt if it were sold or transferred. The proposals would affect third-party debt collectors; the Bureau said that it intends to address first-party debt collection practices under a separate track.

The outline of the proposals under consideration is in preparation for convening a Small Business Review Panel to gather feedback from small industry players, which is the next step in the rulemaking process. In connection with that review process, the Bureau also released a report, "Study of Third-Party Debt Collection Operations."

Today's announcement was made in advance of this morning's Sacramento, California, field hearing on debt collection, at which the outlined proposals will be formally presented in an address by CFPB Director Richard Cordray.

The FDIC has issued FIL-49-2016 with guidance on prudent risk management by financial institutions of oil and gas exposures. The guidance reminds FDIC-supervised institutions with direct or indirect oil and gas (O&G) exposures to maintain sound underwriting standards, strong credit administration practices, and effective risk management strategies. When O&G-related borrowers experience financial difficulties, the FDIC encourages financial institutions to work constructively with borrowers to strengthen the credits and to mitigate losses where possible.

The Federal Housing Finance Agency (FHFA) has released its June indices which indicate nationally, interest rates on conventional purchase-money mortgages were nearly flat from May to June.

• The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.69 percent for loans closed in late June, down 1 basis point from 3.70 percent in May.
• The average interest rate on all mortgage loans was 3.70 percent, unchanged from May.
• The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.88 percent, down 1 basis point from 3.89 in May.
• The effective interest rate on all mortgage loans was 3.83 percent in June, unchanged from May. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
• The average loan amount for all loans was $333,900 in June, up $4,400 from $329,500 in May.

The Consumer Financial Protection Bureau has updated its index of the questions addressed in CFPB webinars on the Know Before You Owe mortgage disclosure (TRID) rule. The Bureau has added the questions addressed during its March 1 and April 12, 2016, Outlook Live webinars.

The CFPB has released its monthly complaint snapshot for July 2016, which highlights consumer complaints about credit cards. The report shows that consumers continue to complain about trouble receiving clear information from their credit card issuers regarding creditworthiness, and the assessment of payments and fees. This month's report also highlights trends seen in complaints coming from Washington State and the Seattle metro area. As of July 1, 2016, consumers in that area have submitted 18,900 of the 930,700 complaints handled by the Bureau.

HUD has announced that the Bartlesville Redevelopment Trust Authority will receive a $500,000 grant to redevelop the Bartlesville, Oklahoma, abandoned Methodist Church and build additional affordable housing units targeted to low-income residents. The grant is funded through HUD’s Hope VI Main Street Program. The funds will be utilized to assist in the reconfiguration of a 90-year-old abandoned church campus into a mixed-use development that will include affordable housing, market rate housing, retail space and hospitality space.

The Department of Housing and Urban Development and the Census Bureau have reported that June 2016 sales of new single-family houses were at a seasonally adjusted annual rate of 592,000, 3.5 percent above the revised May rate of 572,000 and 25.4 percent above the June 2015 estimate of 472,000. The median sales price of new houses sold in June 2016 was $306,700; the average sales price was $358,200. The seasonally adjusted estimate of new houses for sale at the end of June was 244,000. This represents a supply of 4.9 months at the current sales rate.

The Federal Deposit Insurance Corporation has updated its data on Professional Liability Lawsuits through July 25, 2016. From January 1, 2009, through July 25, 2016, the FDIC has authorized suits in connection with 151 failed institutions against 1,213 individuals for D&O liability. This includes 109 filed D&O lawsuits (99 of which have fully settled, and 1 of which resulted in a favorable jury verdict) naming 832 former directors and officers. The FDIC also has authorized 72 other lawsuits for RMBS, LIBOR suppression, fidelity bond, insurance, accounting malpractice, appraiser malpractice, securities, and attorney malpractice claims. In addition, 64 residential mortgage malpractice and fraud lawsuits are pending, consisting of lawsuits filed and inherited.

A joint press release by Treasury, HUD, and the FHFA has announced the release of a white paper designed to serve as a guide for future loss mitigation programs that draws on the lessons learned from implementing the government’s crisis-era housing recovery programs.