Top Story Lending Related

The Consumer Financial Protection Bureau has released its November 2017 complaint snapshot, which highlights consumer complaints about financial services such as debt settlement, check cashing, money orders, and credit repair. The report shows that consumer complaints about these types of financial services generally revolve around issues of fraud or problems with reliable customer service. This month’s report also highlights trends seen in complaints coming from Oklahoma.

The Board of Governors has released the minutes of its discount rate meetings for October 11 and October 31, 2016.

The Federal Housing Finance Authority (FHFA) has reported that interest rates on conventional purchase-money mortgages were nearly flat from September to October, 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 3.62 percent for loans closed in late October, up 1 basis point.
• The average interest rate on all mortgage loans was 3.60 percent, unchanged.
• The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.76 percent, up 3 basis points.
• The effective interest rate on all mortgage loans was 3.72 percent in October, down 1 basis point. 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 $312,700 in October, up $9,800.

The Consumer Financial Protection Bureau's Compliance Bulletin 2016-03, released on November 28, provides insight into the Bureau's expectations with regard to incentive compensation programs. The Bulletin restates guidance previously issued and focuses on examples from the CFPB's supervisory and enforcement experience in which incentives have proven detrimental to consumers. The guidance emphasizes the need for a compliance management system that is adjusted to the risk, nature and significance of an institution's incentive programs.

• Bureau Press Release
• UPDATE: The Bureau published this Compliance Bulletin in the Federal Register at 82 FR 5541 on 1/18/2017

The Federal Housing Finance Agency (FHFA) has announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase. In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000. This will be the first increase in the baseline loan limit since 2006. In higher-cost areas, higher loan limits will be in effect.

The FDIC has released a list of 24 administrative enforcement actions taken against banks and individuals in October 2016. The actions included two consent orders, seven removal and prohibition orders, six Section 19 orders, four civil money penalties, and five terminations of consent orders and cease and desist orders. There was an order of prohibition from further participation and an order to pay a civil money penalty of $125,000 to a former institution-affiliated party of Pacific Valley Bank, Salinas, California. There were also orders to pay civil money penalties for violations of the Flood Act issued to Bank of Kampsville, Kampsville, Illinois ($21,819), and to TSB Bank, Lomira, Wisconsin ($7,100).

HUD and the Census Bureau have released the October 2016 residential sales report data. Sales of new single-family houses were at a seasonally adjusted annual rate of 563,000, 1.9 percent below the revised September rate, but 17.8 percent above the October 2015 estimate. The median sales price of new houses sold in October 2016 was $304,500 and the average sales price was $354,900. The seasonally adjusted estimate of new houses for sale at the end of October was 246,000, which represents a supply of 5.2 months at the current sales rate.

The Federal Reserve Board and the Consumer Financial Protection Bureau have announced they have issued final rules detailing the method that will be used to adjust the thresholds for exempting certain consumer credit and lease transactions from the Truth in Lending Act and Consumer Leasing Act. The final rules also apply the calculation method to the thresholds for exempt credit and lease transactions for 2017. The thresholds will remain at $54,600 based on the CPI-W in effect on June 1, 2016. The thresholds last changed on January 1, 2015. The amendments made by the final rules, which will be effective January 1, 2017, have been posted to the BankersOnline Regulations pages for Regulations M and Z.

• Regulation M final rule, published 11/30/16 at 81 FR 86256
• Regulation Z final rule, published 11/30/16 at 81 FR 86260

The Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) have announced they have issued a final rule detailing the method that will be used to make annual inflation adjustments to the threshold for exempting small loans from special appraisal requirements. The final rule also applies the calculation method to the exemption threshold for 2017. The threshold will remain at $25,500, based on the CPI-W in effect on June 1, 2016. The final rule will be effective January 1, 2017.

UPDATE: Published at 81 FR 86250, 11/30/16

The FHFA has announced that the 2017 multifamily lending caps for Fannie Mae and Freddie Mac (the Enterprises) will remain at the same level they were for 2016. This means that each Enterprise will be subject to a cap of $36.5 billion of multifamily purchase volume next year. The caps are based on projections of the overall size of the 2017 multifamily finance market, which FHFA expects to be roughly the same as it was in 2016.