Top Story Lending Related

The NCUA has announced that it will co-host with the FTC a live chat on July 27 beginning at 11 a.m. ET to discuss how servicemembers can protect themselves and their families from payday, auto and student loan predatory lending.

HUD has announced that the FHA has issued guidance that makes clear the circumstances under which it will insure mortgages on properties that include Property Assessed Clean Energy (PACE) assessments. FHA will now approve purchase and refinance mortgage applications in states that treat PACE obligations as special assessments similar to property taxes. The new guidance addresses PACE programs where the PACE obligation is treated like a property tax and does not allow the full obligation to have priority or "prime" status over the FHA mortgage lien. By law, FHA cannot accept a first lien PACE structure (except for past due amounts as is the case for all tax assessments). In accordance with existing guidance, lenders will be responsible for escrowing PACE payments as they would property taxes. In addition, purchasers of homes with existing PACE obligations will be responsible for any unpaid balance of the obligation.

HUD and the Census Bureau have jointly announced the new residential construction statistics for June 2016.

• Building Permits: Privately owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,153,000, 1.5 percent above the revised May rate of 1,136,000, but 13.6 percent below the June 2015 estimate of 1,334,000. Single-family authorizations in June were at a rate of 738,000, 1.0 percent above the revised May figure of 731,000.
• Housing Starts: Privately owned housing starts in June were at a seasonally adjusted annual rate of 1,189,000, 4.8 percent above the revised May estimate of 1,135,000, 2.0 percent below the June 2015 rate of 1,213,000. Single-family housing starts in June were at a rate of 778,000, 4.4 percent above the revised May figure of 745,000. The June rate for units in buildings with five units or more was 392,000.
• Housing Completions: Privately owned housing completions in June were at a seasonally adjusted annual rate of 1,147,000, 12.3 percent above the revised May estimate of 1,021,000, 18.7 percent above the June 2015 rate of 966,000. Single-family housing completions in June were at a rate of 752,000, 3.7 percent above the revised May rate of 725,000. The June rate for units in buildings with five units or more was 386,000.

The Consumer Financial Protection Bureau has posted a notice that the FFIEC and HUD have published resources for financial institutions required to file HMDA data:

• Filing Instructions Guide for data collected in 2017
• Filing Instructions Guide for data collected in or after 2018
• a Technoloogy Preview with resources for institutions preparing their systems to file HMDA data with the CFPB
• Frequently Asked Questions about the changes in filing procedures

The Board of Governors of the Federal Reserve System published [81 FR 47006] in today's Federal Register an interim final rule amending its rules of practice and procedure [12 CFR 263] to adjust the amount of each civil monetary penalty (“CMP”) provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The increased limits include "catch up" adjustments required by the Act. The rule will be effective on August 1, 2016. Comments on the rule will be accepted through August 30, 2016.

The CFPB has posted a save the date notice for a Bureau field hearing about debt collection to be held July 28 in Sacramento. The event is open to the public but requires a reservation.

A solicitation has been posted by the Bureau for research submissions for the Second CFPB Research Conference on Consumer Finance, which will be held this winter. Suggested topics include work on: the ways consumers and households make decisions about borrowing, saving, and financial risk-taking; how various forms of credit (mortgage, student loans, credit cards, installment loans, etc.) affect household well-being; the structure and functioning of consumer financial markets; distinct and underserved populations; and relevant innovations in modeling or data. A particular area of interest for the CFPB is the dynamics of households’ balance sheets. All submissions are due in PDF format by August 26, 2016.

The Federal Reserve has released data from its May 2-6, 2016, E.2 Survey of Terms of Business Lending.

A joint press release from the Federal Reserve, OCC and FDIC has announced the final revisions to "Interagency Questions and Answers Regarding Community Reinvestment." The guidance addresses questions raised by bankers, community organizations, and others regarding the agencies' CRA regulations in the areas of:

• Availability and effectiveness of retail banking services
• Innovative or flexible lending practices
• Community development-related issues, including: (i) economic development; (ii) community development loans and activities that revitalize or stabilize underserved nonmetropolitan middle-income geographies; and (iii) community development services
• Responsiveness and innovativeness of an institution's loans, qualified investments, and community development services

The Federal Reserve Board has released June 2016 G.17 industrial production and capacity utilization data. Industrial production increased 0.6 percent in June after declining 0.3 percent in May. For the second quarter as a whole, industrial production fell at an annual rate of 1.0 percent, its third consecutive quarterly decline. Manufacturing output moved up 0.4 percent in June, a gain largely due to an increase in motor vehicle assemblies. The output of manufactured goods other than motor vehicles and parts was unchanged. The index for utilities rose 2.4 percent as a result of warmer weather than is typical for June boosting demand for air conditioning. The output of mining moved up 0.2 percent for its second consecutive small monthly increase following eight straight months of decline. At 104.1 percent of its 2012 average, total industrial production in June was 0.7 percent lower than its year-earlier level. Capacity utilization for the industrial sector increased 0.5 percentage point in June to 75.4 percent, a rate that is 4.6 percentage points below its long-run (1972–2015) average.