Top Story Lending Related

The Bureau has announced upgrades to its consumerfinance.gov site to help users quickly and easily browse the information, tools, and reports that the Bureau provides. Examples of the improvements are provided in the announcement.

The Federal Emergency Management Agency has published in this morning's Federal Register a final rule [81 FR 24033] to identify communities in Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on June 2, 2016, for noncompliance with the floodplain management requirements of the program.

FEMA has published in today's Federal Register a correction of its March 30, 2016, final rule suspending communities in Colorado, Virginia and Wisconsin from the Flood Insurance Program. See our March 30 Top Story for more information.

The Federal Housing Finance Agency (FHFA) has released its February House Price Index (HPI). U.S. house prices rose in February, up 0.4 percent on a seasonally adjusted basis from January, The previously reported 0.5 percent increase in January was revised downward to reflect a 0.4 percent increase. The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From February 2015 to February 2016, house prices were up 5.6 percent. The index levels since October 2015 have exceeded the prior peak level from March 2007. For detailed information on the monthly HPI, see the HPI FAQs. Complete historical data can be found on the HPI Data page.

The CFPB has reported that research indicates online payday loans, also known as "cash advances" or "check loans," can offer quick access to money. A CFPB report found that attempts by online lenders to debit payments from a consumer’s checking account add a steep, hidden cost to online payday loans. Half of online borrowers rack up an average of $185 in bank penalties because at least one debit attempt overdrafts or fails. Further, one third of those borrowers who get hit with a bank penalty wind up having their accounts closed involuntarily. The study also found that despite this high cost to consumers, lenders' repeated debit attempts typically fail to collect payments. The Bureau also released prepared remarks from Director Cordray on the report.

The Federal Reserve Board has issued SR Letter 16-8 to announce the implementation of new procedures for examiners to conduct off-site loan reviews for community and small regional banks. The option is offered as part of an ongoing effort to improve efficiency and provide burden reduction while maintaining quality supervision. State member banks and U.S. branches and agencies for foreign banking organizations with less than $50 billion in total assets can opt to allow Federal Reserve examiners to review loan files off-site, during both full-scope or target examinations, so long as loan documents can be sent securely and with the required information. While some banks may prefer an off-site loan review, the program is optional so that any bank can still choose an on-site review.

HUD and the Census Bureau have released the new residential construction statistics for March 2016.

• Privately owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,086,000; 7.7 percent below the revised February rate, but 4.6 percent above the March 2015 estimate. Single-family authorizations in March were at a rate of 727,000;1.2 percent below the revised February figure of 736,000.
• Privately owned housing starts in March were at a seasonally adjusted annual rate of 1,089,000; 8.8 percent below the revised February estimate of 1,194,000, but 14.2 percent above the March 2015 rate. Single-family housing starts in March were at a rate of 764,000; 9.2 percent below the revised February figure.
• Privately owned housing completions in March were at a seasonally adjusted annual rate of 1,061,000; 3.5 percent above the revised February estimate of 1,025,000 and 31.6 percent above the March 2015 rate. Single-family housing completions in March were at a rate of 734,000; 0.3 percent below the revised February rate.

The April 2016 issue of The NCUA Report has been posted, featuring the recent changes made by the Department of Defense that will extend the protections of the Military Lending Act to a broader range of closed-end and open-end credit union products.

The Department of Housing and Urban Development has announced it is charging landlords in Beloit, Kansas, with violating the Fair Housing Act after allegedly discriminating against a female tenant with disabilities by not renewing her lease, sending her a notice containing discriminatory statements about her disability, and retaliating against her for filing a previous fair housing complaint.

The Financial Stability Oversight Council (FSOC) has released a statement providing a public update on its review of potential risks to U.S. financial stability that may arise from asset management products and activities. The statement details the Council’s views regarding potential financial stability risks and next steps to respond to these potential risks. The Council’s evaluation of risks focused on: (1) liquidity and redemption; (2) leverage; (3) operational functions; (4) securities lending; and (5) resolvability and transition planning. Remarks by Treasury Secretary Lew prepared for delivery at the FSOC meeting were also released.