NY Moves Closer to Clarifying Mortgage Consummation

June 7, 2016 at 9:51 am 2 comments

New York is on the verge of clarifying that a mortgage is consummated at closing. The Senate passed legislation (S.7183/Savino) A9746/Richardson) that would clarify that, for purposes of complying with the notice requirements of RESPA and TILA, a mortgage loan is consummated “when the applicant for the mortgage loan executes the promissory note.”  This bill eliminates confusion about the timing of final mortgage disclosures that must be received at least three days before a loan is “consummated.”

We now have to wait for the bill to be sent to the Governor.


If Jamie Dimon is Right, Are CU’S Over Extended?

I took a couple of days off last week and one bit of news I wanted to bring to your attention was JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon’s prediction on Thursday that the auto lending industry is “a little stressed” and that “someone is going to get hurt.”

This prediction came the day before first quarter results released by NCUA  reported that the industry has been buoyed by continued strong auto lending.  New auto loans jumped 15.4% to $103.0 billion and that used auto loans rose 13.2% to $166.8 billion.

Fed Signals Caution on Rate Hikes

I write fewer and fewer blogs on Fed pronouncements because I’ve come to realize that the more Fed officials say, the less value it has for those of you whose livelihood is impacted by interest rates. Given the continued economic uncertainty, I can easily find speeches which suggest so many possible permutations on the state of the economy that it soon becomes clear that  the Fed lacks a clear idea of what the economy is doing or where it is headed.  I agree with President Truman who said: “Give me a one-handed economist! All my economics say, ”On the one hand? On the other.”

In a speech yesterday  previewing her views on the economy heading into a meeting of the interest rate setting Open Market Committee, Chairman Yellen continued to be cautiously optimistic about the economy, but too uncertain over its future direction to be in favor of imminently raising rates.

In a slightly less sanguine speech on Friday, Fed Governor Lael Brainard explained: “Prudent risk-management would suggest the risks from waiting until the totality of the data provides greater confidence in a rebound in domestic activity, and there is greater certainty regarding the “Brexit” vote, seem lower than the risks associated with moving ahead of these developments”

Interestingly, both officials touched on an issue that has increasingly vexed economists and troubled policymakers: Why hasn’t productivity increased enough to put upward pressure on wages? Over the six years from the end of 2009 to the end of 2015, productivity grew only a little over 1/2 percent per year, compared with average growth of 2-1/4 percent over the 50 years prior to the Great Recession.

“The reasons for such a dramatic slowing in productivity growth are not clear. Possible explanations include the fading of a one-time boost to productivity from information technology in the late 1990s and early 2000s; the reduced movement of resources from the least productive to the most productive firms, including new businesses, perhaps due to greater financial constraints for new and small businesses; and a delay between the introduction of new technologies, such as robotics, genetic sequencing, and artificial intelligence, and their effect on new production processes and products.” Brainard said.


Entry filed under: Economy, Mortgage Lending, New York State. Tags: , , .

Credit Unions Keep Their PAL State Deposit Bill on Senate Banks Agenda

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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