Three Things To Ponder In the Week Ahead

June 12, 2017 at 8:19 am Leave a comment

Here are three things you should know as you snap back from reality following a sunny and dry summer weekend;

  • The Washington Post is reporting that Fannie Mae will begin raising its maximum debt to income ratio from 45 percent to 50 percent, beginning July 29, 2017. This is of course big news for those of you who provide mortgages because it expands the pool of member mortgages that can be sold to the secondary market. Also, remember that under the Dodd-Frank Act any mortgage that qualifies for sale to either Fannie Mae or Freddy Mac is a qualified mortgage. This is a big deal because without this, under the qualified mortgage requirements, the debt to income ratio cannot exceed 43 percent per the CFPB.
  • If all goes as expected, the Federal Reserve will once again nudge interest rates higher when its policy making committee meets later this week. Personally, I am really looking forward to Federal Reserve’s Chair Janet Yellen’s press conference following the festivities. The economy continues to send out a string of mixed signals and it will be interesting to see how much she hedges her bets when it comes to the possibility of future rate hikes later in the year.
  • The Wall Street Journal is reporting that the Treasury Department may release as early as today, a 150 page blue print for Regulatory Relief. Among the executive orders signed in the early days of the Trump Administration, was one requiring that the Treasury Department report on potential areas of regulatory reform. While the report has no legally binding impact, it will provide an indication about the top regulatory relief priorities of the administration. Incidentally, the report will not call for the elimination of the CFPB’s single-director structure, but will instead propose that the position be answerable to the president. If it comes out today, I will of course be skimming it as I watch game 6 of the NBA finals, to tell you what is in there about credit unions tomorrow morning. I hope the anticipation doesn’t keep you awake tonight.

On that note enjoy your day!

Entry filed under: Economy, Mortgage Lending, Regulatory. Tags: , , .

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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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