Page 39 - July-August 2018 GSE Report Flip Book

FANNIE MAE AND FREDDIE MAC JJUALN. U- ARUYG. 22001188
compliance burdens, according to the agency. FHFA is accepting public comments on the proposed rule until October 12. (HousingWire, Kelsey Rameriz, 08/28/18; IMF News, Brandon Ivey and Paul Muolo, 08/28/18)
Treasury outlines the important role policymakers play in modernizing mortgage lending and servicing
In A Financial System That Creates Economic Opportunities: Nonbank Financials, Fintech, and Innovation, Treasury Secretary Steven Mnuchin and Counselor to the Secretary Craig Phillips wrote:
In the Banking Report, Treasury highlighted the steep increases in the cost to originate and service a mortgage loan as evidence of the burden of post-crisis mortgage regulation. Treasury found that new regulations, combined with the use of enforcement actions, were effectively imposing a regulatory tax on the mortgage marketplace by requiring lenders to hold additional liability reserves and add compliance personnel, if not exit certain markets altogether. In response, Treasury offered recommendations to recalibrate and clarify rules where they were unnecessarily raising the cost and restricting access to mortgage credit.
... Policymakers have an important role to play in the evolution of the mortgage lending and servicing marketplace by addressing regulatory challenges that discourage broad market participation and inhibit the adoption of beneficial technological developments. In its review of the impact of financial technology, innovation, and nonbanks on the mortgage market, Treasury has made the following findings:
• The adoption of financial technology and digital mortgage capabilities has the potential to improve the customer experience, shorten origination timelines, and deliver a more reliable, lower cost mortgage product;
• Current limitations on the acceptance of electronic mortgage promissory notes by key market participants limits the wider use and adoption of this technology, along with its attendant benefits for consumers and the marketplace;
• The mortgage production process is unnecessarily time intensive, with certain components prone to delays, which potentially could be relieved through policy changes conducive to further adoption of time- and cost-saving technology;
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