Issue link: http://dsnews.uberflip.com/i/1513140
MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 December 2023 J O U R N A L By 2007, this share had declined to just 28%. As of 2021, nonbank mortgage com- panies originated 64% of conventional home purchase mortgage loans, com- pared to the 25% originated by banks. Key Findings of State Community Reinvestment Acts: Summary of State Laws include: » Some states conduct independent examinations of lending-, services-, and investment-related performance, while other states review federal CRA performance evaluations in conjunction with additional state-designated factors. In some states, performance evaluations are periodic, while other states review a financial institution's performance solely in response to an application for a merger, branch, license, or other activity. » Some states apply an affirmative lend- ing, service delivery, and investment obligation to mortgage companies, in addition to deposit-taking institutions. Most state CRAs adopted shortly after the passage of the federal CRA in 1977 applied only to banks. Several states, including Massachusetts and New York, later expanded their CRAs to cover mortgage companies. Illinois included mortgage companies when it passed its state CRA in 2021. Addition- ally, some states apply CRA obliga- tions to credit unions. » Some states collect and consider information beyond what is required under the federal CRA to evaluate lending, services, and investment performance in their state. Most states rely on existing data, such as Home Mortgage Disclosure Act (HMDA) data for mortgage lending, or federal CRA data for small businesses or small farms, to complete their evaluations. At least one state, New York, requires additional small business lending data reporting beyond what is required by the federal CRA. Additionally, some states have the authority to collect data from institutions that are not required to report federal mortgage, small busi- ness, small farm, or other data. » The most common enforcement mechanisms include limitations on mergers, acquisitions, branching activities, and licensing, but some states have adopted additional measures. For example, a financial institution's CRA performance rating may be a factor in the ability to conduct certain types of activities, such as serving as a depository for public monies. Some states permit less frequent exams after an institution receives a higher performance rating or require corrective action for a lower performance rating. None of the state CRAs reviewed explicitly provide for the ability to issue civil monetary penal- ties or structural remedies for failing to meet state CRA requirements. » State CRAs have been amended from time to time in response to changing markets. Many state CRAs were initially passed shortly after the enactment of the federal CRA in 1977. Just as the federal CRA has been revised since its passage, state CRAs have been amend- ed to cover additional types of financial institutions, collect additional data to better understand financial markets, and address other state-specific needs. GINNIE MAE PORTFOLIO NETTED $15B IN GROWTH DURING OCTOBER A ccording to a new news release from Ginnie Mae, their mort- gage-backed securities portfolio (MBS) outstanding balance grew to $2.492 trillion in October, a number that includes $33.8 billion of total MBS issuance which has led to Ginnie Mae picking up a cool $15 billion of net port- folio growth in a single month. What did all of this money go towards? October's new MBS supported the financ- ing of nearly 110,000 households, of which 53,000 were first-time buyers. Approximately 75% of the October MBS issuance reflects new mortgages that support home purchases, because refinance activity remained low due to higher interest rates. The October issuance includes $32.5 billion of Ginnie Mae II MBS and more than $1.3 billion of Ginnie Mae I MBS, including approximately $1.2 billion in loans for multifamily housing. For the 2023 calendar year to date, Ginnie Mae supported the pooling and securitization of more than 520,000 first- time homebuyer loans. For more information on monthly MBS issuance, Unpaid Principal Balance (UPB), real estate investment conduit (REMIC) monthly issuance, and global market analy- sis, visit www.ginniemae.gov. In addition, supporting Ginnie Mae's mission to promote broader access to mortgage financing, the company has announced the launch of a "social bonds" label for single-family forward mortgage-backed securities supporting its mission-oriented work and commu- nicating to investors the positive social impacts of its financing framework. The launch will help increase inves- tor awareness of the value proposition in Ginnie Mae securities, increasing oppor- tunities to attract new sources of capital in support of lenders and borrowers Ginnie Mae ultimately serves. The prospectus revisions highlight structural aspects of Ginnie Mae's programs that have a significant social impact by promoting broader access to mortgage financing for historically underserved communities. With the revision to the prospectus, investors will have the choice, along with MBS pool level disclosure data, to independently determine Ginnie Mae MBS as "social bonds," meaning the un- derlying collateral is designed to support a positive social and affordable housing outcome. The new Social Impact and Sustainability Framework outlines the characteristics of Ginnie Mae's Social Bonds and broader portfolio. FHFA RELEASES ANNUAL REPORT HIGHLIGHTING 2022 PERFORMANCE OF FHLBANKS T he Federal Housing Finance Agency (FHFA) has released its Annual Report on 2022 Federal