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47 » VISIT US ONLINE @ DSNEWS.COM HOUSE PASSES FOUR FINANCIAL SERVICES BILLS e House of Representatives recently passed not one, but four new bipartisan bills affecting the financial services industry. e Portfolio Lending and Mortgage Access Act (H.R. 2226), sponsored by Representative Andy Barr (R-Kentucky), will modify the Truth in Lending Act to "allow certain mortgage loans that are originated and retained in portfolio by an insured depository institution or an insured credit union with less than $10 billion in total consolidated assets be considered as qualified mortgages." e bill passed by a voice vote. e Comprehensive Regulatory Review Act (H.R. 4607) was sponsored by Rep. Barry Loudermilk (R-Georgia). It amends the Economic Growth and Regulatory Paperwork Reduction Act of 1996 to include both the Consumer Financial Protection Bureau and the National Credit Union Administration, as well as requiring reviews of the affected agencies to be held every seven years, up from the current standard of every 10. e bill passed the House by a vote of 264-143. Sponsored by Rep. Randy Hultgren (R-Illinois), the Community Bank Reporting Relief Act (H.R. 4725) amends the Federal Deposit Insurance Act so as to "direct federal banking agencies to issue regulations that allow a reduced reporting requirement for depository institutions with $5 billion in consolidated assets or less, and that meet certain other criteria when making the first and third report of condition for a year." H.R. 4725 passed by a voice vote. Finally, H.R. 4768, the Strategy for Combating the Financing of Transnational Criminal Organizations Act, "requires the President, through the Secretary of the Treasury, to develop a national strategy to combat the financial networks of transnational criminal organizations (TCOs) not later than one year after the enactment of this Act and every two years thereafter". e bill was sponsored by Rep. David Kustoff (R-Tennessee) and passed by a voice vote. Credit Union National Association (CUNA) President and CEO Jim Nussle said in a statement, "Both of the bills are common-sense, pro-consumer pieces of legislation that will facilitate more efficient regulations and increased access to mortgage credit." WAGES AND HOME AFFORDABILITY e rise in jobs and wages reported by the Bureau of Labor statistics in late January is affecting the housing market in good ways and bad, according to the latest Real House Price Index data released by First American. e index measures the price changes of single-family housing across the country adjusted for the impact of income and interest rate changes on consumer house- buying power (how much one can buy based on changes in income and interest rates) over time and across the U.S. at a national, state, and city level. e data, which was released for December 2017 showed that homes are 5 percent more expensive than they were a year ago. Real house prices on the index increased 0.4 percent in December 2017 month over month. e index indicated that house buying power of consumers increased 5.6 percent on a year-over-year basis and by 0.1 percent from November 2017 to December 2017. "Household income varies substantially by the housing market, so comparing house- buying power with house prices by the market can provide perspective on housing affordability," said Mark Fleming, Chief Economist at First American. "Earlier this month, the Bureau of Labor Statistics reported that average hourly earnings increased in January by 2.9 percent compared with a year ago. Rising wages mean homebuyers can borrow more." However, the rising wages also raised concerns that inflation would rise and the Federal Reserve would increase rates at a faster pace than previously expected. "Consequently, the 30-year, fixed-rate mortgage rate increased to 4.4 percent last week," said Fleming. "So, on the one hand, rising mortgage rates reduce the affordability of housing, as the cost of borrowing increases. But, on the other hand, rates are increasing because wages are rising faster than expected. Wage growth simultaneously helped and hurt housing affordability." e data indicated that house prices still exceed house buying power in hot markets like San Jose, San Francisco, New York, and Los Angeles. But metros like Washington, D.C., Boston, and Denver are more affordable than may believe with house prices in the $400,000 range compared to a median range of $1.2 million in San Jose or $1 million in San Francisco. "Average incomes are more than 20 percent higher today than in 2006 (according to the Census Bureau) and interest rates 2.3 percent lower."

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