Politics & MoneyMortgage

UWM: Acting CFPB director Mulvaney won’t bring major change to housing

And reverse mortgages keep mortgage insurance premiums high

United Wholesale Mortgage released its 3Points video for December, recapping the most recent changing in the housing and mortgage markets.

In the video, UWM President and CEO Mat Ishbia talked about the most recent change at the Consumer Financial Protection Bureau – its new director.

After CFPB Director Richard Cordray announced his early retirement form the bureau, the CFPB erupted into chaos as two leaders showed up to the office as acting director – and no one knew who to follow.

Cordray appointed Leandra English to serve as acting director to “ensure a smooth transition.” However, Trump disagreed with ordray’s pick, or his right to choose anyone to replace himself, and nominated Mick Mulvaney, who currently serves as director of the Office of Management and Budget.

Later, a federal judge sided with Trump, handing control over to Mulvaney as the acting director until the Senate confirms a permanent CFPB director.

But Ishbia said this will not bring major change for now, and that the mortgage finance industry won’t see any major moves until a permanent director is approved by the Senate.

“Are there things they are going to change and make better? Potentially,” Ishbia said. “Will the acting director make those changes? We don’t really think so.”

In fact, he said even after the new director takes over, the changes to the CFPB won’t be significant.

“I don’t see a massive overhaul for what we know today as the CFPB and how business is done in the mortgage industry,” Ishbia concluded.

He also mentioned the Federal Housing Administration’s mortgage insurance premium cuts, confirming that they will not be reinstated, and explained one of the key reasons behind this decision.

Despite some previous thought that the FHA may reinstate the suspended cut to its mortgage insurance premiums, the U.S. Department of Housing and Urban Development announced last month that premiums will not be cut.

Ishbia explained this decision is due to a drag from reverse mortgages.

“Really the reverse mortgages have been the biggest hit for it,” he said. “The forward mortgages have done pretty well, but the reverses hit it and now it’s at 2.09.”

He also touched on conforming loan limits, which the FHA increased Tuesday. Watch the full video below.

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