Trending Thursday is a roundup of the stories shaping the week and what’s yet to come through the weekend — also taking into account social media reaction. Think of it as a midweek Monday Morning Cup of Coffee, but with extra caffeine.
The government earned its paycheck this week.
From the Consumer Financial Protection Bureau to the U.S. Supreme Court, the government announced several new game-changing initiatives for housing finance.
The bureau finalized its proposal to amend the Know Before you Owe mortgage disclosure rule, which proposes to move the rule’s effective date to Oct. 3, 2015.
CFPB Director Richard Cordray first mentioned these plans in a public comment on June 17 saying:
We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks.
We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.
The Bureau is issuing the proposal to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until Aug. 15 at the earliest.
The proposal will be open for public comment until July 7.
Then on Wall Street, big investment banks are facing their toughest test yet in the current 2015 Shared National Credit review, months after regulators warned the banks about the quality of their U.S. leveraged loans, an article in Reuters said.
Regulators met with banks earlier this year after monthly monitoring started in 2014 revealed that several deals that banks claimed were in "good standing" were riskier than recorded, four people with knowledge of the discussions said.
Although the regulators' discovery that the quality of loans that banks were arranging was not as good as they claimed did not prompt regulatory action other than requests to improve, it raised the stakes for this year's SNC review, which is currently under way.
The Supreme Court finally ruled in a contentious and qualified opinion that the legal doctrine of “disparate impact” is cognizable under the Fair Housing Act.
The 5-4 decision holds that there is a disparate impact claim under the FHA as a matter of statutory interpretation.
The majority opinion, which can be read here and which was written by Justice Anthony Kennedy, strongly cautions that remedial orders in disparate impact cases that impose racial targets or quotas could be unconstitutional.
Here’s twitter reaction from the industry
@BrenaSwansonHW Any delay is worth it...but the real need is delayed enforcement while the industry gets used to implementation— John H. P. Hudson (@jhphudson) June 24, 2015
@BrenaSwansonHW Not sure, just 2 days from Oct 1 to Oct 3. It will take time for everyone to know and understand the new changes coming.— Shannon Slater (@ShannonSlater7) June 24, 2015
Meanwhile, the National Association of Real Estate Editors conference going on in Miami, is also trending: