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Portions of "NewsWatch" are reprinted with permission from "NewsWatch Today", a publication of
the Independent Community Bankers of America, and brought to you as a
part of your bank's relationship with the Arkansas Community Bankers
Association. We're pleased to provide information about current
issues affecting community banks. If you prefer not to receive
these updates please reply to this email and enter "unsubscribe" in the Subject line.
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Senate Delays
Vote Again on Foreclosure Bill
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Senators have
postponed the third floor-vote on a multi-faceted foreclosure
prevention legislation that contains ICBA-opposed measures that would
allow bankruptcy judges to modify the terms of mortgages on primary
homes in Chapter 13 proceedings. Lawmakers were moving quickly to
rewrite several parts of the bill, hoping to schedule another vote
this week.
ICBA joined 13
other banking and business associations in a letter this week asking senators to
oppose the legislative package if it retained the Title IV mortgage
bankruptcy measures. The joint letter said the measures would
exacerbate the mortgage financing industry's current problems by
significantly raising the long-term cost of home financing for all
homebuyers. "The bankruptcy code is incredibly complex," ICBA
and the other associations wrote. "Trying to amend it on the
Senate floor opens all sorts of potential problems ... that could have
long-lasting and adverse consequences for our mortgage market and
economy."
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Record Crop
Values, Farm Income Projected
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Rising crop
prices are expected to drive the value of this year's U.S. agriculture
production 17 percent above last year's $176 billion record, the U.S.
Department of Agriculture reported. Net income for America's farmers is
forecast to total $92.3 billion this year, up 4.1 percent from last
year and 51 percent above the average of $61.1 billion over the past
decade.
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Fannie Mae
Tightens Borrower Credit Standards
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Fannie Mae is
tightening its underwriting standards by requiring borrowers behind
most mortgages it purchases to have a minimum credit score of 580,
according to news reports. Fannie Mae said it would acquire loans given
to borrowers with lower credit scores in certain circumstances. The
company also stretched the period for borrowers who have undergone a
foreclosure to reestablish their credit history from four to five
years. Both Fannie Mae and Freddie Mac have been taking steps to shore
up capital in the wake of mortgage market losses, including by raising
lender fees and limiting loan purchases. View Fannie Mae Statement.
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SARs Spotting
Mortgage Fraud, FinCEN Reports
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Financial
institutions are becoming more adept at spotting and preventing
possible mortgage fraud, according to the Financial Crimes Enforcement
Network's most recent mortgage fraud study. The study, The SAR Activity Review; By the Numbers, found a 50 percent increase in the
number of Suspicious Activity Report filings in which financial
institutions intercepted suspected fraud prior to funding a mortgage. In
2006, banks and savings institutions filed 37,313 mortgage fraud SARs.
The final total for mortgage fraud SARs filed in 2007 was 52,868, an
increase of 42 percent. ICBA strongly encourages FinCEN to continue
this type of analysis and feedback.
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Another Farm
Bill Extension Possible
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The Bush administration
said it would consider accepting another short-term extension of the
farm bill if Congress and the administration have agreed on a basic
framework for a new bill by April 18. If lawmakers can't reach a broad
agreement on a new farm bill by the current deadline, the
administration is asking Congress to send a measure to extend the 2002
legislation for another year. The biggest obstacle to a new farm bill
remains how to pay for an extra $10 billion in agriculture program
spending.
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