The Structured Finance Association (SFA) today released the following statement commemorating Juneteenth.

CoreLogic in its latest Loan Performance Insights Report shows the country’s mortgage delinquency rate is moving closer to pre-pandemic levels as early-stage delinquencies show signs of improvement. This past March, 4.9% of all mortgages in the U.S. were in some stage of delinquency or foreclosure.

This week’s research corner looks at the May’s job report and how improving labor market conditions support securitization. While jobs growth continues to be positive, which is supportive of consumer credit, the report also reflects a labor market still dealing with the lasting effects of the pandemic.

Black women in America face several hurdles to success, particularly regarding educational and professional opportunities, with the white-Black wage gap for female professionals at $12,700 in 2019. These inequities also mean lost productivity and lost economic growth.

A record-low number of U.S. consumers believe now is a good time to buy a home, with surging prices and a depleting supply of houses on the market being deterring factors. Fannie Mae’s Home Purchase Sentiment Index declined from 47% in April to 35% in May.

Lobbying for and against using the Congressional Review Act (CRA) to repeal the OCC’s October 2020 true lender rule has intensified ahead of a crucial vote in the House of Representatives expected as early as the week of June 21. Advocates have held briefings on Capitol Hill to educate House members, but opponents, including SFA, have been more vocal in the House following a 52-47 Senate vote to approve Senate Joint Resolution 15, which invoked the CRA to overturn the true lender rule.

On June 4, during an online forum on climate related finance, the Federal Reserve (Fed) Chairman Jerome Powell stated that climate change is not a main factor the central bank considers when it comes to establishing monetary policy. Instead, Powell believes the role falls to the private sector and elected officials. In recent months, the Fed has taken a more active role in climate change, with the creation of two internal committees aimed at exploring the issue.

Last month, the Senate voted to rescind the "true lender" rule under the Congressional Review Act (CRA). The legislation has since gone to the House which is expected to block the rule as well.

While CEOs agreed unanimously on the need for federal LIBOR legislation, House and Senate lawmakers demonstrated they remain sharply divided on what role financial institutions and their regulators should play in confronting environmental and social challenges.

CLO re-financings and resets are expected to surge by year end as loan markets transition out of London Inter Bank Offered Rate (LIBOR). U.S. regulators have advised banks to cease originating LIBOR-based loans by December.