Banking Troubles Slow Down Rate Hikes

By PATRICK LAVERY The result of this week’s two-day Federal Open Market Committee meeting was not nothing, but neither was it as aggressive a decision as officials at the Federal Reserve might have liked to make. Once again, the target range for the federal funds rate was raised one-quarter of a percentage point, bringing them up to 4.75% to 5%. What kind of news that turns out to be for the housing market remains to be seen, but it doesn’t stray too much from what several industry experts told The Mortgage Note last week. In fact, the 25-basis point hike was exactly what was predicted in TMN’s interview with Nadia Evangelou, senior economist and director of real estate research for…

Focused On Housing Crisis, HUD Unveils 2024 Fiscal Year Proposed Budget

By SCOTT KIMBLER Leaders at the U.S. Department of Housing and Urban Development have unveiled their proposed budget for FY 2024 and say funds will be directed at solving the nation’s housing crisis. Secretary Marcia Fudge said in a statement that the proposed budget will help ensure every American has access to housing. “The budget invests in Americans at every station in life – from those seeking to purchase a home to those who receive HUD rental assistance – and will ensure families across the country can live in communities that are safe, affordable, and resilient,” Fudge said. HUD Deputy Secretary Adrianne Todman said during a press call that the budget reflects the Biden administration’s values and provides a blueprint…

It’s Their Move: What Will The Feds Do About Interest Rates?

By PATRICK LAVERY Speculation about what actions leaders at the Federal Reserve will take at their meeting starting Tuesday has been building for weeks, and opinions over the right course of action are varied. Should they stay the course, steadily raising interest rates to try to continue to curb inflation? Should they be more aggressive? Or should they pull back, letting the United States slide into a recession? These questions have been swirling for months but the sudden collapse of Silicon Valley Bank and New York-based Signature Bank changed the dynamics of the conversations seemingly overnight. Nadia Evangelou, senior economist and director of real estate research for the National Association of Realtors, said prior to the bank collapses, she could…

Rate Hikes Up In The Air Thanks To New Economic Data

Mixed economic indicators released this week may stall the Federal Reserve’s plans for another round of aggressive rate hikes. Retail sales fell 0.4% in February as consumers strained under high inflation, Commerce Department data released Wednesday showed. Spending fell in eight of the thirteen groups analyzed, with furniture and department stores seeing the biggest dips. Bar and restaurants saw sales fall by 2.2%, the most in more than a year. But a surprise decline in producer prices provided a glimmer of hope that inflation may be cooling. Wholesale prices were down 0.1%, upending the Dow Jones prediction of a 0.3% increase. The index still increased YOY, but by less than expected. Both of these reports come just a day after…

Flipping Taxes, State Requirements, Regulations Important Issues To AAPL

By KIMBERLEY HAAS Flipping taxes, state requirements for licenses, and regulations specific to the repayment of extended loans are being discussed by leaders at an advocacy group representing private lenders. The American Association of Private Lenders was formed in 2009 and is a national organization representing the private real estate and peer-to-peer lending industry. Members include private money lenders, mortgage fund managers, brokers, and service providers, according to their website. The organization has about 1,000 paying members and distributes educational materials to about 8,000 subscribers. Chairman Eddie Wilson sat down recently with The Mortgage Note to talk about their public policy concerns. Leaders at the AAPL spoke out last year when California lawmakers proposed a bill to tax nearly all…

Officials Try To Reassure Depositors After Closures Of Silicon Valley Bank, Signature Bank

By KIMBERLEY HAAS The administration worked to assure consumers that the banking system was safe on Monday following the sudden collapse of two financial institutions. Officials at the Federal Deposit Insurance Corporation announced on Friday that Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation. It was the biggest bank failure since Washington Mutual in 2008. All insured deposits were transferred to the newly-created Deposit Insurance National Bank of Santa Clara. Silicon Valley Bank had 17 branches in California and Massachusetts. As of December 31, 2022, it held approximately $209 billion in total assets and about $175.4 billion in total deposits, according to officials. On Sunday, FDIC officials announced a similar fate for New York-based…

Rate Hikes Happening As Spring Homebuying Season Starts

By PATRICK LAVERY Interest rates are rising as the spring homebuying season starts in many parts of the country. Federal Reserve Chair Jerome Powell indicated in his testimony before U.S. lawmakers this week that although the central bank’s policymakers have yet to decide how large their next rate hike will be, “the ultimate level of interest rates is likely to be higher than previously anticipated” based on the latest economic data. They will be meeting on March 21 and 22. “As I have mentioned in my testimony, the data we have seen so far this year suggests that the ultimate level of rates will need to be higher. We still have some more data to come in between now and…

Justice Department Secures $9 Million In Redlining Agreement

By KIMBERLEY HAAS Officials at the U.S. Department of Justice announced on Tuesday that they reached a $9 million agreement with an Ohio-based bank to resolve redlining allegations. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities because of their race, color, or national origin. It is alleged that from at least 2015 to 2021, Park National Bank, headquartered in Newark, Ohio, engaged in the pattern or practice of lending discrimination in the Columbus metropolitan area. The bank’s branches and mortgage lenders were concentrated in majority-white neighborhoods, and company leaders failed to take any meaningful measures to compensate for its lack of physical presence in majority-Black and Hispanic communities, according to…

Lender Targeting Military Families Shut Down By Consumer Financial Protection Bureau

By KIMBERLEY HAAS Officials at the Consumer Financial Protection Bureau are taking action against a California-based mortgage lender that allegedly sent misleading advertisements to military families. According to a press release, RMK Financial Corporation falsely represented that the company was affiliated with the Department of Veterans Affairs and the Federal Housing Administration. RMK Financial does business as Majestic Home Loan and is licensed as a mortgage broker or lender in at least 29 states. Officials say that although the company originated loans guaranteed by the VA and mortgages insured by the FHA, they are not affiliated with these agencies. Officials warned RMK about misleading consumers in 2015 but say the company engaged in a series of repeat offenses, leading to…

Administration: Buyers Will Save Money On Mortgage Payments Through Premium Reduction

By KIMBERLEY HAAS The Biden administration has announced a reduction on mortgage insurance premiums in a move they say could benefit an estimated 850,000 borrowers over the coming year. New borrowers who take out loans insured by the Federal Housing Administration will see the effects of the reduced premiums, according to a press release. The premiums will be reduced from 0.85% to 0.55% for most homebuyers, which could mean an estimated savings of $678 million for American families by the end of 2023, according to officials. Vice President Kamala Harris and Department of Housing and Urban Development Secretary Marcia Fudge made the announcement in Bowie, Md., on Wednesday. White House officials said the average homebuyer in Prince George’s County –…