Mortgage Roundup (11/18/20) – Caps, Wars & The Fed

Good morning! Today is Wednesday, November 18. The FDA granted emergency approval to the first coronavirus test that delivers rapid results at home. Retail sales inched up with the holiday season approaching. Amazon launched an online pharmacy business. Oreo plans to release gluten-free cookies in 2021. 

And in mortgage and housing news …

MULTIFAMILY LOAN PURCHASE CAPS: The 2021 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $140 billion – or $70 billion for each Fannie and Freddie.

BIDDING WARS: Homebuyers across the nation still faced bidding wars in October.

FED NOMINATION STALLED: GOP senators didn’t secure enough votes to move forward with Judy Shelton, the Trump Federal Reserve Board nominee and outspoken central-bank critic

TRUMP BANK WATCHDOG: Trump is expected to nominate an acting Comptroller of the Currency, potentially complicating any Biden plans to impose tougher banking regulations.

COMMERCIAL REAL ESTATE: Here’s how bad commercial real-estate pain could get for banks and other lenders.

HOUSING BOOM DEBT: Americans’ mortgage debt soared to a record $10 trillion.

BIG BANG: FHFA reports it “will finalize the regulatory capital framework for the Enterprises in early FY 2021.” The government FY 2021 year started October 1, 2020. Once the capital rule is finalized, the next step is to review the submitted capital restoration plans put together by Fannie and Freddie with the help of their financial advisors JPMorgan and Morgan Stanley.

FINTECH LEADERSHIP: Fintech companies are working to elevate minority leaders as their users diversify.

RISKY MORTGAGE: Subprime mortgages are less risky than they used to be.

FOREIGN INVESTORS: South Korean investors are emerging as some of the most-aggressive buyers of U.S. commercial real estate during the Covid-19 period

GSE CAREER LESSONS: Why a portfolio manager just left an 11-year career at Fannie Mae.

ANTI-COMPETITION ALLEGATIONS: In the company’s IPO filing, Airbnb said Google had disadvantaged its business by denying the vacation rental platform internet traffic.