Mortgage Roundup (12/16/20) – Deals, Waivers & GSEs

Good morning! Today is Wednesday, December 16. Congressional leaders appeared to make progress toward funding the government and sending another round of coronavirus relief in the next week. The FDA authorized the first over-the-counter, rapid home virus test. L.A. Unified Schools will not be giving F’s this school year due to Covid disruptions. 

And in mortgage and housing news …

RENTAL DEAL: The parent company of realtor.com announced it will take a bigger role in the rental market with the acquisition of Avail, a company that helps landlords across the country manage their rental properties.

2021 PREDICTIONS: Redfin released its top 10 predictions for the 2021 housing market.

GSE CONSERVATORSHIP: Shares of mortgage giants Fannie Mae and Freddie Mac plunged after the White House signaled it won’t free them from government control before the Trump administration leaves office.

ACCOUNTING WAIVER: U.S. banks are scrambling to persuade Washington policymakers to extend the Dec. 31 expiry of an accounting waiver that has allowed lenders to give struggling borrowers more leeway on their loans, several bankers and lobbyists said.

PRICE GROWTH: Have we seen unsustainable price growth in 2020?

UWM SUED: United Wholesale Mortgage is being sued by mortgage brokers in a class action case that claims UWM abruptly changed commission payments. 

LOAN LIMITS: The Federal Housing Finance Agency recently announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021.

SECOND HOMES: Desire for a second home is growing – 55.7 percent of Americans who don’t own a second home say they now want one, compared to just 46.4 percent who expressed a desire for a second home prior to the pandemic.

FLORIDA FUTURE: Central Florida’s housing market growth is projected to lead Florida in 2021.

DUE DILIGENCE: In states without real estate lawyers, the onus is on the buyer to do due diligence for a home purchase.

SUBURB BOOM: COVID-19 makes car-dependent neighborhoods more popular.

GSE ANALYSIS: The GSEs’ 2021 market caps could mean scarce market-rate capital by yearend.