Good morning! Today is Wednesday, July 29. Amazon, Apple, Facebook and Google CEO’s will testify today before Congress, which is aiming to rein in what they view as excessive power. The Federal Reserve meets today about providing more support to the economy. Joe Biden says he will pick a running mate by the end of next week.
And in mortgage and housing news …
ROCKET IPO: Rocket Mortgage’s parent company – Rocket Companies, Inc. – announced details about its proposed IPO, including the filing of documentation with the Securities and Exchange Commission to offer 150 million shares of common stock to the public.
FANNIE MAE SELL OFF: Fannie Mae announced it is putting 18,300 reperforming loans up for sale as part of its ongoing effort to reduce the size of its mortgage portfolio.
GSE CONSERVATORSHIP: Fannie Mae and Freddie Mac have recently taken steps to transition out of government conservatorship and have extended several loan origination flexibilities.
LUXURY: The high-end market is a want market, not a need market—after weeks or months of sheltering in place during the pandemic, wish lists began to emerge.
DELINQUENCY RATE: Freddie Mac’s recently released June data showed a concerning 2.48 percent delinquency rate – which has significantly increased from 0.81 percent in the month prior.
RENT DUE: Some renters may still be protected by eviction bans. Others may not. Rent for most in the nation is due on Saturday.
OPENING A BANK: Since the Great Recession, only a handful of new banks have opened. One bank’s successes pre-Great Recession may be instructive for anyone hoping to open a bank in this economy.
I-BUYERS: iBuyers, among the first to hit the pause button in the industry, are back. More importantly, as global real estate tech strategist Mike Delprete points out, “the iBuyer business model is positioned to thrive in a world of social distancing.”
EXPENSIVE JUMBO: Federal intervention into the traditional mortgage market makes jumbo mortgages more expensive and less attractive.
LANDLORDS SEEK RENT: The national moratorium on evictions set forth by the CARES Act expired last week, but mortgage forbearance for landlords was extended in June. While landlords are able to start filing eviction notices, they won’t be able to ask people to leave for another 30 days. However, not every landlord is likely to be quick to evict.
INVESTORS: Real estate is no longer Americans’ favorite long-term investment, according to a new survey.