Good Morning! Today is Monday, November 15. The Glasgow climate summit ended with an agreement by nearly 200 countries to cut their carbon emissions in half this decade. An appeals court barred President Biden’s vaccine mandate for large employers. A New York Times report revealed the US hid an airstrike that killed civilians in Syria. And in mortgage and housing news… Forbearances Drop Below 2%: Forbearance exits jumped week-over-week, with nearly 300,000 borrowers leaving their plans, Black Knight reported. Airbnb Will Majorly Impact 2022 Market: Analysts predict Airbnb will expand its inventory 25% in 2022, suggesting it will have a significant impact on the housing market next year. AEI Response: The AEI Housing Center published a response to FHFA’s proposed…
Freddie Mac and Fannie Mae completed 217,020 foreclosure prevention actions in Q2, bringing the number of homeowners the GSEs have helped during conservatorship to 6.030 million, according to the Federal Housing Finance Authority’s Foreclosure Prevention and Refinance Report. 57% of loan modifications reduced monthly payments by more than 20%, though the number of refinances began to fall in Q2. Forbearance starts dropped 32% to 6,233 in the second quarter, while third-party and foreclosure sales fell 9% to 2,281. The GSEs’ serious delinquency rate dropped from 2.48% to 1.99% by the end of Q2. The total number of loans in forbearance continues to drop from its latest peak in May 2021, though new forbearance plans fell but stayed high through Q2…
The Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury have suspended proposed rule changes for Preferred Stock Purchase Agreements (PSPAs), FHFA announced in a press release. The goal of these changes, put in place at the end of the Trump administration, was to limit Freddie Mac and Fannie Mae’s ability to back certain types of mortgages, including on second homes, multifamily homes and homes bought with higher risk loans. “This suspension will provide FHFA time to review the extent to which these requirements are redundant or inconsistent with existing FHFA standards, policies, and directives that mandate sustainable lending standards,” Acting Director Sandra L. Thompson said. FHFA will consult with Treasury on the scope of the review…
Good morning! Today is Monday, April 19. President Biden announces new sanctions on Russia over hacking and election interference. Four pharmaceutical companies on trial today in California over claims they fed the opioid crisis could help finalize multibillion-dollar settlements with state and local governments. Apple pays the music industry a penny per stream on its service, a disclosure it made as part of an effort by music-streaming services to show they are artist-friendly. And in mortgage and housing news … ANOTHER BUBBLE: The real estate investor who shorted subprime mortgages says this housing boom is in a bubble, too. FAIR HOUSING POLICY: The Biden administration has begun its efforts to roll back changes to two key fair-housing policies that were altered during the Trump administration.…
Good morning! Today is Wednesday, March 17. President Biden will hold his first news conference March 25. The Federal Aviation Administration extended the “zero-tolerance” policy for bad air travel behavior while the federal mask mandate is in place. Los Angeles Lakers star LeBron James is set to become part-owner of the Boston Red Sox. And in mortgage and housing news … BROKER WARS: The Mortgage Note reports on a consumer group launching a campaign designed to raise awareness among policymakers about the Broker Wars in an effort to put pressure on United Wholesale Mortgage over their refusal to work with brokers who do business with two competitors. MORTGAGE APPS: The Mortgage Note reports that mortgage applications for new home purchases for February fell by 9…
Good morning! Today is Friday, January 29. General Motors announced it will sell only zero-emissions vehicles by 2035. The New York Attorney General says the state’s nursing home deaths were undercounted by 50 percent. A faster-spreading South African variant of the coronavirus was detected in the U.S. And in mortgage and housing news … BIDEN IMPACT: The burning question for lenders in 2021 is: How will President Biden, who’s been around this block before, respond to today’s complex housing market that has been propped up by forbearance and historically low interest rates? DOWNPAYMENT OPTIONS: There may be an upside for the young adults who were forced to move back home with their parents during the pandemic. MORTGAGE RATES: Mortgage rates fell for the second consecutive week, inching closer…
Good morning! Today is Friday, January 15. President-elect Joe Biden is urging Congress to back a round of $1,400 per-person direct payments and asking for funding for testing and vaccine distribution. Weekly filings for jobless benefits hit the highest level since July. A NASA study reports 2020 and 2016 are the warmest years on record since 1880. And in mortgage and housing news … IPO’D: Even in the middle of an economic recession, IPOs are booming and mortgage companies don’t want to miss out. The mortgage industry at large is at a peculiar crossroads and companies and investors are jumping to cash in on a unique set of circumstances, at least in the short term. GSE NO CHANGE: The Trump Administration announced that…
The Trump Administration announced Thursday that it would not seek to pull Fannie Mae and Freddie Mac out of conservatorship before President Trump leaves office next week. Instead, the Department of Treasury and the Federal Housing Finance Agency announced amendments to their preferred stock purchase agreements that allows Fannie and Freddie to keep more of their earnings as they continue to work to leave conservatorship. “Today’s agreement that allows Fannie Mae and Freddie Mac to continue retaining earnings is a step in the right direction, but more hard work remains,” FHFA Director Mark Calabria said. “Capital at Fannie Mae and Freddie Mac protects the housing finance system and taxpayers. Retained earnings alone are insufficient to adequately capitalize the Enterprises. Until…
The Federal Housing Finance Agency announced a new proposed rule Tuesday that would require Fannie Mae and Freddie Mac to have living wills, similar to what many large financial institutions must file under federal law. Under the proposed rule, Fannie and Freddie will have to demonstrate “how core or important business lines would be maintained to ensure continued support for mortgage finance and stabilize the housing finance system, without extraordinary government support to prevent (Fannie or Freddie) from being placed in receivership, indemnify investors against losses, or fund the resolution of (Fannie or Freddie).” “The rule proposed today is an important step toward a stronger housing finance system. Requiring the Enterprises to develop living wills, helps FHFA fulfill its responsibility…
Good morning! Today is Monday, December 21. Members of Congress struck a deal on a nearly $900 billion virus relief package. A CDC advisory group recommends that the next COVID-19 vaccinations be given to older adults and front-line essential workers, like fire, EMT, food manufacturers, grocery and public transit employees, teachers, postal workers. Jupiter and Saturn will appear closer in the night sky tonight than they have in nearly 400 years. And in mortgage and housing news … MORTGAGE RATES: Mortgage rates have tumbled to a new all-time low, falling to a 2.67 percent, according to the weekly Primary Mortgage Market Survey released by Freddie Mac. GSE SAGA: Without appropriate oversight, Fannie Mae and Freddie Mac could easily repeat the mistakesthat put them in…
