Ronald McCord, former Mortgage Bankers Association (MBA) president and founder of Oklahoma City-based First Mortgage Company (FMC), pleaded guilty to a slew of charges including defrauding Fannie Mae. McCord, 71, was indicted by a grand jury in June 2020, with charges including bank fraud, money laundering, and making false claims to a financial institution. McCord pleaded guilty to five of the twenty-four charges. McCord served as MBA president in 1997, at which time the position was a volunteer role. In the plea hearing, McCord admitted to defrauding Spirit Bank, Citizens State Bank, and their respective residential mortgage subsidiaries. An independent audit showed McCord had sold more than $14 million in loans “out of trust,” failing to repay when certain loans…
Good Morning! Today is Wednesday, December 1. At least three students were killed in a high school shooting in Oxford, Michigan. The CDC is planning to require international travelers to show a negative test that is less than 24 hours old. The TV host Dr. Oz will run for Senate in Pennsylvania as a Republican. And in mortgage and housing news… A New Gold Rush For Lenders?: As the pandemic continues and workers reevaluate their commitment to metropolitan life, lenders in smaller cities stand to benefit from what is being termed the “Great Resignation.” Mortgage Applications Drop: Mortgage loan application volume fell 7.2% last week, with refis down 15% due to rising interest rates, according to the MBA. Insurance Hikes…
Good Morning! Today is Monday, November 29. The new Covid-19 variant, Omicron, may be more contagious among vaccinated people but less deadly overall. Japan, Israel, and Morocco have closed their borders to foreign travelers. Mark Esper is suing the DOD for not clearing his book manuscript for publication due to sections detailing his time working under Donald Trump. And in mortgage and housing news… Build Back Better’s Implications On Housing Prices: The House version of President Biden’s “Build Back Better” plan includes about $170 billion for affordable housing and people are asking what that means. CRA Changes: As the Fed weighs making the Community Reinvestment Act race-specific, what do the data say about CRA loans? Not much. Forbearance Starts Jump: …
Good Morning! Today is Wednesday, November 17. A violent clash erupted when migrants attempted to cross the border between Poland and Belarus yesterday. The House will vote today on censuring Paul Gosar, who tweeted a video depicting violence against President Biden. LA’s Staples Center will be renamed Crypto.com Arena. And in mortgage and housing news… Double-Digit Rent Growth: Rent prices rose 10.2.% YOY in September as growth remains at record highs, according to CoreLogic’s Single-Family Rent Index. nCino Acquires SimpleNexus: Fintech nCino is expanding its mortgage market reach by acquiring SimpleNexus for $1.2 billion in stocks and cash. Homes At Auction: More than 60% of US consumers would buy a home at auction, including 75% of Millennials, a ServiceLink survey…
Good Morning! Today is Tuesday, November 9. Four SpaceX astronauts returned to Earth after 200 days in orbit. The Justice Department charged a Russian man with conducting cyberattacks and recovered $6 million in ransom. A missing girl was recovered after a motorist noticed her using an emergency hand signal that has gained attention on TikTok. And in mortgage and housing news… HPSI Stays Flat: Consumers have mixed feelings about the housing market and are slightly more pessimistic about the economy overall, especially when it comes to their personal finances. Forbearances Improve Again: The number of loans in forbearance dropped to 1 million as homeowners exited their plans, most entering modifications. Inflation Fears Climb: Inflation fears rose for the 12th consecutive…
Consumers continued to feel pessimistic about the housing market in October, reporting mixed feelings about buying and selling homes and worries over the economy overall. Fannie Mae’s Home Purchase Sentiment Index stayed relatively flat, rising only one point in October to 75.5. The index’s six components increased month-over-month (MOM) but are down 6.2 points year-over-year (YOY.) A somewhat larger group of consumers from last month said it’s a good time to buy a home (30%, +2%) or sell a home (77%, +3%), and report they expect mortgages will increase over the next 12 months. The net share of respondents who say it’s a good time to buy a home rose 3% MOM. The share of respondents who expect home prices…
Good Morning! Today is Election Day, 2021, Tuesday, November 2. Voters will elect governors in Virginia and New Jersey, and mayors in New York City, Boston, and Atlanta. Senator Joe Manchin said he would not support President Biden’s spending plan without “greater clarity” about its economic effects. World leaders at the climate summit in Scotland agreed to a deal to reverse deforestation by 2030.And in mortgage and housing news… Forbearances Drop To Lowest Rate Since March 2020: The volume of loans in forbearance dropped this week, with Fannie and Freddie seeing forborne loans dip below 1%. CRA Requirements For Nonbanks: Gov. New York expanded the state’s version of the Community Reinvestment Act to apply anti-redlining law to nonbank mortgage lenders.…
Forbearances continued to drop last week, with the total number of loans in protection down to 2.15% of servicers’ portfolio volume, according to the Mortgage Bankers Association’s (MBA) latest survey. The estimated number of homeowners in forbearance plans remains around 1.1 million. “For the first time since March 2020, the share of Fannie Mae and Freddie Mac loans in forbearance dropped below 1%. A small decline for this investor category was matched by similarly small declines for Ginnie Mae and portfolio/PLS loans,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Forbearance exits slowed at the end of October to the slowest pace since late August. With so many borrowers having reached the end of their 18-month forbearance term,…
Good Morning! Today is Thursday, October 21. U.S. unemployment claims fall to a new pandemic low of 290,000. The gunman in the Parkland school shooting pleaded guilty to 17 counts of murder. Donald Trump is launching a new social media platform, TRUTH Social. And in mortgage and housing news… Freddie Mac: Mortgage rates continued climbing, hitting 3.09% over the past week, Freddie Mac reported. “In Front Of Every Fight”: MBA President and CEO Bob Broeksmit said that “aggressive” federal regulation is back but that the MBA would fight tax hikes on mortgage servicing. Advocates Rally For “Robust” Spending: Housing stakeholders gathered at the capitol to call for the budget reconciliation package being negotiated in Congress to substantially represent housing. Runaway Demand: …
Economists from Fannie Mae’s Economic and Strategic Research (ESR) group anticipate that mortgage rates and home prices will increase in 2022, according to the group’s October 2021 Forecast commentary. The group cites inflation, tightening monetary policy, and continuing home stock shortages as drivers of higher prices in 2022. Fannie Mae’s October economic forecast predicts the 30-year fixed-rate mortgage will average 3.3% in 2022. It raised its prediction of 3.1% last month in anticipation of the Federal Reserve tapering its purchase of mortgage-backed securities, which is expected to start by the end of this year. “While we still view the supply chain disruptions and, to a lesser extent, labor market tightness as largely transitory, we now expect both to last even…
