Morning Roundup (9/27/2021)– D.C.’s Debt-Ceiling Debate Could Impact Mortgage Rates, LIFT Legislation Proposes 20-Year-Fixed-Rate

Good Morning! Today is Monday, September 27. Government funding is set to expire this week as Democrats push two sweeping legislative packages. States are beginning to roll out booster shots to at-risk Americans. China traded two detained Canadian citizens to bring home a Huawei executive accused of stealing trade secrets. And in mortgage and housing news… What Does Debt-Limit Mean For Mortgage Rates?: Mortgage rates could be impacted by Washington D.C.’s debate over raising the debt ceiling. “LIFT”: Legislation aimed at first-time homebuyers proposes creating a 20-year-fixed-rate mortgage program through Ginnie Mae. FHFA Loan Mods:Fannie Mae and Freddie Mac completed 217,020 foreclosure prevention actions in the second quarter, with 47% of loan modifications lowering monthly payments by more than 20%.…

FHFA: 47% Of Modified Loans Got Lower Monthly Payments

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…

LIFT Act Proposes 20-Year-Fixed-Rate Mortgages For First-Time Buyers

New legislation introduced in the Senate, known as the “Low-income First Time Homebuyer (LIFT) Act,” proposes creating a new 20-year-fixed-rate mortgage program through Ginnie Mae, subsidized by taxpayers. First-time, first-generation homebuyers with an income equal to or less than 120% of the area median income would qualify. Ginnie Mae, along with the Department of the Treasury, would subsidize the interest rate and origination fees for these 20-year mortgages. The result would be a monthly bill in line with a new 30-year FHA-insured mortgage. The bill is sponsored by Sens. Mark Warner (D-VA), Tim Kaine (D-VA), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), and Jon Ossoff (D-GA). All except Sen. Kaine are members of the Senate Committee on Banking, Housing, and…

Morning Roundup (9/22/2021)– Loan Applications, Housing Starts Up

Good Morning! Today is Wednesday, September 22. The House passed a bill to keep the government open and prevent a debt default, but Senate Republicans will likely block it. The Taliban asked to participate in the U.N. General Assembly this week to gain international representation. The DOJ and six states are challenging American Airline’s partnership with JetBlue, alleging it violates anti-trust laws. And in mortgage and housing news… Mortgage Loan Apps Up: Mortgage loan application volume rose 4.9% last week, the MBA weekly survey found. Anthony Casa Abuse: The case of Anthony Casa, the AIME Chair who threatened and sexually harassed a competitor’s wife last year, perfectly demonstrates the difficulty of holding individuals accountable, Christine Lenzo writes. August Housing Starts: …

Morning Roundup (9/21/2021)– August New Home Purchases Down, Real-Estate Commissions Under Investigation

Good Morning! Today is Tuesday, September 21. The U.S. is easing travel bans, but will require foreign nationals to show proof of vaccination before entering the country. The Biden administration is raising the cap on refugee admissions to 125,000. A doctor who publicly admitted to performing an abortion after six weeks is being sued, the first case filed under Texas’ controversial abortion law. And in mortgage and housing news… New Home Purchases Down: MBA’s Builder Application Survey data for August 2021 shows mortgage applications for new home purchases increased from July but fell year-over-year. Commissions Under Investigation: Home sale commissions are under investigation by the Biden administration, which has asked the Federal Trade Commission to adopt rules to address any…

Morning Roundup (9/20/2021)– Home Sales Down, Consumer Sentiment Steadies

Good Morning! Today is Monday, September 19. France recalled its ambassadors from Britain and the U.S. in protest of their secret negotiations with Australia. Natural gas prices are surging, prompting fears about winter shortages. The Biden administration began deporting thousands of Haitians awaiting immigration processing in Texas. And in mortgage and housing news… Will Fed Meeting Affect Interest Rates?: The FOMC is meeting September 21 and 22 to discuss next steps on monetary policy. It probably won’t affect interest rates. Home Sales Down: RE/MAX’s August Annual Housing Report suggests that while the market may still be hot, the busiest months of 2021 may be behind us. Consumer Sentiment Up: Consumer sentiment steadied in September after plunging to its lowest level…

Morning Roundup (9/17/2021)– Rent Growth Overtakes Home Prices, Home Sales Down

Good Morning! Today is Friday, September 17. Elizabeth Warren sent letters to 12 regional Fed presidents asking them to ban ownership of individual stocks among top officials at their banks. The World Bank canceled their “Doing Business” report after an investigation found that management tried to alter data. The Justice Department is fighting against a settlement that would prevent citizens from suing the Sackler family. And in mortgage and housing news… No Bias in Mortgage Biz?: Researchers from the American Enterprise Institute Housing Institute claim studies alleging racial bias in mortgage ignore outcomes that undermine their arguments. Rent Growth Tops Home Prices: Rent growth overtook home price growth in August, a Realtor.com report found. Sales Down In August: Redfin reported…

Morning Roundup (9/16/2021)- Interest Rates Flat, Warren Calls For Break-Up Of Wells Fargo

Good Morning! Today is Thursday, September 16. The FDA found that an additional shot of Pfizer boosts immune response, but the typical two-shot regimen is still effective. The U.S., Britain, and Australia are teaming up to launch nuclear-powered submarines to patrol the South China Sea. Olympic gymnasts abused by Larry Nasser blamed the F.BI., USA Gymnastics, and the U.S. Olympic & Paralympic Committee for not responding to accusations in 2015. And in mortgage and housing news… Interest Rates Flat Again: Freddie Mac’s PMMS showed interest rates barely moved for another week, with 30-year fixed-rates averaging 2.86%. “Middlemen”: Mat Ishbia says UWM’s in-house appraisal program will speed things up by removing AMCs, which needlessly hinder closing times. Non-banks Non-primes Down: Fitch…

Morning Roundup (9/15/2021)- Purchase Applications Bounce Back, PSPA Provisions Suspended

Good Morning! Today is Wednesday, September 15. Californians voted not to recall Gov. Gavin Newsom. Senate Democrats proposed a compromise voting rights bill that includes voter ID requirements. Facebook documents reportedly show Instagram is harmful to teenage girls. North Korea violated U.N. resolutions by testing two ballistic missiles. And in mortgage and housing news… Purchase Applications Up: MBA’s weekly survey showed mortgage applications bouncing back from last week’s low, driven by purchase applications. Debt Burdens: More than half of non-homeowners say their student debt delayed them from buying a home, a NAR poll found. PSPA Provisions Suspended: FHFA and the Department of the Treasury suspended certain provisions from the Preferred Stock Purchase Agreements, FHFA announced in a press release. Delinquencies…

FHFA Suspends “High Risk” Provision on Fannie, Freddie

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…