Morning Roundup (1/5/2022)– UWM Under Fire, Loan Applications Down

Good Morning! Today is Wednesday, January 5. A snowstorm in Virginia left hundreds of drivers stranded for more than 24 hours. Chicago canceled school today amid a clash with teachers about remote schooling during the Omicron surge. Walmart and Kroger are raising prices for BinaxNOW at-home Covid tests after a White House deal to sell them at cost expired. And in mortgage and housing news… UWM Under Fire: United Wholesale Mortgage is under scrutiny from both state and county health officials in the wake of complaints about the company’s handling of Covid. Loan Applications Down: Mortgage loan application volume dropped 2.7% from the week ending December 31, with refis down 2% as interest rates reached their highest point since April…

Morning Roundup (1/4/2022)– Americans Moving, Alanna McCargo Sworn In

Good Morning! Today is Tuesday, January 4. Apple became the first U.S. company to reach $3 trillion in market value. Chuck Schumer threatened to change Senate filibuster rules if Republicans did not allow a vote on voting rights measures. Elizabeth Holmes was found guilty on four counts of fraud related to her failed company, Theranos. And in mortgage and housing news… Bond Market Rally In 2022?: Could a drop in Chinese interest rates spark a bond rally in the US? Some companies think so. Americans On The Move: Vermont, South Dakota, South Carolina, and Florida were the top states to move to in 2021, with most movers saying they chose their new home based on proximity to family, according to…

Alanna McCargo Sworn In As Ginnie Mae President

Alanna McCargo has officially been sworn in as the 18th president of Ginnie Mae, becoming the first Senate-confirmed president in five years and the first woman to hold the position. The position has remained empty since 2017 when Obama-appointed president Toed Tozer stepped down. The interim presidents who followed him, Michael Bright and Maren Kasper, both stepped down to take other positions in the private sector. McCargo was nominated in September of 2021 and confirmed by the Senate in December 2021. “It is an honor to lead Ginnie Mae through its next phase of transformation, ensuring our MBS remains a secure, nimble, and reliable vehicle to support the U.S. mortgage market and continues to make affordable homeownership and rental housing…

MBA: Forbearances Fell To 1.67% In November

The total number of loans in forbearance fell from 2.06% of servicers’ portfolio volume to 1.67% in November, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. MBA estimates 835,000 homeowners are currently in forbearance plans. Independent mortgage banks saw a 0.34% decline from 2.28% to 1.94%, while depositories saw a 0.5% drop from 2.02% to 1.52%. The share of forborne Fannie and Freddie loans fell to 0.76%, down by 16 basis points, while Ginnie Mae loans fell to 2.10%, down 42 basis points. PLS and portfolio loans in forbearance dropped by 106 basis points to 3.94%. “The share of loans in forbearance in November declined – albeit at a slower pace than October – as borrowers continued to…

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…

Ginnie Mae Completes Record-Setting Year

Ginnie Mae issued a record $748 billion in mortgage-backed securities during the recently completed fiscal year, nearly 50 percent higher than the previous record, the government-owned housing corporation announced Wednesday. Ginnie Mae, which is the largest source of mortgage funding for first-time homebuyers, helped more than 2.8 million households secure homeownership or rental housing. The previous record was $504 billion in 2017. “2020 is a year that will stand out in the record books for Ginnie Mae,” Principal Executive Vice President Seth Appleton said. “We attracted record capital to support affordable homeownership and rental housing opportunities for millions of American households, advanced key modernization initiatives, and responded swiftly to the COVID-19 National Emergency, all while operating in a remote environment.”…

Ginnie Mae Issues $63.44 Billion In MBS In May

Ginnie Mae announced today that its total outstanding principal balance in May was $2.15 trillion – up from $2.07 trillion a year earlier. Ginnie Mae also said it issued $63.44 billion in mortgage-backed securities in May, providing financing for more than 235,000 homeowners and renters. “Ginnie Mae MBS issuance in May of more than $63 billion financed housing for more than 235,000 families,” Ginnie Mae Principal Executive Vice President Seth Appleton said. “The national economy relies on a strong housing finance system and we at Ginnie Mae are unwavering in our mission to ensure that money flows safely and consistently to communities across the United States while minimizing risks to taxpayers.” Ginnie Mae is a wholly owned government corporation that…