Black Knight: Equity Won’t Save Homeowners From Foreclosure

Huge equity increases for homeowners might not be enough to prevent foreclosures, according to Black Knight’s latest Mortgage Monitor Report. “An analysis of our McDash loan-level mortgage performance dataset back to 2007 shows that holding equity in one’s home might not be a blanket backstop to foreclosure activity,” said Black Knight Data & Analytics President Ben Graboske.  He explained that for homeowners who were 120 or more days late, having high equity did not significantly change the likelihood of being recommended for foreclosure. While borrowers are considerably less likely to have their homes involuntarily liquidated if they have high equity, it does happen. Thirty percent of borrowers recommended for foreclosure with 40% equity stakes lost their homes. “What the data…

Morning Roundup (10/5/2021)– Pandora Papers, Forbearances Fall

Good Morning! Today is Tuesday, October 5. Prices for West Texas Intermediate (WTI) crude oil shot to their highest levels since 2014. Facebook whistleblower Frances Haugen is testifying today before a Senate consumer protection panel. An international group of journalists released the “Pandora Papers,” more than 11.9 million documents showing celebrities and world leaders have used offshore tax havens to conceal their financial activities. And in mortgage and housing news… Forbearances Keeping Falling: Forbearances fell to 2.89%, continuing to trend down as relief plans expire, according to MBA’s latest survey. Debt Ceiling: President Joe Biden warned of ominous outcomes if efforts to raise the debt ceiling didn’t pass. Is that true? New Treasury Guidelines: Grantees that haven’t utilized at least…

Should Homebuyers Care About Debt Ceiling Debate?

When President Joe Biden was trying to pressure Republicans into supporting Democrats’ efforts to raise the debt ceiling, he warned of ominous outcomes should the effort fail. “People may see the value of their retirement accounts shrink. They may see interest rates go up, which will ultimately raise their mortgage payments and car payments,” Biden said. Is that true? Political pundits on both sides of the aisle appear to agree the debt ceiling will get lifted, one way or another. “It has to be done, it will be done. The debt ceiling will be raised,” Fox News’ commentator Brit Hume said Monday night. “This will get done.” But what if something goes wrong in Washington, DC — hardly an unusual…

Morning Roundup (10/4/2021)– Ishbia Stipends Pose Title IX Problem, Mortgage Payments Worst Since 2008

Good Morning! Today is Monday, October 4. New Covid cases have fallen by 35% since September 1. Migrants are surging at the southern U.S. border due to the economic devastation wreaked by the pandemic on South America. Vice President Kamala Harris sold her Washington, D.C., condo for $1.85 million. And in mortgage and housing news… Is Mat Ishbia Leading UWM Into A Title IX Lawsuit?: Ishbia’s monthly stipends for male student athletes could lead to Title IX challenges. Worst Since 2008: The median American household would need to spend 32.1% of its income to cover mortgage payments on a median-priced home, the most unaffordable mortgage payments have been since the 2008 recession. PennyMac: PennyMac is raising conforming loan limits by almost 14% through broker and correspondent channels, anticipating cap…

Morning Roundup (10/1/2021)– Teachers, Nurses Struggle With Affordable Housing, Forbearances Down

Good Morning! Today is Friday, October 1. Lawmakers avoided a partial shutdown last night by signing a bill to fund the government. House Democrats delayed a vote on the $1 trillion infrastructure bill. Supreme Court Justice Brett Kavanaugh tested positive for COVID-19. U.S. jobless claims remained near pandemic lows during September. And in mortgage and housing news… Teachers, Nurses Struggle With Housing: The lack of affordable housing is forcing in-person workers like teachers and nurses into smaller, older homes, according to a Zillow report. Forbearances Fall: Forbearances are down 11% month-over-month, the fastest rate of decline since July, Black Knight reported. Seniors At Home: An AAG survey found that over 80% of seniors do not want to sell their homes.…

Morning Roundup (9/30/2021)– Interest Rates Top 3%, Investor Confidence Tanks

Good Morning! Today is Thursday, September 30. The House plans to vote today on a $1 trillion infrastructure plan. A new AP poll finds President Biden’s vaccine mandate splits Americans down party lines. The NCAA will allow women’s basketball to use the phrase “March Madness,” which used to be restricted to the men’s tournament. And in mortgage and housing news… Freddie Mac: Interest rates rose to 3.01% this week, Freddie Mac’s PMMS reported. Investor Confidence Falls: Nearly half of real-estate investors believe the investment market is worse than a year ago, and 36% expect it to stay bad over the next six months. AIME Conference: 3,000 mortgage professionals attended AIME’s 4th Annual Fuse conference. Pending Home Sales Rebound: Pending home…

Freddie Mac: Mortgage Rates Back Above 3%

Mortgage rates rose to 3.01% over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) reports the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent. “Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June,” said Sam Khater, Freddie Mac’s Chief Economist. “Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages.” On Tuesday, both Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen testified before Congress…

Morning Roundup (9/29/2021)– Credit Scores Climbing, Loan Applications Falling

Good Morning! Today is Wednesday, September 29. Consumer confidence dipped in September, as President Biden’s poll numbers on the economy continue to slip. A Wall Street Journal investigation found that 130 federal judges broke the law by overseeing cases involving companies in which they or their families owned stock. The FTC is considering bypassing Congress to strengthen online privacy protections. And in mortgage and housing news… Loan Applications Fall: Mortgage loan application volume fell 1.1% last week, MBA’s weekly survey reports. Commercial/Multifamily Debt Up: The level of outstanding commercial/multifamily mortgage debt rose by $60.7 billion in Q2 2021, according to the MBA’s Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Yellen, Powell See Inflation Ahead: In testimony before the Senate Banking Committee, America’s top two financial regulators said inflation…

Yellen, Powell: Higher Inflation on the Way

Two of the Biden administration’s top finance officials are warning that inflation is on the rise and is likely to linger, which could have an impact on the cost of both houses and the mortgages needed to buy them. During testimony before the Senate Banking Committee, Treasury Secretary Janet Yellen acknowledged that inflation is rising twice as fast as the 2% she had predicted. “Probably closer to 4% and that already almost must be the case based on what’s happened this year,” she told Sen. John Kennedy (R-La.) “Inflation is elevated and will likely remain so in coming months before moderating,” Fed Chairman Jerome Powell said in his opening statement. When asked if the inflation problem is more significant than…

MBA: Loan Applications Fall

Mortgage loan application volume fell 1.1% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. Interest rate spikes stopped the upward momentum of applications seen in last week’s survey. The Market Composite Index, which measures application volume, fell 1.1% on an adjusted basis. On the same basis, they fell 1% from the week before, which is 13% lower year over year. The share of refinancing applications fell 1% and was 0.4% higher compared to a year ago. The seasonally adjusted Purchase Index fell 1%, while the unadjusted Purchase Index fell 2% compared to the week before, down 12% from the previous year. “Increased optimism about the strength of the economy pushed Treasury yields higher following last week’s FOMC meeting.…