By CHUCK GREEN
Industry leaders and economists are sharing their opinions about changes to fees for loans backed by Fannie Mae and Freddie Mac after reports that homebuyers with good credit scores and substantial down payments will pay more so fees for borrowers limited by income or wealth can be reduced.
The changes to the loan-level price adjustment matrix by officials at the Federal Housing Finance Agency went into effect on May 1 and are the target of two bills in Congress.
Rep. Stephanie Bice of Oklahoma, vice chairwoman of the Republican Main Street Caucus, introduced the Free Market Mortgage Act. She said the changes will force homebuyers with good credit to pay more for their mortgages to subsidize loans…
By KIMBERLEY HAAS
Attendees at the Mortgage Bankers Association’s National Advocacy Conference shared concerns about housing affordability, trigger leads, and changes to the loan-level price adjustment matrix.
The conference was held last week at the JW Marriott in Washington, DC. MBA members learned about the political and market landscapes on Tuesday before speaking with their elected state representatives on Wednesday. Over 300 members from 39 states participated in those Capitol Hill meetings.
Kellie Allen, vice president of production at Synergy One Lending, was at the conference representing Idaho Mortgage Lenders Association. She was looking forward to talking about the challenges members of her association are facing.
“Affordable housing is a huge one, of course, and then one of the big…
By KIMBERLEY HAAS
Changes to fees for loans backed by Fannie Mae and Freddie Mac are under scrutiny after recent reports that homebuyers with good credit scores and substantial down payments will pay more starting May 1.
Last week, The Washington Times published an article with the headline “Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages.” Author Dave Boyer, a White House correspondent, wrote that although the changes are part of the Federal Housing Finance Agency’s push to make housing more affordable, they will negatively impact traditional borrowers.
“Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who…
By SCOTT KIMBLER
Leaders at the U.S. Department of Housing and Urban Development have unveiled their proposed budget for FY 2024 and say funds will be directed at solving the nation’s housing crisis.
Secretary Marcia Fudge said in a statement that the proposed budget will help ensure every American has access to housing.
“The budget invests in Americans at every station in life – from those seeking to purchase a home to those who receive HUD rental assistance – and will ensure families across the country can live in communities that are safe, affordable, and resilient,” Fudge said.
HUD Deputy Secretary Adrianne Todman said during a press call that the budget reflects the Biden administration’s values and provides a blueprint…
By KIMBERLEY HAAS
The administration worked to assure consumers that the banking system was safe on Monday following the sudden collapse of two financial institutions.
Officials at the Federal Deposit Insurance Corporation announced on Friday that Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation. It was the biggest bank failure since Washington Mutual in 2008.
All insured deposits were transferred to the newly-created Deposit Insurance National Bank of Santa Clara.
Silicon Valley Bank had 17 branches in California and Massachusetts. As of December 31, 2022, it held approximately $209 billion in total assets and about $175.4 billion in total deposits, according to officials.
On Sunday, FDIC officials announced a similar fate for New York-based…
By KIMBERLEY HAAS A new proposed rule meeting President Joe Biden’s call to fully enforce the Fair Housing Act was announced by officials at the U.S. Department of Housing and Urban Development on Thursday. “Affirmatively furthering fair housing means more than merely steering clear of housing discrimination violations,” Demetria McCain, principal deputy assistant secretary for fair housing and equal opportunity, said in a statement. “Today, HUD is taking new, bold action to eliminate the historic patterns of segregation that continue to harm American families. This action will help make the purpose of the Fair Housing Act reality by making it easier for local communities to identify inequities and make concrete commitments to address them.” According to a press release, the rule…
By KIMBERLEY HAAS Officials at the Federal Emergency Management Agency are warning survivors of Hurricane Ian they should be aware of con artists and criminals looking to take advantage of the situation. Predators may promise homeowners a disaster grant in return for payment or fill out an application for assistance without a person’s knowledge, according to the FEMA website. “If a FEMA Inspector comes to your home and you did not submit a FEMA application, your information may have been used without your knowledge to create a FEMA application. If so, please inform the inspector that you did not apply for FEMA assistance so they can submit a request to stop further processing of the application,” the website says. People…
By KIMBERLEY HAAS This Labor Day weekend, some workers are wondering what happened to the American Dream of earning enough from a nine-to-five job to buy their own home — with or without the white picket fence. According to officials at the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the median sales price of a new home in July 2022 was $439,400. The thumbnail measurement for home affordability is a house that costs roughly 2.6 years of your household income, or a 2.6 “price-to-income ratio.” Using the 2.6 price-to-income ratio, your household’s earners would need to bring in $169,000 a year to be able to afford a new home. That is higher than most U.S.…
By KIMBERLEY HAAS The executive director of the New Hampshire Home Builders Association says the biggest problem they are currently facing is unstable prices due to inflation. In a recent interview with The Mortgage Note, Matt Mayberry explained that contractors are trying to stay within their budgets on projects but it is difficult because prices are volatile due to inflation and supply chain issues. It’s also difficult to bid on upcoming work. “How do we estimate jobs correctly? What are the metrics we use to do this?” Mayberry said. One thing that has improved, Mayberry said, is the waiting time for projects to be completed. During the pandemic, many projects were pushed out to a year and a half for…
Consumer advocates and Democratic leaders are asking U.S. regulatory bodies to block TD Bank’s takeover of First Horizon Bank. The Center for Responsible Lending (CRL) and Americans for Financial Reform Education Fund sent a letter to the Federal Reserve and Office of the Comptroller of the Currency asking them to reject a proposed merger between TD Bank and First Horizon Bank. Their letter highlights reasons why regulators should stop the merger, pointing out misconduct by TD Bank and an “exacerbation of the ‘too-big-to-fail’ problem.” Other advocacy groups signed the letter in support. Toronto-Dominion Bank, a Canadian company, announced a plan earlier this year to acquire Memphis, TN-based First Horizon for $13.4 billion in cash. The Bank Merger Act requires the…
