CFPB Proposes New Foreclosure Servicing Rules

The Consumer Financial Protection Bureau proposed new servicing rules geared towards saving homeowners from foreclosure. If finalized, the proposal would require mortgage servicers to prioritize helping borrowers make payments over foreclosure. The Bureau is requesting comments on this topic and possible approaches to ensuring that servicers are producing accurate credit reporting data for borrowers undergoing review for assistance. “When struggling homeowners can get the help they need without unnecessary obstacles, it is better for borrowers, servicers, and the economy as a whole,” said CFPB Director Rohit Chopra. “The CFPB’s proposal would reduce avoidable foreclosures and make the mortgage market more resilient during future crises.” The rules are influenced by commentary from both the public and the mortgage industry, which derived…

Rate Increases Affect Mortgage Applications

Mortgage applications fell last week as rates hovered around 7%. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — slipped by 0.2%. The results include an adjustment for the Fourth of July. Adjusted purchase applications increased by 1%, while the unadjusted index was down 19% and 13% lower YOY. Rates have increased in the last couple of weeks following a brief downward trend. The average 30-year fixed rate actually declined last week, down from 7.03% to 7% flat, but remains too high to entice buyers back to the table. “Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for…

Experts Respond To Biden’s Rent Cap Comments

Housing was barely mentioned in last week’s presidential debate and addressed only by President Joe Biden, not Donald Trump. Biden pushed recent housing actions as proof that his administration is tackling the affordability crisis, an issue that strikes home for millions of Americans. U.S. Secretary of the Treasury Janet Yellen recently announced new efforts by the Treasury Department to increase the supply of affordable housing. Earlier this year, the administration revealed a Housing Supply Action Plan that billed itself as the most comprehensive effort to close the housing supply shortfall in history. While White House efforts to push local governments to reform their zoning policies are lauded on both sides of the aisle, one issue mentioned in the debate is…

Mortgage Applications Barely Budge Despite Rates Falling To A Three-Month Low

Mortgage applications inched up last week, moving just slightly despite rates falling to a three-month low. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — increased by 0.8%, adding to last week’s 0.9% bump. The results include an adjustment for the Juneteenth holiday. Adjusted purchase applications increased by 1%, while the unadjusted index was down 10% and 13% lower YOY. The boost was small despite rates falling to their lowest level in three months, 6.93%. “Lower rates, however, were still not enough to entice refinance borrowers back, as most continue to hold mortgages with considerably lower rates,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.…

Applications Up As Rates Fall Below 7%

Mortgage applications increased last week, though they didn’t match the huge boost seen the week prior. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — increased by 0.9%, adding to last week’s 15.6% jump. Adjusted purchase applications increased by 2%, while the unadjusted index was down 0.1% and 12% lower YOY. Rates declined to 6.94%, its lowest level since March, after the FOMC’s meeting last week. “Purchase applications increased a small amount for the week, led by applications for conventional loans. Refinance application volume was also down slightly for the week but remains about 30% higher than this time last year,”  said Mike Fratantoni, MBA’s SVP and…

Applications Rise, But Not For The Long Haul

Mortgage applications spiked after a few tough weeks on lower mortgage rates, though the bump didn’t last long. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — jumped by 15.6%, reversing last week’s 5.2% dip. Adjusted purchase applications increased by 9%, while the unadjusted index was up 19% and 12% lower YOY. Rates started last week down, though they climbed later in the week on less-than-ideal employment data. That early low point encouraged some borrowers to move quickly, however. The 30-year fixed rate averaged 7.02%, a decline. “Lower rates earlier in the week meant a strong increase in refinance activity, particularly for VA borrowers, who jumped on…

Applications Slip As Rates Rise To 7.07%

Mortgage applications fell for a second consecutive week as rates moved up again. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 5.2%, adding to last week’s 5.7% dip. These results include an adjustment for Memorial Day. Adjusted purchase applications declined by 4%, while the unadjusted index was down 16% and 13% lower YOY. “Mortgage rates moved slightly higher last week, with the 30-year conforming rate reaching 7.07%– its highest level since early May – despite incoming data indicating somewhat slower economic growth,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Government purchase volume was down less, helped by growth in VA applications. The market…

Commercial Delinquencies Up In Q1 2024 Thanks To CRE Stressors

Commercial mortgage delinquencies rose in Q1 2024 as the CRE world faces a mountain of financial stress. The Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report focuses on delinquencies for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. These groups hold more than 80% of commercial mortgage debt outstanding. “Commercial mortgage delinquency rates continued to increase during the first three months of 2024,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research.  “The increase was seen across most capital sources, pointing to the challenges caused by loans that are maturing amid higher interest rates, uncertain property values, and questions about some properties’ fundamentals.” More than…

Cooling Rates Boosts Refis Again

Mortgage applications rose again as rates slipped for a third week and refis rallied. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 1.9%, adding to last week’s 0.5% increase. Adjusted purchase applications declined, however, by 1%, while the unadjusted index was down 2% and 11% lower YOY. Refinances once again drove the rising data this week. Rates declined to 7.01%, their lowest level in seven weeks. “Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications. VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is…

Purchase Applications Slip, Refis See Boost

Mortgage applications rose slightly last week, buoyed by a refi turnaround even as purchase demand faltered. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 0.5%, adding to last week’s 2.6% increase. Adjusted purchase applications declined, however, by 2%, while the unadjusted index was down 2% and 17% lower YOY. Refinances instead drove the rising data this week. Rates declined for a second week, down another 10 BPS to 7.08%, their lowest level since April. “The decline in rates led to a small boost to refinance applications, including another strong week for VA refinances. However, the overall level of refinance activity remains low. Purchase applications…