CFPB Director Calls For End To Big Bank Bailouts

By KIMBERLEY HAAS The director of the Consumer Financial Protection Bureau says it’s time to take big bank bailouts off the table. Rohit Chopra shared his candid opinions on the subject during the Mortgage Bankers Association’s annual convention and expo last week during an on-stage conversation with MBA President and CEO Bob Broeksmit. Chopra said although the financial system is dependent on the banking system operating day-to-day without interruption, he doesn’t think the public should be on the hook for bailing banks out when they get into trouble. “Banks, especially big banks, get a lot of benefits from the public. Big subsidies, direct and indirect, and I don’t think the public should be on the hook for bailing them out…

Fed’s Policies Take Center Stage At MBA Convention In Philadelphia

By KIMBERLEY HAAS The president and CEO of the Federal Reserve Bank of Philadelphia knew he was facing a tough crowd when he took the stage during a Monday morning session at the Mortgage Bankers Association’s annual convention and expo. “I stand here this morning fully aware of the mood in this room and I am also fully aware of the way the actions we on the FOMC have taken over the past 18 months in our efforts to tame inflation to get it back to a 2% annual target have, in their own way, contributed to the current mortgage climate,” Patrick Harker said. Harker said he met with community members this summer to see firsthand the impacts that monetary…

MBA Annual Convention And Expo Kicks Off In Philadelphia

By KIMBERLEY HAAS The Mortgage Bankers Association’s chief economist and his team had some good news for those in attendance of their annual convention and expo on Sunday afternoon. Total mortgage origination volume is expected to be $1.95 trillion in 2024, up from the $1.64 trillion projected for 2023. At the same time, volume is predicted to increase 19% by loan count, with 5.2 million loans expected next year. Michael Fratantoni, chief economist and senior vice president of research and industry technology, said members just have to make it through the winter. “In terms of origination volume, we think 2023 is the low point,” Fratantoni said, adding that many lenders have had five or six quarters of production losses. In…

What Does Today’s Mortgage Professional Look Like?

By CHUCK GREEN Mirror, mirror, on the wall, show us a reflection of who we are. American homebuyers are getting older. The typical first-time homebuyer is now 36, while the repeat buyer’s age climbed to 59 last year. So what about the mortgage professionals that cater to these consumers? Are they older, industry veterans, or are they young and eager businessmen and women inspired to get into their career paths by the pandemic housing boom? Based on information from Zippia, a career planning site, the average mortgage broker is 44 years old, and 67.5% of brokers are male. The average mortgage originator is also 44 years old. Zippia estimates that 56.2% are men. Beth Rosenbaum, principal of WOSG, a mortgage…

Applications Plummet As Rates Rise Again

Mortgage applications slipped again last week as rates neared 7%, with purchase apps falling to their lowest level since the beginning of June. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 3%, adding to last week’s 1.18% decline. Adjusted purchase applications fell by 3%, while the unadjusted index dipped 3% from the week before and 26% lower YOY. The average interest rate for 30-year fixed loans rose from 6.87% to 6.93%, pushing homeownership farther out of reach for many Americans. “The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates still close to 7% are…

Apps Shrink Again, Wiping Out Last Week’s Gains

After an uptick last week, mortgage applications sank again, falling to their lowest level in a month as rates surged. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.4%, wiping out last week’s 3% gains. Adjusted purchase applications fell by 5%, though the unadjusted index rose 6% from the week before and 22% lower YOY. Refinances dropped, down 4% from the week prior. They remain 30% lower than the same time last year, comprising only 27.4% of total applications. In the past decade, refis averaged 58% of total activity. The average interest rate for 30-year fixed loans rose from 6.75% to 6.85%. This is the…

Applications Fall For A Fourth Straight Week

Mortgage applications fell for a fourth consecutive week, even as rates retreated from near-7% highs. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.4%. Adjusted purchase applications fell by 2%, while the unadjusted index was down 13% from the week before and 27% lower YOY. Rates took a turn, however, with the average interest rate for 30-year fixed loans falling 10 bps from 6.91% to 6.81%. Though that’s good news for home shoppers who can’t wait for a major shift in rates, it’s still the second-highest rate of 2023. “Overall applications were more than 30% lower than a year ago, as borrowers continue to grapple…

MBA CEO Critical Of Policymakers At Conference In New York City

By KIMBERLEY HAAS The president and CEO of the Mortgage Bankers Association said they are pushing for clarity and common sense as he criticized policymakers this week during his remarks at the Secondary and Capital Markets Conference and Expo in New York City. Bob Broeksmit said policymakers plan to pile on more enforcement and red tape at a time when MBA member businesses are struggling. “There seems to be a sense, at the highest levels of government, that the mortgage industry needs to be reined in,” Broeksmit said, according to his prepared remarks. Broeksmit referred to the recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank saying some policymakers are now pushing for new rules that could…

Multifamily, Commercial Lending To Drop 20% In 2023

The Mortgage Bankers Association has once again adjusted its commercial and multifamily lending expectations downward as economic uncertainty continues to constrain the market. MBA’s latest forecast shows commercial and multifamily borrowing falling 20% in 2023 to $654 billion, down from $816 billion in 2022. This is a $9 billion reduction from its January prediction. Multifamily on its own accounts for a 14% drop, slipping from $437 billion in 2022 to $375 billion this year. Apartment investment sales declined at the end of 2022 in response to the Central Bank raising interest rates. “Higher interest rates, uncertainty about property values, and questions about the outlook for the cash flows of some properties led to a slowdown in commercial real estate transactions…

Mortgage Applications Rose After May’s FOMC Meeting

Mortgage applications rose last week across the board as rates dipped in the wake of positive news from the Fed. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 6.3%, changing course after last week’s 1.2% decrease. Adjusted purchase applications rose by 5%, while the unadjusted index was up 5.3% from the week before and 32% lower YOY. The average interest rate for 30-year fixed loans dipped from 6.50% to 6.48%. Refinances also showed movement, up 10% from the week prior. They remain 44% lower than the same time last year, however, comprising only 28% of total applications. In the past decade, refis averaged 58% of…