FHFA: No Lump Sum On Fannie, Freddie Loans

The Federal Housing Finance Agency issued a reminder Monday that borrowers who go into forbearance will not have to repay missed payments all at once if their mortgages are backed by Fannie Mae or Freddie Mac. FHFA said the statement was issued to “combat ongoing misinformation” and urged all mortgage lenders to adopt similar policies. “During this national health emergency, no one should be worried about losing their home,” FHFA Director Mark Calabria said. “No lump sum is required at the end of a borrower’s forbearance plan for Enterprise-backed mortgages.” The $2 trillion CARES Act includes a moratorium on foreclosures and the right to forbearance. Forbearance allows borrowers with a federally backed mortgage to put off payments for at least…

“Flying W”: Uneven Housing Market Recovery Expected

The housing market will be besieged by the twin forces of shrinking supply and shrinking demand during the coronavirus pandemic, causing an uneven recovery over the next 12 months, according to a forecast released Wednesday by real estate investor Haus. In an analysis by Haus’ chief economist, the organization expects a recovery that looks like a “flying W” – an initial sharp drop this spring, followed by a rebound in the summer, another downturn in the fall and finally a solid road to recovery by next spring. The analysis predicts that single-family home sales and purchase mortgage originations will see the most impact. “There is likely to be both a reduction in demand and supply,” Haus chief economist Ralph McLaughlin…

Mortgage Roundup (4/21/21) – New Listings, Predictions & Credit

Good morning! Today is Tuesday, April 21. President Trump says he will suspend immigration into the U.S. to protect jobs amid coronavirus fallout. Georgia will reopen gyms, hair salons, and bowling alleys this week. North Korea’s leader, Kim Jong Un, is reportedly in grave danger after surgery.  And in mortgage and housing news … NEW LISTINGS: The number of new houses going on the market is plummeting as the coronavirus pandemic wears on, according to an analysis released by Redfin. FORBEARANCE SPIKE: The number of loans in forbearance continues to rise as borrowers cope with economic hardship caused by the coronavirus pandemic. CALABRIA WRONG: Federal Housing Finance Agency Director Mark Calabria said on April 1 he expected 300,000 Fannie Mae and Freddie Mac loans – or 1…

Mortgage Roundup (4/20/20) – Forbearance, IMBs & Recovery

Good morning! Today is Monday, April 20. Democrats and the White House are close to a deal to help small businesses hurt by the coronavirus. Shake Shack plans to return its $10 million paycheck protection loan after getting needed capital on its own. Neiman Marcus is preparing to seek bankruptcy protection this week. And in mortgage and housing news … GSE FORBEARANCE: FHFA Director Mark Calabria appears to have misjudged the number of mortgages projected to be in forbearance. INDEPENDENT MORTGAGE BANKS: The lending business was significantly more profitable for independent mortgage banks in 2019, though 2020 is going to be another story.  LUMP SUM: Realtors are advising clients that they may owe missed monthly payments in a lump sum at the end of the forbearance period. HOUSING COUNSELORS: Coronavirus…

Analysis: 1.4 Million GSE Mortgages In Forbearance

Mark Calabria appears to have misjudged the burden the coronavirus pandemic is going to have on the mortgage industry. Calabria, the director of the Federal Housing Finance Agency, told HousingWire earlier this month that he expected about 1 million mortgages backed by Freddie Mac and Fannie Mae to go into forbearance. Financial technology firm Black Knight found that there were nearly 1.4 million Fannie and Freddie loans in forbearance as of Friday, April 19 – representing 4.9 percent of their mortgages. “In these times, it is essential to both our industry and for the benefit of the entire U.S. economy to have a clear understanding of the magnitude of the mortgage forbearance situation,” Black Knight CEO Anthony Jabbour said. Calabria has been…

IMB Profits Grew 300% In 2019

By Jim Perskie The lending business was significantly more profitable for independent mortgage banks (IMBs) in 2019. IMBs and mortgage subsidiaries of chartered banks made an average profit of $1,470 on each loan they originated last year – up from $367 in 2018, according to a report released Friday by Mortgage Bankers Association. The report also found: Average production volume was $2.7 billion (10,411 loans) per company in 2019, up from $2 billion (8,171 loans) per company in 2018.On a repeater company basis, average production volume was $2.94 billion (11,227 loans) in 2019, up from $2.14 billion (8,805 loans) in 2018. For the mortgage industry as whole, MBA estimates production volume at $2.17 trillion in 2019, up from $1.68 trillion in 2018.The…