FHFA Looking to Lock-In Fannie/Freddie Liquidity Rules

Posted To: MND NewsWire

In November, the Federal Housing Finance Agency (FHFA) released a new regulatory capital framework for Fannie Mae and Freddie Mac (the GSEs). At the time FHFA said the final rule fulfills Congress’s mandate in the Housing and Economic Recovery Act of 2008 that FHFA establish risk-based capital requirements for the GSEs to ensure their safety and soundness by increasing the quantity and quality of their regulatory capital and reducing the pro-cyclicality of the aggregate capital requirements. This week the agency submitted for comments a companion rule regarding liquidity requirements for the two companies. The agency says its rule is designed to ensure that the GSEs are a source of strength for the mortgage market during downturns in the economy, and to incentivize them to issue an appropriate…(read more)

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Source: Mortgage News Daily

Housing Permits and Starts Show no Signs of Slowing Down

Posted To: MND NewsWire

While housing completions were down, residential construction improved again in November . Permitting was especially strong with a 6.2 percent month-over-month increase. The U.S. Census Bureau and Department of Housing and Urban Development reported that permits were issued at a seasonally adjusted annual rate of 1,639,000 during the month. This was 8.5 percent higher than the permitting level in November 2019. The earlier October estimate was revised down by 1,000 units to 1,544,000. Analysts polled by Econoday had predicted that permits would be in a range of 1,480,000 to 1,580,000 with a consensus of 1,553,000. The forecast from Trading Economics was 1,550,000. Permits for single-family construction rose 1.3 percent from the previous month’s rate of 1,128,000, (revised from 1,120,000.) November…(read more)

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Source: Mortgage News Daily

Yes, The AVERAGE Loan is Taking Almost 2 Months to Close

Posted To: MND NewsWire

According to Ellie Mae’s Origination Insight Report, loans closed during November had an average note rate of 2.97 percent. The 30-year note rate for FHA and Conventional loans dropped below the three percent mark for the first time , averaging 2.99 percent. The note rate on VA loans continued to decrease, hitting 2.72 percent. Refinances constituted 61 percent of total closed loans in the month, 1 point more than in October and 12 points higher than the November 2019 level. The distribution of loans across lenders held relatively steady with conventional loans accounting for 82 percent of total originations and FHA at 10 percent, both unchanged from the previous month. The share of VA loans increased from 5 to 6 percent. The time to close all loans increased to 55 days from 54 days in October…(read more)

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Source: Mortgage News Daily

Ops Jobs; Shell Wanted; CRM, POS, Retention, Jumbo Loan, Capital Markets Products; How News Moves Rates

Posted To: Pipeline Press

Who would’ve thought that one day we’d be smoking weed at a family gathering, but the illegal part would be the family gathering? For most of us, family matters are critical. The year 2030, 10 years from now, marks an important demographic turning point in U.S. history according to the U.S. Census Bureau’s National Population Projections . By 2030, all baby boomers will be older than age 65. Reverse mortgage lenders are aware that this will expand the size of the older population so that 1 in every 5 residents will be retirement age. The population is expected to grow at a slower pace, age considerably and become more racially and ethnically diverse. Net international migration is projected to overtake natural increase in 2030 as the primary driver of population growth in…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Fed in Rearview, Bonds Wait on Stimulus

Posted To: MBS Commentary

The combination of a friendly press conference with Fed Chair Powell and an unfriendly absence of change to the bond buying policy left the bond market with fairly neutral momentum intact heading into the end of the year. The only obvious hurdle to clear is that of fiscal stimulus (or a combo stimulus/spending bill) which could become a reality any time in the next few days. Bonds still probably have some moves to make depending on the outcome (sooner/bigger = higher yields). There's also apparently some motivation to be found in the econ data with today's early trading providing a fresh example. Bonds had been trending toward slightly weaker levels since the 8:20am CME open and abruptly reversed course at 8:30am. That's a perfectly rational move given the extent of Jobless Claims…(read more)

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Source: Mortgage News Daily

Builder Confidence Pulls Back from Record Levels

Posted To: MND NewsWire

After setting successive survey highs in September, October, and November, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) retreated a bit this month. The HMI, which is a measure of home builder confidence in the new home market, fell 4 points to 86. Despite this decline, it was still the second highest reading in the HMI’s 35-year history. Only the November 2020 reading of 90 was higher. NAHB economist Robert Dietz said, “Housing demand is strong entering 2021, however the coming year will see housing affordability challenges as inventory remains low and construction costs are rising. “The issues that have limited housing supply in recent years, including land and material availability and a persistent skilled labor shortage, will continue to place upward…(read more)

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Source: Mortgage News Daily

Mortgage Application Volume Holds Steady as Rates Test Lows

Posted To: MND NewsWire

Mortgage application volume was relatively flat as the nation eased into the holiday season. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, rose 1.1 percent on a seasonally adjusted basis during the week ended December 11. On an unadjusted basis the increase was 0.4 percent. The Refinance Index increased 1.0 percent from the previous week and was 105 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 72.7 percent of total applications from 72.0 percent the previous week. The Purchase Index rose 2.0 percent on both an adjusted and an unadjusted basis. Volume was 26 percent higher than during the same week in 2019. Refi Index vs 30yr Fixed Purchase Index vs 30yr Fixed ” U.S. Treasury rates stayed…(read more)

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Source: Mortgage News Daily

New Home Sales Declined in November as Economic Recovery Slows

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) says applications for new home purchases suffered a significant downturn in November but remain well above the level of activity at the same time in 2019. MBA’s Builder Application Survey (BAS) shows a 16 percent decline in applications from October to November. This does not include any seasonal adjustment. Applications were up 34.7 compared to November 2019. Based on the applications and other data, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 827,000 units during the month, a decrease of 10.8 percent from the October pace of 927,000 units. On an unadjusted basis, MBA estimates that there were 59,000 new home sales in November 2020, down 15.7 percent from 70,000 sales in October. “November new home sales…(read more)

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Source: Mortgage News Daily

Upgraded Economic Outlook, But is Stellar Housing Sustainable?

Posted To: MND NewsWire

A recent spate of positive news has allowed Fannie Mae to upgrade several pieces of its economic forecast this month. The approval of at least one COVID-19 vaccine, new hope for additional stimulus approval, and stronger than expected incoming data has pushed the company’s economists to upgrade their outlook for real gross domestic product (GDP) to negative 2.2 percent for the full year 2020, up from a negative 2.5 percent in their November version. The change for 2021 is more substantial, from 3.3 percent to 4.5 percent. Growth in 2022 has been raised two-tenths of a point to 3.2 percent. The economists say, “We continue to believe that the conditions for a continued, strong recovery are present once the limiting factors of COVID-19 on consumer behavior are lifted.” The Q4 GDP forecast has…(read more)

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Source: Mortgage News Daily

MLO Jobs; Shell Wanted; Fulfillment, Doc, Servicing Products; Training; Few Reasons For Rates to Move

Posted To: Pipeline Press

“We were so poor when I was a kid that we couldn’t afford tinsel. We had to wait for Grandpa to sneeze.” At the opposite end of the economic spectrum, these NBA players had some fun with Jingle Bells . Athletes like NBA players file taxes not only in their home state, but they are also subject to taxes in every state in which they play (work). Working from home still? Can you write off your dining room table and chair since it is your “home office?” Maybe . Maybe not . Ask your company’s CFO or your accountant. There are many holiday-sounding places for homes in the United States. More than a dozen places have Holly in their names, including Mount Holly, NC (population 16,257), and Holly Springs, MS (7,798). There’s also Snowflake, AZ (5,995), Santa…(read more)

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Source: Mortgage News Daily