Calabria to Seek Input on Future Fannie/Freddie Policies

Posted To: MND NewsWire

Mark Calabria, director of the Federal Housing Finance Agency (FHFA) used the annual convention and expo of the Mortgage Bankers Association to announce changes in the agency’s requirements for certain operations of the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. FHFA is seeking comments on a proposed rule requiring the GSEs to provide advance notice to FHFA of new activities and to obtain prior approval before they launch any new products. The rule establishes revised criteria for determining if such notice is required and determining if an activity is a new product that merits public notice and comment. In a press release that accompanied Calabria’s announcement at the virtual MBA event, the agency said it is obligated to ensure Fannie and Freddie stay focused on their…(read more)

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Source: Mortgage News Daily

Looks Like Residential Construction is Back on Track

Posted To: MND NewsWire

Residential construction resumed its upward trend after a brief pause in August. The U.S. Census Bureau and Department of Housing and Urban Development reported that all three measures of construction, permitting, housing starts, and unit completions, increased in September. Permits for privately owned residential construction were issued at a seasonally adjusted annual rate of 1,553,000, up by 5.2 percent from the 1,476,000-unit annual rate (revised from 1,416,000) in August. The increase from the previous September’s rate of 1,437,000 units was 8.1 percent. Analysts had expected permits to recover from their slight (0.9 percent) downturn in August but those polled by Econoday had a consensus of only 1,451,000 units. Even the high end of their 1,375,000 to 1,500,000 forecast range was well…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Bond Bears Asking Yet Again, Is Now a Good Time For a Breakout?

Posted To: MBS Commentary

It was fun and easy to get caught up in (or spoiled by) the recent ultra-narrow range in the bond market. The boundaries of that range were .62 and .72. It lasted for roughly 2 months with one brief exception for a failed breakout attempt, which is nothing short of impressive for a range that narrow. The broader range remained intact, with the aforementioned breakout attempt stopping at 0.79% in late August. That late August sell-off made 0.79% an important level because it reinforced previous behavior from early April and mid-June. Simply put, there is no higher 10yr yield that's seen more bounces since bonds first settled into their post-covid range. That was true even before the late-August bounce, actually. So perhaps that bounce was simply a way for bond bears to ask if it was time…(read more)

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Source: Mortgage News Daily

MLO Jobs; Training, Servicing, Tech, Broker Tools; Events and Training; Freddie and Fannie Changes

Posted To: Pipeline Press

For all you Romans out there, happy X/XX/XX. As we sail through October, are these the best quarters to be an originator, or a lender, ever? Yes. If you believe Fannie Mae, annual mortgage originations are likely to top $4.1 trillion for the first time ever, as there will be more refinancings this year ($2.6 trillion plus $1.5 trillion of purchase deals) than total loans produced in 2019 ($2.46 trillion). That would trump 2003’s $3.7 trillion, when some LOs were in 1st grade. Freddie Mac is thinking $3.6 trillion. Yes, we lagged earlier this year, but that’s an average of $300 billion a month, $70 billion a week, $14 billion a day. And this despite the primary/secondary at or near an all-time wide, which means that even if MBS prices are constant, rate sheets may improve. Regulators…(read more)

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Source: Mortgage News Daily

Mortgage Rates Flat to Begin The Week–Still Not At All Time Lows

Posted To: Mortgage Rate Watch

For some unknown reason, there were additional articles over the weekend touting ” all-time low mortgage rates.” Underpinning these alleged rates is primary data that was released on Wednesday and Thursday last week. In short, the two weekly survey-based mortgage rate indices agreed that best-case-scenario rates were at all-time lows. To be fair, they’re not terribly far off base. “Best-case scenario” rates are indeed pretty close to all time lows. The methodology limitations of the surveys could easily explain how they each missed the actual all-time lows that occurred in early August and are thus seeing slightly lower rates now. But do keep in mind that a refinance transaction can no longer be viewed as a best-case scenario due to the new adverse market fee applied to all almost all refis…(read more)

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Source: Mortgage News Daily

Home Purchase Demand Still Strong, but Slowing Down

Posted To: MND NewsWire

While applications for new home purchase mortgages jumped in September, the Mortgage Bankers Association (MBA) expects only modest changes in the September sales data. MBA’s Builder Application Survey (BAS) data shows mortgage applications for new home purchases increased 38.2 percent in September compared to a year earlier but were down 5 percent from August 2020 . The latter change does not include any adjustment for typical seasonal patterns. MBA estimates new single-family homes were selling at a seasonally adjusted annual rate of 869,000 units in September 2020. This estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. The estimate is a decrease of 0.2 percent from the August sales rate of 871,000 units…(read more)

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Source: Mortgage News Daily

MBS Week Ahead: Light Week For Data, But Plenty of Threats

Posted To: MBS Commentary

Pressure is mounting for the bond market. After a period of intensely calm, narrow trading throughout September, 10yr yields quickly moved to challenge recent range boundaries heading into October. There are known risks on the horizon, with the presidential election and fiscal stimulus being the two biggest flashpoints. Should we assume additional momentum toward weaker levels is simply waiting for a few of these shoes to drop? That depends. Of the two flashpoints, only stimulus carries an obviously negative connotation for the bond market. There are two reasons for this. On one hand, stimulus hurts bonds to whatever extent it helps the economy (a stronger economy supports higher rates and encourages investments to shift toward riskier assets like stocks). On the other hand, stimulus is directly…(read more)

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Source: Mortgage News Daily

Builder Confidence Sets a New Record Once Again

Posted To: MND NewsWire

For only the second time in its 35-year history, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) topped 80 this month. The first time was in September. The index, a measure of builder confidence in the market for newly built single-family homes increased two points to 85, breaking the previous high of 83 set last month. “Traffic remains high and record-low interest rates are keeping demand strong as the concept of ‘home’ has taken on renewed importance for work, study and other purposes in the Covid era,” said NAHB Chairman Chuck Fowke. “However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times.” Derived from a monthly survey of its…(read more)

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Source: Mortgage News Daily

Second Homes, Widespread but Few in Number

Posted To: MND NewsWire

There were approximately 7.5 million second homes in the U.S. in 2018, the most recent year for which data is available. This is 5.5 percent of the nation’s total housing stock. Na Zhao, writing in the National Association of Home Builders (NAHB’s) Eye on Housing blog, says the largest share of these homes are in Florida with a total of 1.1 million homes, 14.5 percent of the country’s total. The fewest homes, only 20,000, were in South Dakota NAHB defines a second home as one that qualify for the home mortgage interest deduction using the Census Bureau’s 2018 American Community Survey (ACS). This does not include houses held primarily for investment or business purposes nor does it include homes under construction. Half of the nation’s second homes can be found in nine states : Florida, California…(read more)

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Source: Mortgage News Daily

Compliance, AE, MLO Jobs; Marketing, Broker, Servicing Products; Online Disclosure Survey

Posted To: Pipeline Press

Fifteen days until the election! How many days would it take you, or the company that employs you, to save up $11 million? In my discussions with CEOs, they are more concerned about how the election may impact the future regulatory environment than interest rates. I mention that because Florida’s Ocwen Financial Corp. (“New Co.” spelled backward, by the way) agreed to provide more than $11 million in cash and services to settle a lawsuit by Florida’s attorney general alleging widespread misconduct by its mortgage servicing business. “It follows years of accusations from across the United States that Ocwen routinely abused its mortgage customers with, according to the attorney general’s 2017 civil complaint, illegal foreclosures, misapplied mortgage payments, failure…(read more)

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Source: Mortgage News Daily