Northeast Leads Builder Confidence Higher

A jump in builder confidence in the Northeast led the national level modestly higher this month. Behind the improvement were strong economic conditions and lower lumber prices.

October 2018’s Housing Market Index was determined to be a seasonally adjusted 68. An index above 50 is an indication that more builders view conditions as good than poor.

A one-point gain was made from the previous month, when the index fell to the lowest level in 12 months. But the the index was no different than in the same month last year.


Source: Mortgage Daily

Home Purchase Financing Outlook Boosted $120 Bil

Mortgage bankers have lifted their latest forecast for the origination of loans to finance house purchases by $120 billion over the next three years. There was even a modest bump in the three-year refinance outlook.

In the final three months of this year, primary originators are expected to generate $385 billion in single-family loan production. The total includes purchase-money and refinance volume.

Mortgage originations are then expected to tumble to $326 billion during the first three months of next year before bouncing up to $448 billion in the second-quarter 2019.


Source: Mortgage Daily

Mortgage Delinquency Down in September

A report that tracks the performance of consumer credit, including mortgages, revealed an across-the-board improvement in consumer delinquency — with Dallas improving most among large cities. Hurricanes could drive up rates in some regions.

Ninety-day delinquency on consumer credit — including automobile loans, bank cards, first-lien mortgages and second-lien mortgages — was 0.82 percent as of Sept. 30, according to the Composite Credit Default Index.

A 5-basis-point decline was recorded for the index from one month earlier. Compared to the same 30 days one year earlier, delinquency for U.S. consumers has fallen 6 BPS.


Source: Mortgage Daily

3-Yr Low Ginnie Issuance as Book Surpasses $2 Tril

Annual securitizations were the lowest they’ve been in three years at Ginnie Mae. Jumbo issuance plunged by a third, but reverse mortgage activity was higher. The government-owned corporation’s book of business broke $2 trillion.

Including residential and multifamily activity, issuance of Ginnie Mae mortgage-backed securities during September came to $35.749 billion, according to monthly operational data from the Washington-based firm.

Securitizations on behalf of the Government National Mortgage Association, as it is formally known, retreated from $38.872 trillion the preceding month and dropped from $41.580 billion a year previous.


Source: Mortgage Daily

Record BofA Pre-Tax Earnings as Home Lending Drops

Quarterly record pre-tax earnings were reported by Bank of America Corp. In the mortgage business, loan production tumbled on a linked-quarter and year-over-year basis.

BofA’s third-quarter income before income taxes climbed to $9.0 billion from $7.6 billion during the same three months in 2017, according to earnings data released Monday.

Results at the Charlotte, North Carolina-based bank-holding company also improved compared to the preceding three-month period, when income came to $8.5 billion.


Source: Mortgage Daily

Citi Mortgage Originations and Delinquency Up

Citigroup Inc. nudged up quarterly home lending. But the residential servicing portfolio continued its contraction, delinquency deteriorated, and mortgage earnings were weaker.

In its third-quarter earnings report, the New York-based financial services conglomerate revealed company-wide income from continuing operations before income taxes of $6.1 billion.

Citi’s earnings improved from $6.0 billion earned during the three months ended June 30, 2017. Income also ascended from $5.9 billion in the preceding three months.


Source: Mortgage Daily

Purchases to Push Up 2019 Mortgage Originations

Even though national home lending by all originators is expected to retreat this year, an increase in purchase financing is expected to push up next year’s overall production.

American mortgage bankers are expected to originate 4.2 million loans for $1.1212 trillion this year that will be used to finance the purchase of a single-family residence.

That’s an increase over 2017, when purchase-money production amounted to a downwardly revised 4.1 million mortgages for $1.0734 trillion.


Source: Mortgage Daily

Frmr CFPB Director Facing Nemesis in Ohio Gov Race

Richard Cordray, the former director of the Consumer Financial Protection Bureau, is battling his nemesis for the chief executive job in the Buckeye State.

Back in 2010, Cordray was unseated as Ohio’s attorney general by Republican Mike DeWine. Within weeks of his loss, Cordray was hired to serve as the CFPB’s first enforcement director.

Now Cordray is facing off again with DeWine — who still holds the office of attorney general — in a closely fought and increasingly nasty race for Ohio governor.


Source: Mortgage Daily

Chase's Mortgage Earnings Sink, Lending Edges Up

Richard Cordray, the former director of the Consumer Financial Protection Bureau, is battling his nemesis for the chief executive job in the Buckeye State.

Back in 2010, Cordray was unseated as Ohio’s attorney general by Republican Mike DeWine. Within weeks of his loss, Cordray was hired to serve as the CFPB’s first enforcement director.

Now Cordray is facing off again with DeWine — who still holds the office of attorney general — in a closely fought and increasingly nasty race for Ohio governor.


Source: Mortgage Daily

Purchases Lead Mortgage Biz Lower in Holiday Week

Weekly mortgage business slowed during the holiday week and was also down from last year. Home purchase financing business took the biggest weekly hit, while refinances suffered least.

At 115, Mortgage Daily’s U.S. Mortgage Market Index for the week that finished on Oct. 12 retreated twelve percent from seven days prior. No adjustments were made for Columbus Day.

A more telling comparison, one with the same week last year, indicated that the index — a measure of average per-user rate locks by customers — had a 10 percent decline.


Source: Mortgage Daily