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Volume 17 | Issue 109 | Wednesday, June 06, 2018

The Lede


MBA Asks Treasury, IRS for Guidance on Qualified Business Income Deduction

The Mortgage Bankers Association this week submitted a letter to the Treasury Department and the Internal Revenue Service, asking for confirmation that mortgage banking companies are eligible for the deduction of qualified business income under new Section 199A of the Internal Revenue Code.


Top National News

Why Loosening the Reins on QM May Put a Dent in GSE Market Share

National Mortgage News, June 5, 2018--Brad Finkelstein (subscription)
The recent growth in the non-QM market and concurrently, in private-label securitizations, is a result of participants across the loan life cycle becoming more comfortable with the risk characteristics of these loans, especially as interest rates rise.

U.S. House Prices to Rise Twice the Speed of Inflation and Pay

Reuters, June 6, 2018--Hari Kishan, Rahul Karunakar
An acute shortage of affordable homes in the United States will continue over the coming year, according to a majority of property market analysts polled by Reuters, driving prices up faster than inflation and wage growth.

High Home Prices And Rising Mortgage Rates Aren't Stopping Sales

Forbes, June 5, 2018--Aly Yale
Mortgage rates hit their highest point in seven years last month, and home prices have jumped 6.5 percent since mid-2017. But somehow, home buying isn't slowing down.

Wells Fargo to Sell 52 Branches to Flagstar Bankcorp

MarketWatch, June 5, 2018--Andrea Riquier
The affected branches are in Indiana, Michigan, Ohio and Wisconsin. Nearly 500 Wells employees at those locations will receive job offers from Flagstar.

Mortgage Lenders Need to Keep an Eye on this Little-Known Mortgage Metric

HousingWire, June 5, 2018--Nate Shultz
The FHA compare ratio is a metric used to assess the loan performance of a lender in a specific geography by comparing its default (90+ days delinquent) and claim rate to its peers in the same jurisdiction.

Alexa, Get Me a Mortgage

HousingWire, June 5, 2018--Kelsey Ramirez
Kimberly Lanham, Digital Risk senior vice president of marketing and client relations, said the company is currently working with AI and machine learning to provide deeper insights. The company also uses it to read structured and unstructured data and can show lenders red flags in the data.

Angel Oak Commercial Lending Buys Stake in Cherrywood Mortgage

National Mortgage News, June 5, 2018--Bonnie Sinnock (subscription)
Angel Oak Commercial Lending has acquired a controlling interest in lender Cherrywood Mortgage in order to strengthen its focus on small-balance commercial lending.

Multifamily Investors Face a Cutback in Loan Size

National Real Estate Investor, June 5, 2018--Bendix Anderson
Rising interest rates are already making a difference for apartment properties. Borrowers can no longer secure the large permanent loans that have become used to.

There are More Jobs than People Out of Work, Something the American Economy Has Never Experienced Before

CNBC, June 5, 2018--Jeff Cox
There are 6.7 million job openings and just 6.4 million available workers to fill them, according to the Bureau of Labor Statistics.

Residential Finance News

Applications Rise (Finally) in MBA Weekly Survey

After eight consecutive weeks of decreases, mortgage applications increased by more than 4 percent last week as key interest rates dropped sharply, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending June 1.

CoreLogic: Across Country, Hot Home Price Appreciation

CoreLogic, Irvine, Calif., reported rapid home price appreciation nationwide, with several "overvalued" markets continuing to see double-digit increases.

Commercial/Multifamily News

Hotel Deal Pace 'Going Strong'

U.S. hotel transaction volumes approached $12 billion through April, up 93 percent compared to the same time last year, reported JLL, Chicago.

Dealmaker: Phillips Realty Capital Secures $70M for Hotel, Apartments

Phillips Realty Capital, Bethesda, Md., secured $70 million in commercial mortgage-backed securities and life company financing for hotel and multifamily assets in Virginia and Texas.

MBA News

MBA Risk Management/QA/Fraud Prevention Forum Sept. 23-25

The Mortgage Bankers Association's annual Risk Management, QA and Fraud Prevention Forum takes place Sept. 23-25 in Los Angeles.

MBA Education Advanced Servicing Workshop Aug. 8-9

MBA Education presents its Advance Servicing Workshop in Irving, Texas Aug. 8-9.

Make Your Voice Heard through MBA Mortgage Action Alliance

The Mortgage Action Alliance is a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association.

About MBA Newslink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem

Editor: Mike Sorohan 202/557-2855 

Editorial Director: Michael Tucker 202/557-2851 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856

Advertising Opportunities: Bill Farmakis 203/834-8832

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