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Volume 17 | Issue 212 | Monday, October 29, 2018

The Lede


MBA Advocacy Update

MBA submitted an Oct. 22 letter to the Bureau of Consumer Financial Protection, signed by nearly 250 MBA member companies, urging it to revise the Loan Originator Compensation rule.


Top National News

GDP Grows 3.5% in Third Quarter, Championed by Consumer Spending

HousingWire, Oct. 26, 2018--Alcynna Lloyd
"This strong, above trend growth is being driven by stronger consumer spending--fueled by the incredibly healthy job market and rising wages," said MBA Chief Economist Mike Fratantoni. "Stimulative fiscal policy is also clearly spurring faster expansion, with the third quarter data showing gains in defense spending."

Average Down Payment Amounts Fall in Third Quarter

National Mortgage News, Oct. 26, 2018--Paul Centopani (subscription)
While the average down payment percentage of purchase price stayed mostly flat, the average dollar amount dropped 10% from the previous quarter, according to LendingTree.

What's Keepting the Senate from Confirming Ginnie Mae Chief?

National Mortgage News, Oct. 28, 2018--Hannah Lang (subscription)
Michael Bright's nomination to become president of Ginnie Mae has been pending since May and the agency that provides funding for government-insured mortgages has been without a permanent chief for almost two years.

It's Official: California's Housing Market Experiencing Shift

San Jose (Calif.) Mercury News, Oct. 26, 2018--Rose Meily
The California housing market posted its largest annual sales decline since March 2014 in September, as home sales fell below the 400,000-level benchmark for the second consecutive month.

New Frontier in Mortgage Lending: Automation

Orange County Register, Oct. 26, 2018--Jeff Lazerson
Mortgage giants Freddie Mac and Fannie Mae are focused on a faster, more convenient loan approvals using automation. Freddie Mac calls its new product the Freddie Edge. Fannie Mae calls it Day 1 Certainty. There are plenty of industry vendors gushing about how their companies are supporting the digital mortgage era.

U.S. Homeowners Staying Put as Mortgage Rates Lock Them In

Bloomberg, Oct. 27, 2018--Alexandre Tanzi
The median length of time Americans have owned their homes rose to a record of more than eight years in the third quarter, according to ATTOM Data Solutions. That's up from 4.5 years when the recession ended in June 2009.

Best Mortgage Lenders By Category

Mortgage Daily, Oct. 26, 2018
The highest-rated home lender for customer satisfaction was--no surprise--Quicken Loans Inc. The Detroit-based company has been ranked as the No. 1 mortgage lender for customer satisfaction by J.D. Power for eight consecutive years.

Continued Deterioration in Origination Quality

Mortgage Daily, Oct. 26, 2018
As home lenders and investors have recently been a little more relaxed about credit qualifications compared to just after the crisis, mortgage quality has weakened. Still, quality is better than before the crisis, said Moody's Investors Service.

Diamond Residential Mortgage to Pay $1.28 Million after Rogue Branch Manager Defrauds Homebuyers

HousingWire, Oct. 26, 2018--Ben Lane
Diamond Residential Mortgage Company, which is based in Lake Forest, Illinois and has branches in Illinois, Indiana, Michigan, Wisconsin, Missouri, Georgia, Texas, Colorado, California, and Washington, will pay $1.28 million to consumers who were defrauded by Chris Schaller, who ran the company's Springfield, Illinois branch.

Residential Finance News

MBA Opens Doors Foundation Celebrates a ‘Monumental' Week of Fundraising at MBA Annual

The MBA Opens Doors Foundation announced it raised $685,175 during the Mortgage Bankers Association's 2018 Annual Convention and Expo, held in Washington, D.C., Oct. 14-17.

MBA Chart of the Week: Technology Spending

MBA and Celent (a research, advisory and consulting firm) recently released results of their Technology Spending Survey 2018, The Loan Origination Process. The Survey was completed by Chief Information Officers at mortgage lending institutions.

The Week Ahead

Election Day is little more than a week away (Tuesday, Nov. 6). All 435 House seats and 33 Senate seats are up for election.

Commercial/Multifamily News

Institutional-Quality CRE Returns Slip; Cap Rates Reach Historic Lows

Institutional-quality commercial real estate returned 1.67 percent between July and September, down slightly from 1.81 percent in the second quarter, the National Council of Real Estate Investment Fiduciaries reported.

Dealmaker: 400 Madison Ave. Sells for $195M

Daishin Securities Co., Seoul, South Korea, acquired 21-story office asset 400 Madison Avenue for $194.5 million.

MBA News

MBA Independent Mortgage Bankers Conference Jan. 28-31

The Mortgage Bankers Association's Independent Mortgage Bankers Conference takes place Jan. 28-31 at the Hyatt Regency San Francisco.

MISMO Seeks Input on Standardized Dataset for Private Label Mortgage Assets

MISMO®, the mortgage industry's standards organization, seeks participants to define a standardized mortgage asset dataset to support rating agency asset valuation efforts necessary for securitizing residential mortgages.

MBA Education School of Loan Origination Begins Jan. 22

MBA Education presents its popular School of Loan Origination instructor-guided online course from Jan. 22-Feb. 14.

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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