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Volume 18 | Issue 168 | Friday, August 30, 2019

The Lede


Paper Illustrates 'Substantial' Evolution of First-Time Homebuyer Profile

A new paper from the Joint Center for Housing Studies at Harvard University said the profile of first-time homebuyers is rapidly shifting from "traditional" households to never-married and newly formed households.


Top National News

Will GSE Reform Get Some Clarity from Long-Awaited Blueprints?

American Banker, Aug. 29, 2019--Hannah Lang (free article)
The mortgage industry will be looking for answers when the Trump administration unveils its plans to shake up the housing finance system and end the conservatorships of Fannie Mae and Freddie Mac. But the blueprints could raise just as many questions. (MBA mention)

Mortgage Rates Hold Steady Despite Sinking Bond Yields

Washington Post, Aug. 29, 2019--Kathy Orton
Mortgage rates showed little change this week as investors continued to shy away from mortgage-backed securities. (MBA mention)

Lenders are Making More Money on Mortgages than They Have in Three Years

HousingWire, Aug. 29, 2019--Kelsey Ramirez
Lenders reported making a profit on mortgages in the second quarter. In fact, according to a report released Thursday by the Mortgage Bankers Association, lenders made the highest profit per loan they've seen since 2016.

Mixed Economic Signals Could Spell a Choppy Housing Market

Riverside Press-Enterprise (Calif.)., Aug. 29, 2019--Jeff Lazerson
Speculation is rampant about where the economy is headed along with matters influencing long-term mortgage rates and overall real estate riches. While lots of ideas are being tossed around, the hottest topics are about the Fed and the presidential election. (MBA mention)

Banks Fire Up Their Mortgage Machine for a Refinancing Boom

Bloomberg, Aug. 29, 2019--Hannah Levitt, Claire Boston
Lenders thought it was time to shrink their mortgage businesses. Now they're finding they were wrong. With rates for home loans sinking to their lowest levels since late 2016, Wells Fargo & Co., the biggest mortgage lender in the U.S., has boosted staffing for the business by about 10% this year and plans to keep hiring. Bank of America Corp. is hiring in areas including sales, processing and underwriting.

Historic Asset Boom Passes by Half of Families

Wall Street Journal, Aug. 30, 2019--David Harrison, Maureen Linke (subscription)
The decadelong economic expansion has showered the U.S. with staggering new wealth driven by a booming stock market and rising house prices. But that windfall has passed by many Americans.

It's Taking Less Time to Get a Mortgage

Marketplace, Aug. 29, 2019--Ben Bradford
A survey this month from LendingTree found the average closing time has fallen by almost half in the past two years, taking 40 days in 2019, down from 74 days in 2017.

U.S. Charges Reverse Mortgage Lender Live Well's Ex-CEO with Fraud

Reuters, Aug. 29, 2019--Jonathan Stempel
Michael Hild, 44, who was also Live Well's chief executive, generated more than $24 million of compensation tied to the scheme, which ran from September 2015 to May 2019, according to federal prosecutors in Manhattan who announced the charges.

Ditech Sale Blocked by Homeowner Claims of Botched Mortgages

National Mortgage News, Aug. 29, 2019 (subscription)
Federal bankruptcy Judge James Garrity Jr. rejected the plan after two days of hearing evidence and arguments earlier this month from lawyers for Ditech and a consumer creditor committee. The committee asserted the company shouldn't be able to sell its businesses if it meant wiping out the ability of homeowners to correct what they say are errors related to their loans.

Residential Finance News

MBA Offices Closed Labor Day

MBA offices will be closed next Monday, Sept. 2, in observance of the Labor Day holiday. MBA NewsLink will not publish that day.

July Pending Home Sales Drop

Pending home sales fell in July, reversing from two consecutive months of gains, the National Association of Realtors reported yesterday.

First American: Defect Index Continues Downward Trend, Thanks to Refinancings

The refinance mini-boom has been good news for lenders; it's also been good news in deterring mortgage defects and fraud, according to First American Financial Corp., Santa Ana, Calif.

2nd Quarter GDP Slows to 2.0%

Gross domestic product slowed to 2 percent in the second quarter, according to the second (revised) estimate issued by the Bureau of Economic Analysis yesterday.

Commercial/Multifamily News

Office Sector Sees Weakest Growth Outlook Among Property Types

Ten-X, Irvine, Calif., said the office sector has the weakest growth outlook of all commercial real estate sectors despite the current strong job market.

Commercial/Multifamily Briefs

LGIS Group, Atlanta, signed an agreement with commercial insurance agency Tanner, Ballew & Maloof. TBM will now include LGIS's commercial property loan insurance in its range of commercial property, casualty products and premium finance services.

Dealmaker: Manhattan's 540 Madison Ave. Changes Hands for $310M

DivcoWest, San Francisco, acquired 540 Madison Avenue in Midtown Manhattan's Plaza District from Boston Properties, Boston.

MBA News

MBA Regulatory Compliance Conference 2019 in Washington Sept. 22-24

The Mortgage Bankers Association's annual Regulatory Compliance Conference takes place Sept. 22-24 at the Grand Hyatt in Washington, D.C. Early registration deadline is Monday, Aug. 12.

MBA Education Advanced Risk Management Concepts Workshop in Chicago Sept. 15

MBA Education presents a special edition of its Advanced Risk Management Concepts Workshop on Sunday, Sept. 15 in conjunction with the MBA Risk Management, Quality Assurance and Fraud Prevention Forum in Chicago.

MBA Compliance Essentials Offers Certified Mortgage Compliance Professional Designation Level 1

Earn recognition for your mortgage compliance expertise: MBA Education and the MBA Compliance Essentials program offer the only certification and designation program geared exclusively towards compliance professionals in the mortgage finance industry, the Certified Mortgage Compliance Professional (CMCP).

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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