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Volume 18 | Issue 164 | Monday, August 26, 2019

The Lede


MBA Advocacy Update

On Wednesday, the Federal Housing Administration published Mortgagee Letter 2019-13, which provides temporary guidance clarifying how to satisfy requirements for single-unit approvals in condominium projects not approved by FHA.


Top National News

Here's Why You Might Want to Rethink Getting an Adjustable-Rate Mortgage

CNBC, Aug. 26, 2019--Sarah O'Brien
If you've been considering a mortgage with an adjustable rate, your reasons for going that route might be disappearing.

Bargain-Hunting Robocars Could Spell the End of Downtown Parking...

Fairfield Citizen (Conn.), Aug. 23, 2019--Corey Harper
A 2018 parking study done by the Mortgage Bankers Association found that Seattle's parking density of 29 parking stalls per acre of land is twice its population density of 13 people per acre. Because driverless cars could park outside urban cores to avoid the higher parking charges downtown, they might considerably affect urban land use.

Forget July's Slump in New-Home Sales, Mortgage Rates are Reviving the Housing Market

MarketWatch, Aug. 23, 2019--Jeffry Bartash
Sales of new U.S. homes have zig-zagged up and down for months, but they appear to be creeping higher again overall with mortgage rates falling to multiyear lows.

Powell Issues Warning Over Trade, Signals More Rate Cuts Are Possible

Wall Street Journal, Aug. 23, 2019--Nick Timiraos (subscription)
Federal Reserve Chairman Jerome Powell gave his most forceful warning yet about the risks to the U.S. economy from escalating trade tensions and the limits to the central bank's ability to cushion any fallout.

Regulators Aren't Done Rolling Back Volcker Rule

American Banker, Aug. 25, 2019--Hannah Lang (subscription)
Banks notched a clear victory this past week when regulators approved a significant rollback of the Volcker Rule. But the agencies aren't finished revamping the Dodd-Frank Act restrictions on bank trading.

Appraisals May Soon Not Be Required on Certain Home Sales of $400,000 and Under

HousingWire, Aug. 23, 2019--Ben Lane
In November, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve released a proposal that would increase the appraisal requirement from $250,000 to $400,000, meaning that certain home sales of $400,000 and below would no longer require an appraisal. Now, the proposal is just one step away from being finalized and adopted as proposed.

The Interest Rate Declines That Have Worried Ivestors, Economists and the Fed are Your Mortgage's Fault

Business Insider, Aug. 25, 2019--George Pearkes
The dramatic plunge in interest rates over the past 10 months due to global growth worries, Federal Reserve policy shifts, and risk aversion has become one of the dominant market stories and has captured the attention of investors and policymakers alike. But another factor, undiscussed and invisible to the average investor, is also a major culprit: your mortgage.

Millennial Mortgage Debt Levels Could Soon Top All Other Generations

National Mortage News, Aug. 23, 2019--Elina Tarkazikis (subscription)
Millennial mortgage debt is on pace to reach levels higher than any other generation, according to Experian.

Lighting Up Kitchens, Baths

UExpress, Aug. 23, 2019--Lew Sichelman
In the not-to-distant future -- circa 2025 or so -- kitchens in new homes may be little more than a table that displays recipes and menus, cooks food, warms drinks, and charges mobile devices.

Residential Finance News

New Home Sales Fall, But All Not Bad

HUD and the Census Bureau on Friday reported July new home sales fell by nearly 13 percent from June but improved from a year ago.

The Week Ahead

Congress remains in recess, returning after Labor Day. 

Commercial/Multifamily News

MBA Chart of the Week: Commercial Property Capitalization Rates

Commercial real estate values are a function of a property's income and the capitalization (cap) rate. Essentially the inverse of a price-to-earnings ratio, cap rates are a gauge of the yield investors demand to put their money into commercial real estate--with a lower cap rate demonstrating higher investor interest in each dollar of current income.

Industrial Assets Supporting CRE Price Growth

Real Capital Analytics, New York, said the industrial sector sustained commercial property price growth in July even as CRE transaction volume fell sharply.

Dealmaker: JLL Arranges $168M In Boston Area

JLL, Chicago, arranged $168 million in financing for three Boston-area office and laboratory assets.

MBA News

MBA Human Resources Symposium Sept. 11-12

The Mortgage Bankers Association's annual Human Resources Symposium takes place Sept. 11-12 at the Hyatt Regency in Crystal City, Va.

Upcoming MBA School of Mortgage Banking II Courses

MBA Education presents its popular School of Mortgage Banking Course II in several locations this summer and fall.

Save on FedEx Shipping through MBA Member Advantage Program

Through the MBA Member Advantage Program, you can save up to 29 percent on small package shipping with FedEx.

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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