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Volume 18 | Issue 162 | Thursday, August 22, 2019

The Lede


MBA: 2Q Commercial/Multifamily Borrowing Jumps by 29% from 1Q, 10% From Year Ago

Commercial and multifamily mortgage loan originations rose by 29 percent from the first quarter and rose by10 percent from a year ago, the Mortgage Bankers Association reported this morning in its Quarterly Survey of Commercial/Multifamily Bankers Originations.


Top National News

Mortgage Demand Falls as Interest Rates Flatten

CNBC, Aug. 21, 2019--Diana Olick
Overall mortgage application volume decreased 0.9% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was still 70% higher annually, thanks to a stronger overall refinance market this year.

Fannie and Freddie Plan Is Likely Released Next Month

Wall Street Journal, Aug. 21, 2019--Andrew Ackerman (subscription)
The proposal comes more than a decade after the government seized the mortgage-finance firms to save them from collapse. It would likely seek to put the companies on a sounder financial footing and then release them from government control if Congress doesn't enact a more fundamental overhaul.

Fed Officials Viewed July Rate Cut as 'Recalibration' of Policy

Wall Street Journal, Aug. 21, 2019--Nick Timiraos (subscription)
Federal Reserve officials saw their move to cut interest rates last month as a "recalibration" rather than the start of a more aggressive easing cycle and were reluctant at their latest policy meeting to say how future moves would unfold.

Citigroup, Credit Suisse Re-Enter Risky Home Loans Market

Yahoo! Finance, Aug. 21, 2019
Citigroup C and Credit Suisse CS have re-entered the risky mortgage loans market or non-qualified mortgage, wherein they provide new home loans to borrowers with poor credit scores. However, per Mike Fratantoni, chief economist with the Mortgage Bankers Association, these non-QM loans are not like the Alt-A/subprime loans that were distributed prior to the housing crash.

Most Homeowners Underestimate Hurricane-Related Damage Costs

National Mortgage Professional, Aug. 21, 2019--Phil Hall
This year's hurricane season is now underway through November, and while there are no storms on the near-term horizon that should raise red flags, a new study by found many homeowners in high-risk states expressed either ignorance or nonchalance regarding the property damage costs of hurricanes.

RMBS Trustees Worry that Consent Process Will Slow Down Libor Switch

National Mortgage News, Aug. 21, 2019--Brad Finkelstein (subscription)
Trustees are concerned about obtaining proper consents from legacy residential mortgage-backed securities investors in a timely fashion in order to make the switch from Libor to another index, Fitch Ratings said.

Residential Finance News

July Existing Homes Post Modest Increase

Existing home sales increased in July, rebounding from a drop in June, the National Association of Realtors reported yesterday.

Black Knight First Look: July Prepayment Activity Hits Highest Level Since 2016

Black Knight, Jacksonville, Fla., said national delinquency rates fell in July as prepayment activity jumped to its highest level in nearly three years.

Commercial/Multifamily News

CRE Cap Rates Mostly Stable

A healthy balance of moderate growth, low inflation and falling long-term interest rates kept commercial real estate capitalization rates broadly stable in first-half 2019, said CBRE, Los Angeles.

Dealmaker: Greystone Provides $294M for Multifamily, Senior Housing Portfolios

Greystone, New York, originated $294.2 million in Freddie Mac and Fannie Mae financing for apartment and senior housing portfolios.

MBA News

MBA Risk Management, QA and Fraud Prevention Forum in Chicago Sept. 15-17

The Mortgage Bankers Association's Risk Management, QA and Fraud Prevention Forum takes place Sept. 15-17 at the Sheraton Grand Chicago.

Apply Now for MBA Path to Diversity Scholarship Program

The Path to Diversity Scholarship Program recognizes existing industry professionals who are seeking to advance their careers through continuing education. Recipients receive a voucher to cover course registration fees, up to a maximum of $2,000, for popular MBA Education courses and designation programs.

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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