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Volume 18 | Issue 33 | Tuesday, February 19, 2019

The Lede


MBA: 4Q Mortgage Delinquencies Drop to 18-Year Low

The Mortgage Bankers Association reported the delinquency rate for mortgage loans on one-to-four-unit residential properties fell in the fourth quarter to their lowest level since 2000, while foreclosure rates ticked up slightly.


Top National News

U.S. Mortgage Delinquencies Hit 18-Year Low in Q4 2018--MBA

Reuters, Feb. 15, 2019
U.S. homeowners who fell behind on their mortgage payments dropped to the lowest levels in 18 years in the final quarter of 2018, the Mortgage Bankers Association said on Friday.

Low Mortgage Rates Brighten Homebuilder ETFs' Outlook

Nasdaq, Feb. 15, 2019--Sweta Killa
According to the Mortgage Bankers Association Builder Application Survey, mortgage applications for new home purchases remained unchanged in January from the year-ago month and increased 43% from December. After two lackluster months, new home sales surged almost 30% last month to the fastest pace since the survey began in 2013.

Amazon's Pivot Raises Scrutiny of Incentive Deals

Wall Street Journal, Feb. 15, 2019--Valerie Bauerlein, Kate King, Cameron McWhirter (subscription)
The collapse of Inc.'s plan to build a second headquarters in New York City has the potential to damp some states' willingness to offer tax breaks. Spurred by Amazon's second-headquarters selection process, politicians and groups long opposed to incentive packages have launched legislative efforts to prohibit them in some states.

Mel Watt Attempted to 'Coerce' Relationship While FHFA Director, IG Report Says

Washington Post, Feb. 15, 2019--Renae Merle
Former congressman Mel Watt misused his position as director of the Federal Housing Finance Agency by attempting to "coerce or induce" a relationship with a female employee seeking a promotion, according to a previously unreleased inspector general's report. Watt has denied the allegations.

Echoes of the Subprime Era in Energy Efficiency Lending

Los Angeles Times, Feb. 17, 2019--Andrew Khouri
As stories piled up of homeowners beig smooth-talked into taking home improvement loans they couldn't afford, defenders of the PACE program cited its safety features. But some contractors apparently dance around those rules, as shown by the recent collapse of two firms.

Why PACE Has Become a 'Second-Look' Product in California

National Mortgage News, Feb. 15, 2019--Allison Bisbey (subscripition)
The state's tougher oversight has stripped Property Assessed Clean Energy of its go-to project financing status among contractors. That shift may result in adverse selection.

HomeStreet Bank Moves to Sell Off Entire Mortgage Business

HousingWire, Feb. 15, 2019--Ben Lane
After struggling to keep up with the mortgage business' new reality of lower refinance originations due to higher mortgage interest rates, HomeStreet Bank announced Friday that it is plotting a mass exodus from the mortgage business.

Is the Ellie Mae Buyout a Sign of More to Come?

Mortgage Media, Feb. 15, 2019--S.A. Ibrahim
Are we going to see more deals, particularly when private equity companies are flush with cash? As with any such questions, it is fun to speculate on what comes next.

Arch Reported $121M Net Income

The Mortgage Leader, Feb. 18, 2019
Arch Capital Group Ltd. reported net income of $126.1 million, or $0.31 per share, a 5.9% annualized return on average equity, compared to $203.5 million, or $0.49 per share, for the 2017 fourth quarter.

Odd Parcels: VA, Women, Affordability

UExpress, Feb. 15, 2019--Lew Sichelman
To protect borrowers with VA-guaranteed mortgages against churning by less-than-scrupulous lenders, the Department of Veterans Affairs has taken steps to make it more difficult to refinance loans that are all but brand new.

Residential Finance News

MBA Advocacy Update

Congressional leaders finalized a spending bill compromise Thursday that included a revised funding mix for border security--and nine Cabinet departments and dozens of other agencies, including HUD, through September 30. President Trump signed the legislation, which removes the immediate threat of another government shutdown.

MBA Offers Recommendations to VA on Loan ‘Churning'

The Mortgage Bankers Association, in a Feb. 15 letter to the Veterans Administration, offered recommendations intended to strengthen an interim rule aimed at deterring loan "churning" against servicemembers and addressing serious implementation issues and operational challenges MBA believes VA needs to address surrounding new borrower disclosures.

MISMO Appoints Six Executives to Board of Directors; Appoints Kurt Pfotenhauer Board Chair

The Mortgage Bankers Association, parent corporation of MISMO, the mortgage industry standards organization, appointed seven new members and a new chairperson to the MISMO Board of Directors.

The Week Ahead

The Mortgage Bankers Association's National Mortgage Servicing Conference & Expo 2019 (Servicing19) is less than a week away, taking place in Orlando Feb. 25-28.

Commercial/Multifamily News

MBA Chart of the Week: Current Unpaid Principal Balance of Non-Bank Commercial/Multifamily Loans

A decade ago, MBA began collecting information on volume of commercial and multifamily mortgages, held by non-bank lenders, maturing over the coming years. This week's chart, using data from our CREF Database, combines the results of multiple years' surveys and provides a timeline of the changing nature of the market.

Single-Family Rental: Opportunities in 'Horizontal Multifamily'

SAN DIEGO--By some measures more Americans live in single-family rental properties than in multifamily apartment properties and the sector is poised for further growth, analysts said here at the recent MBA CREF/Multifamily Housing Convention & Expo.

Dealmaker: JLL Secures $280M To Refinance Empire Stores in Brooklyn

JLL, Chicago, secured $280 million for Midtown Equities and HK Organization to refinance Empire Stores, a newly redeveloped retail and office building in Brooklyn, N.Y.

MBA News

MBA National Secondary Market Conference & Expo May 19-22

The Mortgage Bankers Association's National Secondary Market Conference & Expo returns to the New York Marriott Marquis May 19-22.

MBA Education Advanced Servicing Workshop in Orlando Feb. 25

MBA Education presents its Advanced Servicing One-Day Workshop on Monday, Feb. 25 at the MBA National Mortgage Servicing Conference & Expo in Orlando, Fla.

MBA Compliance Essentials UDAAP & FTC MAP Rule Resource Guide Available

The MBA Compliance Essentials program offers a new Resource Guide: Unfair, Deceptive, or Abusive Acts and Practices (UDAAP) & FTC Mortgage Acts and Practices Advertising (MAP) Rule.

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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