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Volume 18 | Issue 24 | Tuesday, February 05, 2019

The Lede


GSEs Push for Greater Efficiencies in Mortgage Process

SAN FRANCISCO--These are not quiet times for Fannie Mae and Freddie Mac.


Top National News

GSE Reform, CFPB Underwriting Rule are on Collision Course

American Banker, Feb. 4, 2019--Kate Berry (subscription)
The White House and Senate Banking Committee are pursuing parallel tracks to end the GSEs' federal conservatorships. Any resulting plan must deal with whether GSE-backed mortgages are still exempt from the Consumer Financial Protection Bureau's Qualified Mortgage rule. "Not doing something to extend the patch would be highly disruptive," said Bob Broeksmit, the president and CEO of the Mortgage Bankers Association.

Broeksmit at IMB: 'Working to Benefit the Entire Ecosystem'

Mortgage Media, Feb. 4, 2019
Talking with Mortgage Media's SA Ibrahim at the MBA Independent Mortgage Bankers conference in San Francisco last week, MBA President and CEO Bob Broeksmit, CMB, said when he took the reins of the Mortgage Bankers Association five months ago, he knew it was a pivotal time for the industry.

The Average Adjustable-Rate Mortgage is Nearly $700,000. Here's What that Tells Us

MarketWatch, Feb. 4, 2019--Andrea Riquier
That data point, courtesy of the Mortgage Bankers Association, is a reminder--perhaps an uncomfortable one--that the mortgage industry must still offer products that make it artificially affordable to get people in the door, with the intention of refinancing later.

IRS Offers New Rules and 'Safe Harbors' for Pass-Through Deductions

National Real Estate Investor, Feb. 04, 2019--Beth Mattson-Teig
One of the big windfalls for real estate professionals in the 2017 Tax Cuts and Jobs Act is the opportunity to take up to a 20 percent deduction of income from pass-through entities. But some uncertainty clouding the picture may be taking some of the wind out of the sales of that enthusiasm.

FICO Scores and Mortgage Rates

Washington Post Writers Group, Feb. 4, 2019--Kenneth Harney
A new statistical review, conducted for this column by mortgage network Lending Tree--based on more than 1 million actual loan offers during 2018--suggests that, depending on market conditions, a "good" 700 FICO score could get you nearly as attractive a rate deal as someone with an 800-plus score.

New York Regulators Reject Fidelity's Acquisition of Stewart

National Mortgage News, Feb. 4, 2019--Brad Finkelstein (subscription)
The New York Department of Financial Services disapproved the merger between Fidelity National Financial and Stewart Information Services, regulatory filings from both title insurance underwriters said.

Mr. Cooper Acquires Pacific Union Financial

HousingWire, Feb. 4, 2019--Ben Lane
Mr. Cooper, the nonbank formerly known as Nationstar Mortgage, has now finalized its acquisition of Pacific Union Financial.

Federal Reserve Survey Shows Tighter Lending Standards, Weakening Credit Demand

Wall Street Journal, Feb. 4, 2019-Paul Kiernan (subscription)
A growing minority of banks reported tightening their standards for some loans in the fourth quarter and said they expected loan demand and performance to weaken, the Federal Reserve said Monday.

HGTV Shows Like 'Fixer Upper' Spur Demand for Home Renovation Loans

National Mortgage News, Feb. 4, 2019--Paul Centopani (free article)
Popular TV shows about house fixers and flippers have sparked consumer interest in remodeling, creating an opportunity for lenders to build a specialty in renovation loans while traditional mortgage lending is weak.

Residential Finance News

Black Knight: Foreclosure Rate, Inventory End 2018 Below Pre-Recession Averages

Black Knight, Jacksonville, Fla., said all four major performance metrics in its Mortgage Monitor Report--delinquencies, serious delinquencies, active foreclosures and total non-current inventory--ended the year below 2000-2005 pre-recession averages for the first time since the financial crisis.

Zillow: More than Third of Home Buyers Make More Than $100,000

Home buyer incomes have pulled ahead of homeowner income, and remain more than double that of renters, said Zillow Inc., Seattle.

Migration Trend Reaches Record High; One in Four People Searching for Home Looks to Change Metros

Twenty-five percent of home searchers looked to move to another metro area in the fourth quarter, up from 23 percent the year before, said Redfin, Seattle. A separate report from Trulia, San Francisco, said migration patterns to warmer climates continue as Baby Boomers seek a respite from harsh winters.

Residential Briefs

Ginnie Mae announced it restricted Department of Veterans Affairs single-family guaranteed loans pooled by loanDepot in Ginnie Mae pools to Ginnie Mae II custom pools only and removed the previously announced restriction limiting Freedom Mortgage Corp. to Ginnie Mae II custom pools for VA single-family guaranteed loans, effective March 1.

Commercial/Multifamily News

Big Box Store Cap Rates Increase as Sector Evolves

Single-tenant net lease big box store cap rates increased 29 basis points between year-end 2017 and year-end 2018 to 7.04 percent, reported Boulder Group, Northbrook, Ill.

Dealmaker: Bellwether Enterprise Secures $97M

Bellwether Enterprise Real Estate Capital LLC, Cleveland, secured $97.3 million for apartment, retail and assets in Virginia and Ohio.

MBA News

MBA National Mortgage Servicing Conference & Expo in Orlando Feb. 25-28

The Mortgage Bankers Association's National Mortgage Servicing Conference & Expo 2019 (Servicing19) returns to Orlando Feb. 25-28.

MBA Education School of Mortgage Banking I in D.C. Feb. 12-15

MBA Education presents its popular School of Mortgage Banking Course I Feb. 12-15 at MBA headquarters in Washington, D.C.

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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