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Volume 18 | Issue 133 | Thursday, July 11, 2019

The Lede


MBA: June New Home Purchase Applications Down From May, Up 18% from Year Ago

The Mortgage Bankers Association Builder Application Survey data for June show mortgage applications for new home purchases fell by 14 percent from May, but rose by nearly 18 percent from a year ago.


Top National News

Weekly Mortgage Applications Fall 2.4% as Consumers Shrug Off Low Rates

CNBC, July 10, 2019--Diana Olick
Mortgage demand has been more than muted for the last several weeks, even as rates sit near two-year lows. Mortgage application volume fell 2.4% for the week last week, according to the Mortgage Bankers Association's seasonally adjusted index.

Legislation Clarifies Securitization Timeline for VA Loans

Scotsman Guide, July 10, 2019--Arnie Aurellano
A bill approved this week by the House clarifies when mortgages backed by the U.S. Department of Veterans Affairs qualify to be pooled into Ginnie Mae securities.The Mortgage Bankers Association sent a letter to House leadership ahead of the vote on the bill, urging its passage.

New Bill Slashes FHA Mortgage Insurance for First-Time Homebuyers

HousingWire, July 10, 2019--Jessia Guerin
The House of Representatives passed a bill Tuesday that slashes the cost of upfront mortgage insurance for first-time homebuyers using mortgages backed by the Federal Housing Administration. The Mortgage Bankers Association applauded the bill's passage. "MBA has long advocated for increased access to housing counseling as a means to provide a more positive experience for first-time homebuyers unfamiliar with the homeownership process, as well as for other underserved communities," MBA said.

Mortgage Credit Availability Increased Again Last Month

Mortgage Professional America, July 10, 2019--Steve Randall
The Mortgage Bankers Association's Mortgage Credit Availability Index gained 0.2% month-over-month to a reading of 189.8.

Jerome Powell Says Outlook Hasn't Improved in Recent Weeks, Setting Stage for Rate Cut

Wall Street Journal, July 10, 2019--Nick Timiraos, Paul Kiernan (subscription)
Federal Reserve Chairman Jerome Powell sent a strong signal Wednesday the central bank could cut interest rates later this month by highlighting how the economic outlook hasn't improved in recent weeks.

Many Indebted Borrowers Consider Mortgages Out of Reach: Wells Fargo

National Mortgage News, July 10, 2019--Bonnie Sinnock (subscription)
Nearly two-thirds of consumers think they must be debt-free to get home financing when in fact they can have debt-to-income levels as high as 43% or greater, according to Wells Fargo.

Fed Minutes Show Many Saw a Stronger Rate-Cut Case

Bloomberg, July 10, 2019--Christopher Condon
Federal Reserve officials judged uncertainties and downside risks to the outlook for the U.S. economy had increased significantly when they gathered in June, strengthening the case for an interest-rate cut, according to the minutes of the June 18-19 Federal Open Market Committee released Wednesday in Washington.

Most Renovating Homeowners Not Tapping HELOCs

National Mortgage Professional, July 10, 2019--Phil Hall
Nearly half of homeowners are planning a property renovation in the next two years, but only one-quarter will finance it with a home equity line of credit, according to new data from TD Bank.

HomeLight Acquires Digital Mortgage Startup Eave, Expands into Mortgage Lending

HousingWire, July 10, 2019--Ben Lane
HomeLight, an online real estate platform that uses data and technology to connect home sellers with buyers and real estate agents, is getting into the mortgage business, following in the path blazed by companies such as Zillow, Redfin and Opendoor.

Don't Look Now, But Home Equity Delinquencies are Rising

American Banker, July 10, 2019--Andy Peters (subscription)
The economy remains strong and Americans hold trillions of dollars in equity in their homes. So why are delinquencies tied to home equity products on the rise?

Residential Finance News

MBA Promotes Lisa Haynes to Senior Vice President, CFO and Chief Diversity/Inclusion Officer

The Mortgage Bankers Association announced promotion of Lisa J. Haynes to Senior Vice President, Chief Financial Officer and Chief Diversity and Inclusion Officer.

Quicken: Owner Perceptions of Home Values Improve for 2nd Straight Month

Quicken Loans, Detroit, said the average home appraisal in June was 0.71% lower than owners' estimates, according to its National Home Price Perceptions Index.

Mortgage Payments Within Reach for High School Grads in Most Cities; Down Payments, Not So Much

The good news is, households including at least one person with a high school diploma or GED can afford the typical mortgage payment in most large metro areas across the U.S., said Zillow Inc., Seattle. But soaring home values that have outpaced incomes have made down payments a barrier for many, particularly first-time home buyers.

Fannie Mae: Housing Confidence Dips Slightly

Fannie Mae, Washington, D.C., reported its Home Purchase Sentiment Index fell by 0.5 points in June to 91.5 after nearing its survey high last month.

Commercial/Multifamily News

Commercial/Multifamily Briefs

The clock is ticking if you wish to maximize the Opportunity Zone program's advantages, said Cushman & Wakefield.

Dealmaker: Douglas Emmett, QIA Acquire The Glendon for $365M

Douglas Emmett Inc. and the Qatar Investment Authority paid $365 million for The Glendon, a large mixed-use development in Los Angeles' Westwood Village neighborhood.

MBA News

MBA Annual19 Comes to Austin, Texas Oct. 27-30

The Mortgage Bankers Association's Annual Convention & Expo takes place Oct. 27-30 at the Austin Convention Center in Austin, Texas.

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 Education, California MBA Present Fundamentals of Residential Lending & the Secondary Market in San Francisco July 15

MBA Education and the California Mortgage Bankers Association present a special one-day workshop, Fundamentals of Residential Lending and the Secondary Market, on Monday, July 15 at the Westin St. Francis Hotel in San Francisco in conjunction with the California MBA Western Secondary Market Conference.

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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