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Volume 18 | Issue 132 | Wednesday, July 10, 2019

The Lede


House Passes MBA-Supported VA Securitization, Financial Literacy Bills

The House approved two bills yesterday, strongly supported by the Mortgage Bankers Association, which clarify when Department of Veterans Affairs home loans qualify to be pooled into Ginnie Mae securities, and offered recommendations to legislation that would increase access to housing counseling for consumers.


Top National News

Fed Chairman Jerome Powell's Approach to Interest-Rate Policy Wins Bipartisan Backing

Wall Street Journal, July 9, 2019--Nick Timiraos (subscription)
President Trump's relentless public criticism of the man he picked to run the Federal Reserve, Jerome Powell, isn't broadly shared by lawmakers who confirmed the central bank leader to his post last year.

What to Expect When You're Expecting a Report on GSE Reform

American Banker, July 9, 2019--Hannah Lang (subscription)
Recent expectations have grown that the Trump administration may prepare aggressive action to end the conservatorships of Fannie Mae and Freddie Mac, but some mortgage policy observers are speculating that a much-anticipated Treasury Department report on housing finance reform plans could be short on details.

VA Loan Churning is Driving Up Mortgage Costs for All Government Borrowers

HousingWire, July 9, 2019--Jessica Guerin
The Urban Institute recently released a study asserting that fast prepayments as a result of churning is driving up rates on all government mortgages by seven basis points, or 0.07%.

Government Bond-Market Measure Says Recession Risk Growing

Wall Street Journal, July 9, 2019--Daniel Kruger (subscription)
The yield on short-term Treasurys has been higher than on long-term notes for more than 30 consecutive trading sessions, a sign that investors are concerned about the durability of the decadelong economic expansion.

Federal Banking Regulators Finalize Changes to Capital Rules

American Banker, July 9, 2019--Jon Prior (subscription)
The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Federal Reserve finalized a plan Tuesday to ease certain capital rules but are taking more time on a part of the proposal tied to commercial real estate lending.

Potential Homeowners Willing to Work Second Job in Pursuit of Property

National Mortgage Professional, July 9, 2019--Phil Hall
Most aspiring homeowners are willing to take on a side job and cut back on their living expenses in order to achieve their property goals, according to a new survey from Wells Fargo.

Some High DTI Loans Could be Qualified Mortgages After Patch Ends: CRL

National Mortgage News, July 9, 2019--Brad Finkelstein (subscription)
After the government-sponsored enterprise patch expires, "near prime" loans over the 43% debt-to-income ratio should be qualified mortgages if they have compensating factors, according to a new Center for Responsible Lending report.

Housing Supply and Buyer Demand is Pushing Buyers Out of the Market

HousingWire, July 9, 2019--Alcynna Lloyd
The U.S. median listing price reached its annual peak earlier than expected thanks to a mismatch of available inventory and buyer demand. This discrepancy has led the company to warn of an impending market shift that could affect homebuyers well into next year.

Declining U.S. Job Openings Point to Cooling Labor Market

Reuters, July 9, 2019--Lucia Mutikani
U.S. job openings fell in May, pulled down by declines in the construction and transportation industries, potentially flagging a slowdown in employment growth in the months ahead.

Residential Finance News

June Mortgage Credit Availability Up

Mortgage credit availability increased in June, according to the Mortgage Bankers Association's Mortgage Credit Availability Index.

Mortgage Applications Down in MBA Weekly Survey

Mortgage applications decreased during a holiday-shortened week, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending July 5. Survey: Western Markets At Most Risk for Increased Foreclosure Inventory, Irvine, Calif., said although most respondents to a recent survey expect only "slight" changes in foreclosures and bank-owned inflow in the second half of 2019, nearly half cited the Western U.S. as the highest risk of increase in distressed inventory.

Commercial/Multifamily News

Office Sector 'Sluggish' Despite Economic Growth

Last week the U.S. economy entered its longest expansion in history. Yet the office market remains "sluggish," noted Reis Chief Economist Victor Calanog.

Dealmaker: Regency Centers Acquires The Pruneyard Shopping Center

Regency Centers Corp. acquired 258,000 square feet of Silicon Valley retail space within The Pruneyard mixed-use project for $212.5 million.

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.

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.

mPact: MBA's Network for Young Professionals

mPact is MBA's network for young professionals in the real estate finance industry. Join a community of your peers, share your experiences with others online, network with industry insiders, hone your skills or have a voice in the future of real estate finance.

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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