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Volume 18 | Issue 137 | Wednesday, July 17, 2019

The Lede


MBA Nominates Kristy Fercho as MBA 2020 Vice Chair

The Mortgage Bankers Association nominated Kristy Fercho, Executive Vice President and President of Mortgage with Flagstar Bank, Troy, Mich., to serve as MBA Vice Chairman for the 2020 membership year.


Top National News

Fed Interest Rate Cuts to Usher in New Era for Home Buyers

The Mortgage Reports, July 16, 2019--Erik J. Martin
A Fed rate cut is expected this year, even as early as July 31. That means mortgage interest rates should drop, making it more affordable to buy a home.

Lawmakers Unveil Competing Flood Insurance Bill

National Mortgage News, July 16, 2019--Hannah Lang (subscription)
The bill is sponsored by three senators, Bob Menendez, D-N.J., John Kennedy, R-La., and Bill Cassidy, R-La., and several members of the House, including Reps. Frank Pallone, D-N.J., and Bill Pascrell, D-N.J. It would take further steps to ensure that flood insurance is kept affordable while improving technology to combat flood risks, the lawmakers said during a press conference Tuesday.

FDIC Plan Would Ease Requirement for Banks Selling Mortgage Securities

Wall Street Journal, July 16, 2019--Lalita Clozel (subscription)
The Federal Deposit Insurance Corp. on Tuesday released a plan that would ease disclosure requirements implemented in 2010 after the financial crisis that discouraged banks from packaging and reselling mortgage-backed securities, a nearly $10 trillion market.

Former Freddie Mac CEO Says GSEs Should Be Regulated Like Utilities

HousingWire, July 16, 2019--Kathleen Howley
Two weeks into his new gig as a senior fellow at Harvard University's Joint Center for Housing Studies, Donald Layton, who was the CEO of Freddie Mac until the end of June, is speaking out--in favor of regulation.

Quicken Celebrates Record-Shattering Q2

National Mortgage Professional, July 16, 2019
Quicken Loans said the second quarter marked the company's best quarter in its 34-year-old history.

Goldman Sachs Reports Lower Profit, Revenue

Wall Street Journal, July 16, 2019--Liz Hoffman (subscription)
Goldman Sachs Group Inc.'s quarterly profit fell 6% as the cost of the Wall Street bank's pivot toward Main Street began to weigh.

KeyCorp Discloses $90M Exposure from Suspected Fraud

American Banker, July 16, 2019--Paul Davis (subscription)
KeyCorp in Cleveland warned that it faces $90 million in exposure to a client suspected of committing fraud.

Lack of Affordable Housing is Fueling a Reverse Migration from Big Cities

Washington Post, July 16, 2019--Michele Lerner
While the lack of listings continues to plague some housing markets, affordability is the biggest issue for renters, first-time buyers and move-up buyers. The search for affordable housing is driving a new migration pattern as today's financial woes push people from high-cost coastal cities to the middle of the country and the South.

Residential Finance News

Mortgage Applications Down Again in MBA Weekly Survey

Mortgage applications fell again last week as mortgage rates rose, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending July 12.

July Builder Confidence Rises One Point

Builder confidence in the market for newly built single-family homes rose one point to 65 in July, the National Association of Home Builders reported yesterday, marking the sixth consecutive month that sentiment levels have held at a steady range in the low- to mid-60s.

Ellie Mae: Time to Close Refinances Spikes for Millennials

Ellie Mae, Pleasanton, Calif., said time to close a refinance for Millennials in May took six days longer than in April, as lower rates resulted in increased refinance activity.

Commercial/Multifamily News

Life Insurers' CRE Mortgage Exposure Grows

Fitch Ratings, New York, said U.S. life insurers' exposure to mortgages increased to nearly 13 percent of invested assets at year-end 2018, up from 12.4 percent a year ago.

Dealmaker: Prologis to Acquire Industrial Property Trust in $3.9B Transaction

Prologis, San Francisco, agreed to purchase Industrial Property Trust from Denver investment manager Black Creek Group for $3.99 billion.

MBA News

MBA Regulatory Compliance Conference 2019 in Washington Sept. 22-24

The Mortgage Bankers Association's annual Regulatory Compliance Conference takes place Sept. 22-24 at the Grand Hyatt in Washington, D.C. Early registration deadline is Monday, Aug. 12.

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.

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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