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Volume 18 | Issue 111 | Monday, June 10, 2019

The Lede

 

MBA Advocacy Update

President Donald Trump signed a $19.1 billion disaster aid bill last week that included an extension of the National Flood Insurance Program until September 30. Also, the the GSEs began issuance of the new Uniform Mortgage-Backed Security.

 

Top National News

 
Mortgage Lending More Profitable for Independent Lenders

Mortgage Professional America, June 7, 2019--Steve Randall
A survey by the Mortgage Bankers Association found a reported net gain of $285 for every loan originated in Q1 2019, compared to a net loss of $200 per loan in the previous quarter.

To Stop Robocalls, Parties Need to Understand Who Is a Robocaller

Wall Street Journal, June 9, 2019--Sara Krouse (subscription)
America's telecommunications regulator passed rules last week that will let phone companies automatically block more robocalls. It hasn't yet said what, exactly, constitutes such a call.

FHA is Increasing Lending to Riskier Borrowers

HousingWire, June 7, 2019--Ben Lane
According to the FHA's quarterly report for its fiscal second quarter, the average credit score for an FHA borrower fell to 665 in the second quarter. That's the lowest level since 2008, and is "well below" the FHA lending peak credit score of 703, which happened in 2011.

Rewrite of Bank Rules Makes Little Progress, Frustrating Republicans

Wall Street Journal, June 10, 2019--Andrew Ackerman, Gabriel T. Rubin (subscription)
Trump-appointed regulators came into office saying they would pare back Wall Street's postcrisis rulebook. More than two years into the administration's tenure, most of the work remains unfinished, particularly for the biggest banks.

Mnuchin Dashes Investor Dreams of Quick Fannie-Freddie Windfall

Bloomberg, June 10, 2019--Saleha Mohsin, Austin Weinstein
Treasury Secretary Steven Mnuchin made clear that freeing Fannie Mae and Freddie Mac from U.S. control won't happen without a major overhaul of the nation's housing finance system, potentially dashing investors' hopes that they might soon make a windfall from their stakes in the mortgage giants.

Can Fannie, Freddie be Overhauled Without Congress?

National Mortgage News, June 7, 2019--Hannah Lang (subscription)
The Trump administration has said it welcomes legislative reform to fundamentally restructure Fannie Mae and Freddie Mac. But the Federal Housing Finance Agency has also made clear that it stands willing to do the heavy lifting itself.

New Spotlights Shine on Homeownership Disparities

National Mortgage Professional, June 7, 2019--Phil Hall
NeighborWorks America has released a study that found a continued disparity in homeownership rates for African-American and Hispanic households. The study noted that while two-thirds of the general population own their home and one-in-four rent their home, the gap between owning and renting is much closer for African-Americans and Hispanics: 49 percent own their own home and 40 percent rent.

Construction Miscues and Mishaps

UExpress, June 7, 2019--Lew Sichelman
According to Paul Thomas, national risk manager at 2-10 Home Buyers Warranty, an average of only 1 percent of all new houses suffer a major structural defect over their first 10 years.

Why Tier 2 Cities Have Real Estate Buyers' Attention

Forbes, June 7, 2019--Evan Gentry
Commercial real estate opportunities are flourishing outside of the largest U.S. metros. Investors exploring Memphis, Phoenix or Salt Lake City, among other cities in the Tier 2 real estate market, can earn strong returns by developing or purchasing and repositioning older properties.

Residential Finance News

 
Hiring Slows in May; Unemployment Remains at 50-Year Low

The economy slowed more than expected during May with 75,000 new jobs created compared to 224,000 in April, the Bureau of Labor Statistics reported Friday.

1Q Negative Equity Share Falls to 4.1%

CoreLogic, Irvine, Calif., said 17,000 residential properties regained equity in the first quarter, bringing the total number of mortgaged homes in negative equity to 2.2 million, or 4.1 percent of all mortgage properties.

The Week Ahead

The Mortgage Bankers Assocation releases its Quarterly Commercial/Multifamily Delinquency Report today, June 10; its monthly Mortgage Credit Availability Index this Tuesday, June 11; and its Weekly Applications Survey this Wednesday, June 12; and its monthly Builder Applications Survey this Thursday, June 13.

Commercial/Multifamily News

 
1Q Commercial, Multifamily Mortgage Delinquencies At Record Lows

Commercial and multifamily mortgage delinquencies fell to near-record lows in the first quarter, the Mortgage Bankers Association reported.

MBA Chart of the Week: Transition from LIBOR

The vast majority of commercial and multifamily mortgage lenders report they are working on the transition away from LIBOR, but the devil is in the details. Most firms are already taking steps, but they also report relying on regulators and industry bodies to make decisions before they take certain actions.

Dealmaker: Newmark Realty Capital Arranges $76M

Newmark Realty Capital, San Francisco, arranged $75.6 million in permanent and construction financing for Washington retail and industrial assets.

MBA News

 
MBA Condominium Lending Workshop in D.C. July 18

The Mortgage Bankers Association's annual Condominium Workshop takes place Thursday, July 18 at the Marriott Marquis in Washington, D.C.

CREF Market Intelligence Symposium in New York July 10-11

The Mortgage Bankers Association CREF Market Intelligence Symposium cuts through the clutter to provide hard facts about the state of commercial real estate markets--what we do and don't know.

MBA Virtual Vendor Marketplace June 12

The Mortgage Bankers Association's inaugural Virtual Vendor Marketplace takes place Wednesday, June 12 from 2:00-3:30 p.m. ET.

About MBA Newslink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem jmechem@mba.org

Editor: Mike Sorohan 202/557-2855 msorohan@mba.org 

Editorial Director: Michael Tucker 202/557-2851 mtucker@mba.org 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856 lhall@mba.org

Advertising Opportunities: Bill Farmakis 203/834-8832 bill@jlfarmakis.com

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