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Volume 18 | Issue 170 | Wednesday, September 04, 2019

The Lede

 

MBA Study: Modest Growth Anticipated in Home Equity Lending

Home equity loan debt outstanding and borrower utilization rates declined in 2018, and mortgage lenders anticipate mixed activity this year and only modest increases in originations in 2020, the Mortgage Bankers Association reported yesterday.

 

Top National News

 
Lenders See Mortgage Profits Skyrocket to Highest Levels in Three Years

Houston Chronicle, Sept. 3, 2019--R.A. Schwartz
As low mortgage rates have driven a surge in refinances, lenders have seen their profits on mortgage underwriting skyrocket, the Mortgage Bankers Association reported.

Survey: Expect the Fed to Cut Rates at Least Two More Times This Year

Bankrate.com, Sept. 4, 2019--Sarah Foster
"Job openings remain at high levels and the unemployment rate is low," says Mike Fratantoni, chief economist at the Mortgage Bankers Association. "But while the job market is currently very healthy, we expect that overall economic growth will slow in 2020."

Ready to Refi? Expect It to Take Some Time

WTOP (Washington, D.C.), Sept. 3, 2019--Jeff Clabaugh
"On average, the industry is taking anywhere from 40 to 60 days for an application to close," said Joel Kan of the Mortgage Bankers Association. "Our estimate is for high volume to close in the third quarter with some of that being pushed into the fourth quarter just because of the high volume of applications we're seeing come in right now."

Mortgage Lenders' Tolerance of High DTIs May Not Get Much Higher

National Mortgage News, Sept. 3, 2019--Bonnie Sinnock (subscription)
More loans with high debt-to-income ratios were approved last year, but a lot were denied as well, which suggests lenders' willingness to underwrite them may have its limits.

Has Removing Tax Lien Data from Credit Records Led to More Bad Loans?

American Banker, Sept. 3, 2019--Penny Crosman (subscription)
A year ago, the three major credit bureaus - Equifax, Experian and TransUnion - stopped including public information about unpaid taxes and court debts in consumers' credit reports. A year later, some say the absence of this data is contributing to poor lending decisions.

Overseas Investors Unload U.S. Real Estate

Wall Street Journal, Sept. 3, 2019--Esther Fung (subscription)
Amid a maturing property market cycle and rising uncertainties in geopolitics and the global economy, foreign investors have sold more U.S. commercial real estate than they bought in a quarter for the first time since 2013.

U.S. Manufacturing Gauge Contracts for First Time in Three Years

Bloomberg, Sept. 3, 2019--Reade Pickert
The Institute for Supply Management's purchasing managers index fell to 49.1 in August, weaker than all forecasts in a Bloomberg survey of economists, data released Tuesday showed. Figures below 50 indicate the manufacturing economy is generally shrinking. The group's gauge of new orders dropped to a more than seven-year low, while the production index hit the lowest since late 2015.

Residential Finance News

 
Mortgage Applications Dip Again in MBA Weekly Applications Survey

Mortgage applications fell again from one week earlier despite another decrease in mortgage interest rates, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending August 30.

MISMO Releases New Industry Loan Application Dataset

MISMO®, the mortgage industry standards organization, released its new Industry Loan Application Dataset, a compendium of data points included in the new Uniform Residential Loan Application--the government-sponsored enterprises' new Automated Underwriting System interfaces, as well as the existing Fannie Mae 3.2 file.

CoreLogic: Home Price Appreciation Picking Up

CoreLogic, Irvine, Calif., released its Home Price Index and HPI Forecast for July, which showing home prices rose both year over year and month over month.

Commercial/Multifamily News

 
Tracking Potential Multifamily Risks

Multifamily fundamentals remain healthy, demonstrated by record second quarter absorption. But the sector faces some threats, analysts said.

Dealmaker: Berkadia Completes $33M Sale; Secures $27M for Michigan Multifamily

Berkadia completed the sale of and secured financing for Hillside Forest, a garden-style multifamily property in Oakland County, Mich.

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 Education School of Mortgage Banking I Courses

MBA Education presents its popular School of Mortgage Banking Course I this summer and fall.

MBA Education/Compliance Essentials Managing the Risks of CFPB and State Examinations Sept. 15

MBA Education and Compliance Essentials present a workshop, Managing the Risks of CFPB and State Examinations, on Sunday, Sept. 15 at the Sheraton Grand Chicago, in conjunction with the MBA Risk Management, QA and Fraud Prevention Summit.

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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One Voice. One Vision. One Resource. The Mortgage Bankers Association  (MBA) is the national association representing the entire real estate finance industry. For more information visit us at mba.org.