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Volume 8 | Issue 45 | Tuesday, November 06, 2018

The Lede

 

Black Knight: Interest Rate Increases Cut Refinanceable Population by More than Half

Black Knight, Jacksonville, Fla., said recent 30-year fixed-rate mortgage loan interest rate increases has cut by more than half the number of American homeowners who could benefit from refinancing.

 

News & Trends

 
Third Quarter Homeownership Rate Edges Up

The Census Bureau yesterday reported the U.S. homeownership rate rose slightly in the third quarter, to 64.4 percent, from 64.3 percent in the second quarter and from 63.9 percent a year ago.

FHFA: Majority of GSE Credit Risk Shifts to Private Market

The Federal Housing Finance Agency said Fannie Mae and Freddie Mac have transferred nearly $2.5 trillion of credit risk to the private market since 2013.

South Dominates REO Markets

By one measure, Huntsville, Ala., is the real estate-owned capital of the country.

CMBS Delinquency Rate Reverses Direction

The commercial mortgage-backed securities loan delinquency rate reversed its consistent improvement in October, moving one basis point higher to 3.42 percent, reported Trepp, New York.

MBA News

 
MBA Accounting & Financial Management Conference in Orlando Nov. 12-14

The Mortgage Bankers Association's MBA Accounting & Financial Management Conference takes place in Orlando Nov. 12-14.

MBA National Mortgage Servicing Conference & Expo in Orlando Feb. 25-28

The Mortgage Bankers Association's National Mortgage Servicing Conference & Expo 2019 (Servicing19) returns to Orlando Feb. 25-28.

MBA Disaster Recovery Guide Available

The Mortgage Bankers Association has developed both English- and Spanish-language versions of Disaster Recovery: A Resource for Homeowners, a consumer-facing informational guide.

MBA Education Advanced Risk Management for Pros June 3-5 in D.C.

MBA Education presents its popular Advanced Risk Management for Mortgage Pros Workshop, in conjunction with the Robert H. Smith School of Business at the University of Maryland, in Washington, D.C. June 3-5.

Top National News

 
How Risk-Sharing Deals are Renewing the Fannie Mae, Freddie Mac Rivalry

National Mortgage News, Nov. 2, 2018--Bonnie Sinnock (subscription)
The fierce competition between Fannie Mae and Freddie Mac has largely taken a backseat to the myriad reforms enacted over the 10 years the mortgage giants have been in federal conservatorship. But the unique approach each company is taking with their credit-risk transfer products is quickly becoming a key point of differentiation with long-term implications.

FHA Commissioner Brian Montgomery: More Changes Ahead for Reverse Mortgages

HousingWire, Oct. 30, 2018--Jessica Guerin
Federal Housing Administration Commissioner Brian Montgomery said Tuesday the agency is working to address the volatility within the reverse mortgage program, hinting that the industry can expect more change ahead.

Zombie Foreclosures Fall with Housing Policy Support

National Mortgage News, Oct. 30, 2018--Elina Tarkazikis (subscrption)
Housing policies are helping the number of vacant foreclosure homes drop, which could also mean homebuyers have been taking advantage of these properties as inventory continues to be constrained.

Fannie Mae Reports Income of $4B in Third Quarter

HousingWire, Nov. 2, 2018--Alcynna Lloyd
Fannie Mae reported Friday it posted a comprehensive income of $4 billion in the third quarter, which was primarily driven by the company's business fundamentals.

Baby Boomers Are Living at Home. That's Bad News for Senior-Housing Developers

Wall Street Journal, Oct. 30, 2018--Esther Fung (subscription)
It seemed one of the surest bets in real estate: build senior-housing facilities that cater to aging baby boomers who will require more care. The problem is, boomers haven't much cooperated.

The Most Powerful Person in Mortgage Lending is About to be Replaced

HousingWire, Nov. 1, 2018--Jacob Gaffney
In two month's time, President Donald Trump will be able to replace Federal Housing Finance Agency Director Mel Watt, and there will also be new leadership at Fannie and Freddie. The represents a decisive opportunity for housing reform, something Trump has long supported.

Reverse Mortgage Market Closes Out October with Positive Gains

HousingWire, Nov. 5, 2018--Jessica Guerin
RMI President John Lunde said the numbers continue to point to a slow recovery for the HECM industry, which has seen volume nosedive this year thanks to program changes issued last October.

Affordable Jumbos: 40-Year Fixed Rate, Easy, Qualifying, Interest-Only for 10 Years

Orange County Register, Nov. 1, 2018--Jeff Lazerson
If affordability and qualifying are hurdles to a jumbo loan, there is some good news following a new report from CoreLogic that saw an 18 percent swan dive locally in year-over-year home sales. A new jumbo loan option eases borrowers into a permanent, fixed-rate mortgage by adding 10 years up front of lower interest-only payments, essentially making this a 40-year loan.

Can CRA be Moderninzed and Still Serve Its Original Purpose?

American Banker, Nov. 1, 2018--Rachel Witkowski (subscription)
Among the key objectives with the CRA reform effort is redefining geographic areas in which banks are evaluated. Those areas are traditionally based on physical branch networks, but the rapid shift to digital banking has prompted a rethink.

Goldman Sachs Chipping Away at $1.8B Mortgage Settlement Target

National Mortgage News, Nov. 2, 2018--Elina Tarkazikis
The bank, working to fulfill mortgage settlement agreements between the U.S. Department of Justice and three states, forgave a total of $78.7 million in principal on 746 first-lien mortgages since its last update on Aug. 1, for average principal forgiveness of $105,467 per loan and total reportable credit of $79.3 million after appropriate crediting calculations and multipliers were applied.

Mortgage-Bond Carnage Shows What the Future Holds Without Fed Help

Bloomberg, Nov. 2, 2018--Christopher Maloney
The bloodbath last month in the mortgage-bond market points to what the future may be like without Federal Reserve hand holding. Investors are now wondering if anyone will step in to stop the bleeding.

Private-Label RMBS on Track to Surge Again in 2019: Bank of America

National Mortgage News, Nov. 5, 2018--Bonnie Sinnock (subscription)
Although forecasts anticipate a continuing drop in overall originations, private-label residential mortgage-backed securitizations backed by newer loans are expected to keep increasing through next year, according to Bank of America.

What's Keeping Chief Risk Officers Up at Night

American Banker, Nov. 2, 2018--Kristin Broughton (subscription)
The banking industry's chief worriers have a lot to worry about these days. Whether it's increased competition from nonbank lenders, the rise of e-commerce and its impact on traditional bank clients or the uncertainty created by the pending shift to a new benchmark lending rate, risk executives and board members at big banks see no shortage of threats to their industry.

New Toys 'R' Us Owners Mull Physical Stores

Crain's Chicago Business, Nov. 2, 2018
The hedge funds that now own the Toys "R" Us brand plan to relaunch the toy retailer as a standalone operation next year. They will look to raise capital to help revive the chain, which closed its last stores at the end of June, and are making plans that include brick-and-mortar locations.

Lowe's to Close Nearly 50 Stores

Wall Street Journal, Nov. 5, 2018--Sarah Nassauer (subscription)
Lowe's Cos. Inc. said it would close nearly 50 stores as a new CEO seeks to boost sales by shedding less-profitable locations and focus spending elsewhere.

About Servicing 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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