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Volume 9 | Issue 16 | Tuesday, April 23, 2019

The Lede


MBA Report: IMB 2018 Profits Dip

Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $367 on each loan they originated in 2018, down from $711 per loan in 2017, the Mortgage Bankers Association reported last week.


News & Trends

Situs RERC: Declining Investment Conditions for Many Property Types

More signs point to a possible commercial real estate downturn in the next 12 months or so, said Situs RERC, Houston.

Black Knight: Prepayments Surge on Lower Interest Rates; Seasonal Delinquency Rate Improvement Remains Muted

Black Knight, Jacksonville, Fla., said mortgage prepayment activity increased by 28% month-over-month in March, the largest single-month increase since 2016, in response to declining interest rates and the start of the spring home buying season.

CMBS Supply-Demand Fundamentals Steady; Special Servicing Falls

Commercial property market supply and demand fundamentals remained stable in late 2018, Moody's Investors Service reported.

MBA News

MBA Legal Issues & Regulatory Compliance Conference in New Orleans May 5-8

The Mortgage Bankers Association's Legal Issues & Regulatory Compliance Conference takes place May 5-8 at the Hyatt Regency New Orleans.

MBA National Secondary Market Conference & Expo May 19-22

The Mortgage Bankers Association's National Secondary Market Conference & Expo returns to the New York Marriott Marquis May 19-22.

Top National News

Lenders Manage Tiny Profits in 2018 Despite Rate Hikes, Inventories

Mortgage News Daily, Apr. 18, 2019--Jann Swanson
The Mortgage Bankers Association said banks responding to its survey made an average profit of $367 on each loan they originated last year, down from $711 per loan in 2017.

Trump-Appointed Official Promises Full Push to Overhaul Plumbing of Mortgage Market

Wall Street Journal, Apr. 22, 2019--Andrew Ackerman, Ben Eisen (subscription)
Mark Calabria, in his first interview since taking the helm of the Federal Housing Finance Agency, said he wants to put Fannie Mae and Freddie Mac--bailed out during the crisis, but now profitable--on the road toward returning to private hands, something Washington policy makers have tried and failed to do for the past decade.

On the Precipice of Change: In Support of GSE Reform

Mortgage Media, April 22, 2019--David Stevens, CMB
Former MBA President & CEO says to protect generational impact of GSE reform process, policymakers must ensure the permanence of some of the most critical issues before any consideration to recapitalization and release.

How Fannie Mae, Freddie Mac Dodged a Cap on CEO Pay

Washington Post, Apr. 22, 2019--Renae Merle
The housing companies may have found a way around a congressionally mandated pay cap. Fannie Mae and Freddie Mac created a new job--president--transferring some of the work traditionally done by the CEOs to the new positions, according to government investigators. The presidents will be paid more than $3 million each.

Senior HUD Official Named FHFA Deputy Director

National Mortgage News, Apr. 16, 2019--Hannah Lang (subscription)
Adolfo Marzol, a senior official at the Department of Housing and Urban Development, has been named the principal deputy director of the Federal Housing Finance Agency.

Urban Institute: It Hasn't Been This Easy to Get a Government-Backed Mortgage in 10 Years

HousingWire, Apr. 22, 2019--Ben Lane
According to the new analysis from the Urban Institute, the level of mortgage credit available for loans backed by the Federal Housing Administration, Department of Veterans Affairs, and Department of Agriculture was higher during the fourth quarter than it was during any quarter since 2009.

Mortgages? Big Banks May Be Throwing in the Towel

MarketWatch, Apr. 16, 2019--Andrea Riquier
In the mortgage market of 2019, borrowers can do just about everything online, never meeting the lender behind the process. And as comments from executives of America's biggest banks made clear last week, that person--or institution--making the loan is increasingly less likely to be a banker. (MBA mention)

What Retail Recovery? Malls Under Pressure as Stores Close

Wall Street Journal, Apr. 16, 2019--Esther Fung (subscription)
Strong retail numbers last year from department stores Macy's Inc. and Nordstrom Inc. raised hopes that the beleaguered mall industry would finally rebound. But recent developments this year are pointing to more trouble ahead.

Kraninger Outlines Her Vision of a Revamped CFPB

National Mortgage News, Apr. 17, 2019--Neil Haggerty (subscription)
The Consumer Financial Protection Bureau should be focused on preventing consumer harm rather than merely handing fines against companies, Director Kathy Kraninger said Wednesday.

Debunking the Myth That Small-Dollar Mortgages are Riskier

Urban Institute, Apr. 17, 2019--Alanna McCargo, Sara Strochak
The authors found data show that small-dollar mortgage borrowers have comparable credit profiles to borrowers of midsize mortgages and that the loans perform similarly.

NINA Loans Make a Comeback with the 360 Mortgage Pilot Program

National Mortgage News, Apr. 18, 2019--Brad Finkelstein (subscription)
360 Mortgage is bringing back the no-income, no-asset loan, but says its $1 billion pilot's guidelines differ from those of the NINA loans that contributed to the financial crisis.

Key Trends Driving Investors Away From Traditional Lenders In 2019

Forbes, Apr. 19, 2019--Evan Gentry
The author, CEO and Founder of M360 Advisors, says there are many reasons why creditworthy borrowers with strong track records and desirable assets turn to nonbank lenders, and collectively they create an attractive fixed-income investment opportunity. (MBA mention)

Inside Destiny USA's Mortgage Emergency: Crisis or Hardball Bargaining? (N.Y.), Apr. 19, 2019--Rick Moriarty
Destiny USA's D-Day arrives June 6. On that day, its $430 million in mortgage loans come due in full, and the owner of the giant Syracuse mall is in danger of default.

About Servicing NewsLink

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