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Volume 9 | Issue 35 | Tuesday, September 03, 2019

The Lede

 

MBA: 2Q Mortgage Production Profits at Highest Level Since 2016

Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $1,675 on each loan they originated in the second quarter, up from $285 per loan in the first quarter, the Mortgage Bankers Association reported on Thursday.

 

News & Trends

 
Special Servicing Volume Declines Again

Fitch Ratings, New York, reported the volume of commercial mortgage-backed securities loans and assets in special servicing declined nearly 10 percent between April and July to $9.8 billion.

Opportunity Zone Home Prices Well Below National Levels

ATTOM Data Solutions, Irvine, Calif., said in "opportunity zones"--special areas of the U.S. aimed at spurring improvement and development-nearly half of homes have median home prices below $150,000.

Black Knight: Tappable Equity at Record $6.3 Trillion

Black Knight, Jacksonville, Fla., said after falling through the second half of last year, tappable equity saw its second consecutive quarterly increase, hitting a record high $6.3 trillion in the second quarter.

First American: Defect Index Continues Downward Trend, Thanks to Refinancings

The refinance mini-boom has been good news for lenders; it's also been good news in deterring mortgage defects and fraud, according to First American Financial Corp., Santa Ana, Calif.

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. 

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.

MBA Education Advanced Risk Management Concepts Workshop in Chicago Sept. 15

MBA Education presents a special edition of its Advanced Risk Management Concepts Workshop on Sunday, Sept. 15 in conjunction with the MBA Risk Management, Quality Assurance and Fraud Prevention Forum in Chicago.

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.

Top National News

 
What this Mortgage Expert Says is Behind the Refinancing Boom

CNBC, Aug. 28, 2019
Robert Broeksmit, CMB, Mortgage Bankers Association President and CEO, joins "Squawk on the Street" to discuss the wave of mortgage refinancing as rates fall.

Lenders are Making More Money on Mortgages than They Have in Three Years

HousingWire, Aug. 29, 2019--Kelsey Ramirez
Lenders reported making a profit on mortgages in the second quarter. In fact, according to a report released Thursday by the Mortgage Bankers Association, lenders made the highest profit per loan they've seen since 2016.

Homeowners are Sitting on a Record Amount of Cash, But They're Not Really Tapping It

CNBC, Aug. 28, 2019--Diana Olick
"Savings have increased significantly since before the Great Recession, so the household balance sheet is just in a better position," said Bob Broeksmit, president and CEO of the Mortgage Bankers Association. "Perhaps the need to tap that equity is a little bit lower and there is a little bit more discipline among consumers."

Will GSE Reform Get Some Clarity from Long-Awaited Blueprints?

American Banker, Aug. 29, 2019--Hannah Lang (free article)
The mortgage industry will be looking for answers when the Trump administration unveils its plans to shake up the housing finance system and end the conservatorships of Fannie Mae and Freddie Mac. But the blueprints could raise just as many questions. (MBA mention)

10 Steps to Housing Finance Reform

MReport, Sept. 1, 2019--Brian O'Reilly
While the public debate has often envisioned and emphasized the need for legislative action, that avenue has been, and continues to be, an uphill battle in an unprecedented partisan political landscape. Still, stable growth in the housing market, strong employment, and the potential for rising interest rates point to the increasing need to establish a "new normal" for housing finance. (MBA mention)

Consumer Groups, Lenders Find Common Cause Against CFPB Mortgage Provision

American Banker, Aug. 28, 2019--Kate Berry (subscription)
Though advocates and industry are rarely aligned, they are starting to coalesce around a plan that would call for the elimination of the CFPB's 43% debt-to-income limit as part of its qualified mortgage rule.

Consumer Watchdog Starts Hiring After 15% Staff Drop Under Trump

Wall Street Journal, Aug. 27, 2019--Yuka Hayashi (subscription)
The Consumer Financial Protection Bureau is looking for workers again, following departures during a hiring freeze and budget cuts by Trump administration officials that took over the agency in late 2017.

Homeowners Tapping Retirement Funds to Cover Debt Needs

National Mortgage Professional, Aug. 27, 2019--Phil Hall
A new survey conducted by MagnifyMoney has found more than half of homeowners are making an early withdrawal into their retirement savings funds to pay down housing and personal debt.

PMI Gains as Fewer First-Time Homebuyers Use FHA

HousingWire, Aug. 27, 2019--Kathleen Howley
The share of first-time homebuyers using conventional mortgages that require private mortgage insurance, or PMI, to compensate for low down payments increased in the second quarter while the use of FHA loans fell, said Genworth.

Unconventional Mortgages Attract Warning From Regulator

Wall Street Journal, Aug. 29, 2019--Lalita Clozel (subscription)
Asset-depletion loans, also known as asset-dissipation loans, are part of a small but growing subset of the mortgage market that includes subprime loans and other riskier products. They assume borrowers draw from assets to cover a mortgage, rather than just income.

Historic Asset Boom Passes by Half of Families

Wall Street Journal, Aug. 30, 2019--David Harrison, Maureen Linke (subscription)
The decadelong economic expansion has showered the U.S. with staggering new wealth driven by a booming stock market and rising house prices. But that windfall has passed by many Americans.

U.S. Charges Reverse Mortgage Lender Live Well's Ex-CEO with Fraud

Reuters, Aug. 29, 2019--Jonathan Stempel
Michael Hild, 44, who was also Live Well's chief executive, generated more than $24 million of compensation tied to the scheme, which ran from September 2015 to May 2019, according to federal prosecutors in Manhattan who announced the charges.

Ditech Sale Blocked by Homeowner Claims of Botched Mortgages

National Mortgage News, Aug. 29, 2019 (subscription)
Federal bankruptcy Judge James Garrity Jr. rejected the plan after two days of hearing evidence and arguments earlier this month from lawyers for Ditech and a consumer creditor committee. The committee asserted the company shouldn't be able to sell its businesses if it meant wiping out the ability of homeowners to correct what they say are errors related to their loans.

Measuring Increases in Mortgage Debt

MReport, Aug. 30, 2019--Seth Welborn
Mortgage debt is at an all time high as home prices rise to record levels, according to a report from HowMuch.net.

Risky Seller Financing Flourishes Where Homes Are Cheapest

Wall Street Journal, Aug. 30, 2019--Ben Eisen (subscription)
"Contracts for deed," prone to abuse, are often only choice for buyers shut out of mortgage market.

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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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.