Wall Street Journal, Feb. 5, 2019–Andrew Ackerman, Lalita Clozel (subscription)The Federal Reserve on Tuesday said that its stress test for big banks will imagine a rapid increase in unemployment, as it announced the details of the hypothetical scenario that banks must survive to pass the latest round of the exams.
Category: Top National News
CMBS Delinquency Falls to a New Post-Crisis Low
National Mortgage Professional, Feb. 5, 2019–Phil HallThe delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities began 2019 by continuing its 2018 downward spiral, according to data from Trepp LLC.
Fed Exempts Most Regional Banks from Stress Testing in 2019
American Banker, Feb. 5, 2019–John Heltman (subscription)The Federal Reserve on Tuesday agreed to exempt banks with assets of $100 billion to $250 billion from the 2019 supervisory stress testing cycle, an announcement included as almost an afterthought in a suite of other changes unveiled to provide greater transparency to its stress testing regime.
U.S. Services Sector Activity at Six-Month Low; Shutdown Blamed
Reuters, Feb. 5, 2019–Lucia MutikaniU.S. services sector activity slowed to a six-month low in January as businesses worried about the impact of a partial shutdown of the federal government on the economy.
Broeksmit at IMB: ‘Working to Benefit the Entire Ecosystem’
Mortgage Media, Feb. 4, 2019Talking with Mortgage Media’s SA Ibrahim at the MBA Independent Mortgage Bankers conference in San Francisco last week, MBA President and CEO Bob Broeksmit, CMB, said when he took the reins of the Mortgage Bankers Association five months ago, he knew it was a pivotal time for the industry.
The Average Adjustable-Rate Mortgage is Nearly $700,000. Here’s What that Tells Us
MarketWatch, Feb. 4, 2019–Andrea RiquierThat data point, courtesy of the Mortgage Bankers Association, is a reminder–perhaps an uncomfortable one–that the mortgage industry must still offer products that make it artificially affordable to get people in the door, with the intention of refinancing later.
IRS Offers New Rules and ‘Safe Harbors’ for Pass-Through Deductions
National Real Estate Investor, Feb. 04, 2019–Beth Mattson-TeigOne of the big windfalls for real estate professionals in the 2017 Tax Cuts and Jobs Act is the opportunity to take up to a 20 percent deduction of income from pass-through entities. But some uncertainty clouding the picture may be taking some of the wind out of the sales of that enthusiasm.
FICO Scores and Mortgage Rates
Washington Post Writers Group, Feb. 4, 2019–Kenneth HarneyA new statistical review, conducted for this column by mortgage network Lending Tree–based on more than 1 million actual loan offers during 2018–suggests that, depending on market conditions, a “good” 700 FICO score could get you nearly as attractive a rate deal as someone with an 800-plus score.
New York Regulators Reject Fidelity’s Acquisition of Stewart
National Mortgage News, Feb. 4, 2019–Brad Finkelstein (subscription)The New York Department of Financial Services disapproved the merger between Fidelity National Financial and Stewart Information Services, regulatory filings from both title insurance underwriters said.
GSE Reform, CFPB Underwriting Rule are on Collision Course
American Banker, Feb. 4, 2019–Kate Berry (subscription)The White House and Senate Banking Committee are pursuing parallel tracks to end the GSEs’ federal conservatorships. Any resulting plan must deal with whether GSE-backed mortgages are still exempt from the Consumer Financial Protection Bureau’s Qualified Mortgage rule. “Not doing something to extend the patch would be highly disruptive,” said Bob Broeksmit, the president and CEO of the Mortgage Bankers Association.