Wall Street Journal, Nov. 27, 2018–Peter Grant (subscription)A venture led by Prudential Financial Inc. is spending nearly $600 million for 4,000 housing units aimed at lower-income workers, the latest sign that investors see bigger gains in lower-rent apartments than in the upscale ones that have led the recovery.
Category: Top National News
Battered Mortgage Sector May Be Set for a Performance Turnaround
Bloomberg, Nov. 26, 2018–Christopher MaloneyIn terms of excess return versus Treasuries, the performance of mortgage securities since September provided fixed-income investors little to brag about over the holiday dinner table. All of this begs the question–have mortgages cheapened enough for a turnaround?
GSE Capital Rule is Hypothetical, But FHFA Gets Earful Anyway
National Mortgage News, Nov. 26, 2018–Hannah Lang (subscription)A risk-based capital plan for Fannie Mae and Freddie Mac is only theoretical as long as the two mortgage giants remain under government control. But the Federal Housing Finance Agency proposal requiring the government-sponsored enterprises to prepare for future crises still elicits strong opinions. (MBA mention)
Wide-Open Outlook for Fed Rate Policy in 2019
Wall Street Journal, Nov. 27, 2018–Nick Timiraos (subscription)Federal Reserve officials are moving into a more unpredictable phase of policy-making after two years of removing economic stimulus in regular, quarterly intervals.
Weren’t Algorithms Supposed to Make Digital Mortgages Colorblind?
American Banker, Nov. 26, 2018–Penny Crossman (subscription)When banks and fintechs offer mortgages online using automated underwriting, they charge creditworthy minorities more than white applicants – the same way human loan officers do. That’s the conclusion of a study conducted by professors at the University of California, Berkeley.
Altisource Portfolio Solutions Ending Home Buying Business
HousingWire, Nov. 26, 2018–Ben LaneAltisource plans to discontinue its “Buy-Renovate-Lease-Sell” business, which focuses on buying, renovating, leasing and selling single-family homes to real estate investors.
Real House Price Growth Accelerates
National Mortgage Professional, Nov. 26, 2018–Phil HallReal house prices increased two percent between August and September and increased 15.3 percent from September 2017, according to the latest Real House Price Index report from First American Financial Corp.
Trump Faults Treasury Secretary over Fed Pick
Wall Street Journal, Nov. 23, 2018–Peter Nicholas, Nick Timiraos, Bob DavisPresident Trump has expressed dissatisfaction with Treasury Secretary Steven Mnuchin, blaming him for the appointment of a Federal Reserve chairman who has been raising interest rates, a move Mr. Trump worries will jeopardize economic gains as his 2020 re-election campaign approaches.
What if You Could Trade Sweat Equity for a Cash Down Payment and Closing Costs?
Orange County Register, Nov. 24, 2018–Jeff LazersonThis week Freddie Mac gave the go-ahead to unlimited sweat equity to count toward your down payment and closing costs through its enhanced Home Possible Mortgage program.
Borrowers Are Tapping Their Homes for Cash, Even as Rates Rise
Wall Street Journal, Nov. 25, 2018–Ben Eisen, Christina Rexrode (subscription)More than 80% of borrowers who refinanced in the third quarter chose the “cash out” option, withdrawing $14.6 billion in equity out of their homes, according to government-sponsored mortgage corporation Freddie Mac. That is the highest share of cash-out refis since 2007.