HousingWire, May 26, 2017–Ben LaneWells Fargo’s proposed $142 million settlement in the class action lawsuit brought on behalf of the bank’s customers who had a fake account opened in their name is moving closer to being finalized, but the judge overseeing the settlement cautioned the bank that $142 million may not be enough money to compensate all the affected customers.
Category: Top National News
U.S. Economy Slowed Less than Expected in First Quarter; Outlook Cloudier
Reuters, May 26, 2017–Lucia MutikaniGross domestic product increased at a 1.2 percent annual rate instead of the 0.7 percent pace reported last month, the Commerce Department said on Friday in its second GDP estimate for the first three months of the year.
Quick Takes: Market Trends, Lack of Labor
UExpress, May 26, 2017–Lew SichelmanMuch has been written about the importance of Hispanics to the housing market. But the ownership rate among Asian-Americans and Pacific Islanders is even greater, according to the most detailed breakdown ever from the Census Bureau.
Homeowners Are Again Pocketing Cash as They Refinance Properties
Wall Street Journal, May 27, 2017–Christina Rexrode (subscription)Americans refinancing their mortgages are taking cash out in the process at levels not seen since the financial crisis.
ARMs Defy Overall Weekly Mortgage Slump
Mortgage Daily, May 27, 2017Although a week-over-week decline in new mortgage business was mostly across-the-board, adjustable-rate mortgage activity rose–with ARM share at its widest in over a year.
New Tenants for Mortgage C-Suites, Boards
Mortgage Daily, May 27, 2017–Sam GarciaFree agency in single-family lending is in full swing, and moves have been made in the boardroom,
A Likely Shift in the Mortgage Market is Creating ‘Prisoners’ in Housing
Business Insider, May 29, 2017–Akin OyedeleHome prices have recovered to pre-housing-crisis levels. But with slow wage growth, that means there are fewer affordable houses available to buyers, especially in bigger cities.
Fed Officials Likely to Raise Rates in June, Finalize Plans to Reduce Portfolio
Wall Street Journal, May 30, 2017–Nick Timiraos (subscription)Federal Reserve officials are likely to raise short-term interest rates at their meeting in two weeks and announce their framework for shrinking a $4.5 trillion portfolio of bonds and other assets later this year.
Mortgage Rates Sink to Their Lowest Levels of the Year
Washington Post, May 25, 2017–Kathy OrtonFreddie Mac said the 30-year fixed-rate average dropped to 3.95 percent with an average 0.5 point. (MBA mention)
U.S. Home Equity is Back, So Why Aren’t More People Borrowing?
Associated Press, May 25, 2017–Christopher S. RugaberHome prices have recovered and housing equity now equals 58 percent of home values–the highest point since 2006. Yet borrowing against that equity has barely budged from post-recession lows, which helps explain why consumer spending remains weak eight years after the Great Recession ended. (MBA mention)