Mortgage Daily, Apr. 4, 2017Millions of dollars in recent settlements were disclosed with several firms for not meeting Federal Housing Administration mortgagee requirements. More than 100 firms were penalized for late recertification reports.
Category: Top National News
Guaranteed Rate Chief Stands Behind Executive
Chicago Tribune, Apr. 4, 2017–Becky YerakPeople make mistakes; that’s what Victor Ciardelli, chief executive officer and founder of Chicago-based mortgage provider Guaranteed Rate Mortgage, said when he learned that his company’s new business development director has blemishes on her work record, including a revoked real estate license.
Why We Could Get Negative Interest Rates Even Though The Fed Is Hiking
Forbes, Apr. 3, 2017–Stephen McBrideAt its March meeting, the Federal Reserve said monetary policy will remain accommodative “for some time.” This willingness to let inflation “run hot” means even as nominal rates rise, real rates–that is, the nominal interest rate minus inflation–are headed into negative territory.
Student Debt May Prevent Some Americans From Buying Homes
Wall Street Journal, Apr. 3, 2017–Josh Mitchell (subscription)Americans continue to default on student loans at a “stubbornly high” rate, and a small share of borrowers are unable to buy homes due to high levels of student debt, according to a new report from the Federal Reserve Bank of New York.
Tappable Equity Hits 10-Year High
National Mortgage Professional, Apr. 3, 2017–Phil HallAn annual home price appreciation of 5.5 percent during 2016 helped to increase the number of mortgage holders with tappable equity to 39.5 million, according to new data from Black Knight Financial Services.
Equity-Sharing Mortgages Make a Comeback, with Freddie’s Help
National Mortgage News, Apr. 3, 2017–Bonnie Sinnock (subscription)Freddie Mac has quietly been testing out automated purchases of conforming loans with equity sharing stakes of typically 10%. The equity stake is provided to consumers by a private company that was previously knowns as FirstREX, but rebranded itself last year as Unison.
Rising Rates, not Regulation, Top Lender Mortgage Market Concerns
National Mortgage News, Apr. 3, 2017–Bonnie Sinnock (subscription)The shift in mortgage rates has outpaced regulation as the housing market’s main driver.
Wells Fargo Told to Reinstate Whistle Blower, Pay $5.4 Million
Bloomberg, Apr. 3, 2017–Laura J. KellerThe U.S. government ordered Wells Fargo & Co. to reinstate a former bank manager who was fired after reporting suspected illegal behavior to superiors and a company hotline. The San Francisco-based lender also was ordered to give the employee about $5.4 million for back pay, compensatory damages and legal fees.
U.S. Factory Activity Cools Slightly; Trend Remains Bullish
Reuters, Apr. 3, 2017–Lucia MutikaniA measure of U.S. manufacturing activity retreated from a 2-1/2-year high in March amid a decline in production and an inventory drawdown, but a surge in factory jobs indicated that the sector’s energy-led recovery was gaining momentum.
U.S. Construction Spending Rose to Nearly 11-Year High
Associated Press, Apr. 3, 2017–Christopher RugaberU.S. developers ramped up construction spending in February to the largest amount in nearly 11 years, led by more building of homes, highways and schools.